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Escrow Inspections and Appraisals

Inspections and Appraisals

Most buyers will have the property inspected by a licensed property inspector within the time frame that was agreed upon in the effective contract to purchase. Some buyers will have several different inspectors inspect the property, if they wish to obtain professional opinions from inspectors who specialize in a specific area (eg. roof, HVAC, structure). 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 third party. This is done so that the lending institution can confirm their investment in your property is accurate. A buyer of a commercial property may also have a complete environmental audit performed and/or soil test, if required by the lending institution.

The Closing Agent.

Either a title company or an attorney will be selected as the closing agent, whose job is to examine and insure clear title to real estate. After researching the complete recorded history of your property, they will certify that 1) your title is free and clear of encumbrances (eg. mortgages, leases, or restrictions, liens) by the date of closing; and 2) all new encumbrances are duly included in the title.

Contingencies.

A contingency is a condition that must be met before a contract becomes legally binding. For instance, a buyer will usually include a contingency stating that their contract is binding only when there is a satisfactory home inspection report from a qualified inspector.

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 do you respond objectively and fairly to the buyer when a renegotiation is demanded, while acting in your best interests? This is when a professional listing agent can make a real difference in the outcome of the transaction. Having dealt with various property sales in the past, we guarantee our expertise and total commitment to every customer, no matter what their situation is.

Loan Approval and Appraisal.

We suggest that you accept buyers who have a lender’s pre-approval, approval letter, or written loan commitment, which is a better guarantee of loan approval than a pre-qualification or no documentation from a lending institute. Expect an appraiser from the lender’s company to review your property and verify that the sales price is appropriate.

Testimonials

Team Azzi you're an amazing team... Thank you for staying on top of everything and keeping the process smooth and professional.

Union Bank

Jordan and Tony were my agents for a 1031 exchange… (Jordan) went above and beyond his duties to make sure we closed… My exchange property is out of state and he guided me through everything since this was all new to me. It was the easiest real estate transaction I’ve ever had. Even now after

Sally Lefton

Learned a lot with this transaction! Thanks to the Azzi team - you really set the standard for your industry, both in professionalism and skill.

Jason Birkenstock

Azzi Advisors did great and I’m very proud of everyone this was a great transaction even though it was not an easy one and I’m very proud and thankful to everyone! Special mention goes to Tony and Rabbie, working with you is nothing short of awesome. Thanks for doing everything necessary to get the job

Alan T. Nissel

Tony and all of the Azzi Staff you all indeed know your stuff! Your professionalism & expertise of commercial real estate shined through in every step of the way. Your team always was responsive and followed up on concerns…. you all were always on top of all the details Thank-you.

Susan Wahlstrom

Have questions? Ask us!