This is our second video on Selling Your Home With a Realtor which covers inspection stage.
Once a you have a sales contract on your home, the prospective buyers and their mortgage company are going to want your home inspected and appraised. There are generally two types of inspections performed during this stage: General Inspection and Termite Inspection.
The inspections result in reports that will list out repairs that need to be made. The buyers will usually do one of three things: 1) require you to make the repairs, 2) lower the sales price or 3) walk way from purchasing your home.
The appraisal will be performed by a company selected by the prospective buyers mortgage company. The appraiser looks at similar homes that have sold in the area over the past three months. Because of the amount of foreclosures on the market, many times the appraisal will come back lower than the contract price. When this occurs one of three things happens: 1) the prospective buyers have to make a larger down payment, 2) you have to reduce the sales price or 3) the buyers walk away.
As you can see once you have a sales contract does not mean that the house will be sold.
We hope this episode has been helpful.
We wish you success in selling your home.
Dave & Loren