Eight Steps to Sell Property

7. Inspect/Appraise

Inspect: Upon acceptance of a buyer's offer, the buyer will likely order property inspections - most of which will be conducted at the buyer's expense. These inspections may include any of the following: structural, pest, radon, water quality and quantity, septic, lead, heating-plumbing & electrical.

The inspections are likely to be conducted by professional contractors. Items noted in these inspections as "serious" or "code violations" may be reported to you with a request from the buyer, that you make repairs, at your expense, prior to closing.

If and when this occurs, you will need to decide if you will do one, some or all of the suggested repairs. You can pick and choose. However, if there is a "code violation" or a serious repair (ex: needs new furnace) and you do not agree to make the repair – and the offer falls apart – you are required by state law to amend your "Property Disclosure" to reflect the known deficiencies.

There are very tight timelines in the process of asking the seller to make repairs or correct code violations. Your TPN Realtor is fully aware of how these negotiations are conducted and the procedures to follow to protect your interests.

Appraisal: Upon the satisfactory completion and resolution of the inspections, the buyer's lender will hire an appraiser to establish the current market value of your property. The appraisal must equal or exceed the price that you and the buyer agreed upon, OR the lender will not approve the buyer's loan.

Should it occur that the appraised value of the property is less than the agreed upon selling price (and the buyer's loan is denied) you may go back into negotiation with the buyer, OR allow the transaction of fail - return the buyer's deposit - and place your property back on the market.

If the appraisal is satisfactory, your TPN Realtor will then transmit all documents to your attorney and the attorney for the buyer. After the buyer's attorneys have completed a Title Search on the property, the attorneys will coordinate a date on which a closing will be scheduled.

Property Valuation Next Step >