ESCROW PROCESS

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For sellers, defects in the property discovered during the inspection can cause a lot of problems. A prelisting inspection allows you to learn about and make needed repairs before you put your house on the market.

At the end of the day, the under-contract or escrow period serves as time for the buyer or seller to discover everything necessary for the deal to take place. The earnest money submitted by the buyer typically goes back to the buyer if the deal falls through with cause on either side, like a low appraisal or major cracks in the foundation, though rules may vary based on state laws.

 

Before completing his or her purchase of your property, the buyer goes over every aspect of the property, as provided for by purchase agreements and any applicable addendums. These include:

• Obtaining financing and insurance;

• Reviewing all pertinent documents, such as preliminary title reports and disclosure documents; and

• Inspecting the property. The buyer has the right to determine the condition of your property by subjecting it to a wide range of inspections, such as roof, termite/pest, chimney/fireplace, property boundary survey, well, septic, pool/spa, arborist, mold, lead based paint, HVAC, etc.

Depending on the outcome of these inspections, one of two things may happen:

1. Either each milestone is successfully closed and the contingencies will be removed, bringing you one step closer to the closing; or

2. The buyer, after reviewing the property and the papers, requests a renegotiation of the terms of contract (usually the price).

How to respond objectively and fairly to a buyer when a negotiation is needed, while simultaneously acting in your best interest is when a professional such as myself will make a difference in the results of the transaction.

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