Escrow, Inspections and Appraisals
The Purchase Contract and the Earnest Money Deposit
An effective agreement is a legal arrangement between a potential purchaser and you as the Seller.
Some important tips to keep in mind to streamline the process:
Keep written records of everything. We will assist you in making sure the Purchase Offer, Counter Offers and other related documents for the purchase of your home is on track and that timelines are followed.
- Stick to the schedule. Now that you have sold your home, you and the buyer will be given a timeline to mark every stage in the process of closing the real estate contract. Your Agent will help you meet the requirements on time ensuring a smoother flow of negotiations so that each party involved is not in breach of their contracts. During the process, we will keep you constantly updated, so you will always be prepared for the next step.
The Closing Agent
A title (Escrow) company will typically be selected as the closing (Escrow) agent. The closing agent will hold the deposit in escrow and will research the complete recorded history of the property to ensure that the title is free and clear of encumbrances or liens by the date of closing and that all new encumbrances are properly added to the title.
Once the Buyers’ offer is accepted by you as the Seller, the Buyer will schedule a licensed property inspector to inspect the property within the timeframe that was agreed upon in the effective contract to purchase.
Depending on the outcome of these inspections, one of two things may happen:
Either each milestone is successfully closed and the contingencies will be removed, bringing you one step closer to the close, or
- The buyer, after reviewing the property and the papers, requests that you as the seller make repairs to the property per the inspections, or the terms of contract. We can help you find the right professionals make repairs if so needed.
Appraisal and Lending
It’s important that you keep in close communication with your agent who will let you know when additional documents are. If the agreement is conditional upon financing, then the property will be appraised by a licensed appraiser to determine the value for the lending institution, via a third party. This is done so that the lending institution can confirm their investment in your property is accurate.
Appraisers are specialists in determining the value of properties, based on a combination of square footage measurements, building costs, recent sales of comparable properties, operating income, etc.Typically, within two weeks of closing, double check with the lender for the buyer will contact us to confirm sure the loan will go through smoothly and on time.
The Buyer will need to obtain property insurance for their new home. As a seller, you will want to contact your property insurer provider to confirm that your policy is cancelled so you no longer pay to insure the home.
Don’t Forget About Utilities
When you move out of your new home, you will want to make arrangements for electricity, water, gas, cable, and phone to be taken out of your name. The Buyer will make their own arrangements to transfer everything to their name.
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Todd was patient and diligent with our searchSteve & Holly N., Prescott City Manager from 2003-2011
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