Escrow inspections & appraisals
Inspections and Appraisals
Most buyers will have the property inspected by a qualified property inspector within the time frame agreed upon in the Colorado purchase contract. Some buyers may also arrange for additional inspections by professionals who specialize in specific areas, such as roofing, HVAC, structural components, or other systems. If the agreement is contingent upon financing, the buyer’s lender will typically require an appraisal to determine the property’s market value. This helps the lending institution confirm that the property provides sufficient collateral for the loan. Commercial property transactions may also involve additional due diligence, such as environmental assessments or soil testing, when required by the buyer or lender.
The Closing Agent.
In Colorado, a title company or other qualified closing professional will typically coordinate the closing process and work with the parties involved to ensure the transaction is completed properly. The title company researches the recorded history of your property and provides title services designed to identify existing liens, mortgages, restrictions, easements, and other matters affecting ownership. The closing process also ensures that required documents are properly prepared and that the transaction is completed according to the terms of the purchase agreement.
Contingencies.
A contingency is a condition that must be satisfied before a particular obligation under the purchase contract is required to proceed. For example, a buyer may include an inspection contingency that allows the buyer to investigate the condition of the property and respond according to the terms and deadlines established in the contract.
Before completing the purchase of your property, the buyer may review various aspects of the property and transaction as provided for by the Colorado purchase agreement and applicable addenda. These may include:
- Obtaining financing and insurance;
- Reviewing pertinent documents, such as title documents, seller disclosures, and other property information; and
- Inspecting the property. Depending on the property and terms of the contract, inspections may include the roof, structural components, HVAC, plumbing, electrical systems, fireplace or chimney, sewer or septic systems, well, pool or spa, drainage, mold, radon, and other relevant areas.
Depending on the outcome of these inspections and other contractual milestones, one of two things may happen:
- Each milestone is successfully completed and the applicable contingencies are satisfied or removed, bringing you one step closer to closing; or
- The buyer, after reviewing the property and related documents, may request repairs, concessions, or a renegotiation of certain terms of the contract.
How do you respond objectively and fairly to a buyer when a renegotiation is requested while still protecting your best interests? This is where a professional listing agent can make a real difference in the outcome of the transaction. Having experience with a wide range of Colorado property sales, Golesh Team will provide knowledgeable guidance and committed representation throughout the transaction, helping you evaluate your options and make informed decisions.
Loan Approval and Appraisal.
We suggest giving careful consideration to buyers who have obtained a lender pre-approval or written loan commitment, as this can provide more information about their financing position than a basic pre-qualification or no documentation from a lending institution. When financing is involved, expect an appraiser selected by the lender to review your property and determine whether the appraised value supports the agreed-upon sales price. Golesh Team will help you navigate this important stage and keep you informed as the transaction moves toward closing.