Deciding to Sell

Selecting an Agent and Price

Prepare to Sell

Accepting an Offer

Escrow Inspection and Appraisals

Close of Escrow

Inspections and Appraisals

Most buyers will have the property inspected by a professional property inspector within the time frame that was agreed upon in the 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, sewer, Radon, 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.

The Closing Agent

In Colorado, a title company 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, Radon, etc.

Depending on the outcome of these inspections, one of three 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 a renegotiation of the terms of contract (usually remedy of objection(s) or sometimes price).
  • The buyer can back out of the deal and get their earnest money back as long as they are within the time frame and conditions of the contract.

How do we 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 and scenarios 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, or a pre-qualification vs a buyer who has no documentation from a lending institution. Expect an appraiser from the lender’s company to review your property and verify that the sales price is appropriate.