INSPECTIONS & APPRAISALS

 

 

 

 

 

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The Initial Agreement and Deposit.

An effective agreement is a legal arrangement between a potential purchaser and the property’s seller.

Some essential tips to keep in mind to streamline the process:

• Keep written records of everything. For clarity, it will be beneficial to transcribe all verbal agreements, including counter-offers and addendums, and to convert them into written agreements to be signed by both parties. We will assist you in drafting all the paperwork for your purchase and ensure you have copies of everything.

• Stick to the schedule. Now that your offer is selected, a timeline will be given to mark the stages of the real estate sales contract. Meeting the requirements on time ensures a smoother flow of negotiations so that each party involved is not in breach of their agreements. So that you are well prepared, I will keep you updated during the process.

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Inspections.

Once the seller accepts your offer, you will need to have a licensed property inspector inspect the property within the time frame agreed upon in the effective contract to purchase. You may elect to have different inspectors inspect the property if you want professional opinions from inspectors who specialize in a specific area (e.g., roof, HVAC, structure). If you are purchasing a commercial property, you will need an environmental audit done on the site for the lending institution. Again, I can recommend several different inspectors.

 

Appraisal and Lending.

It would be best if you kept in close communication with your lender, who will let you know when additional documents are needed to approve your loan application and fund your loan. 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. 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. When you are within two weeks of closing, double-check with your lender to be sure the loan will go through smoothly and on time.

 

Property Insurance. 

If you are obtaining a loan, your lender will require you to purchase a certain amount of insurance on the property. The value will depend on the lending institution and the property’s purchase price. Shopping around for insurance may save hundreds of dollars a year on homeowners insurance. You can also save money with these tips.

• Consider a higher deductible.  Increasing your deductible by just a few hundred dollars can make a big difference in your premium.

• Ask your insurance agent about discounts.  You may get a lower premium if your home has safety features such as deadbolt locks, smoke detectors, an alarm system, storm shutters, or fire-retardant roofing materials. Persons over 55 years of age or long-term customers may also be offered discounts.

• Insure your house, NOT the land under it.  After a disaster, the land is still there. If you do not subtract the value of the land when deciding how much homeowner’s insurance to buy, you will pay more than you should.

• We will be happy to recommend experienced, knowledgeable insurance agents for every property type.