Molina Realtors: Information on Escrow Inspections and Appraisals in Minneapolis MN
Escrow Inspections and Appraisals in Minneapolis MN
When it comes to navigating escrow inspections and appraisals in Minneapolis MN, most homebuyers 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 home 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
At Molina Realtors, 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.
FAQ | Escrow Inspections and Appraisals in Minneapolis MN
What is escrow?
Escrow is a process where a neutral third party holds important funds and documents during a real estate transaction. This ensures that both the buyer and seller meet all agreed-upon terms before the sale is finalized.
Why do I need a home inspection?
A home inspection helps identify any potential issues with the property, such as structural problems or needed repairs. This allows buyers to make informed decisions and negotiate repairs or price adjustments if necessary.
What does a home inspector check?
A licensed home inspector examines various aspects of the property, including the roof, HVAC systems, and structural components, to ensure everything is in good condition.
What is a home appraisal?
A home appraisal is an assessment conducted by a licensed appraiser to determine the property’s market value. This helps lenders ensure they’re not lending more than the property’s worth.
Who orders the appraisal?
Typically, the buyer’s lender orders the appraisal to confirm the property’s value aligns with the loan amount.
How can I prepare my home for an appraisal?
To prepare for an appraisal, ensure your home is clean and any necessary repairs are completed. This can positively influence the appraiser’s evaluation.
What happens if issues are found during the inspection?
If the inspection reveals problems, the buyer can request repairs, negotiate a price reduction, or, in some cases, cancel the purchase agreement, depending on the contract terms.
How long does the escrow process take?
The escrow process typically takes 30 to 60 days, but the timeline can vary based on the agreement between the buyer and seller.
Can I sell my house without an inspection or appraisal?
While it’s possible, most buyers and lenders in Minneapolis MN, require both to ensure the property’s condition and value.
How can Molina Realtors assist with escrow inspections and appraisals in Minneapolis MN?
At Molina Realtors, our experienced agents guide you through each step of the home-selling process. We coordinate with escrow inspections and appraisals in Minneapolis MN to ensure a smooth transaction, helping you sell your house fast and efficiently.
For more information on escrow inspections and appraisals in Minneapolis MN, contact us today to speak with one of our knowledgeable real estate agents.