Building Inspection the Appraisal and Closing

Inspection and Appraisal

The Importance of Home Inspections

Typically, the buyer will require a home inspection. A professional home inspector will thoroughly search the home for visual defects such as water damage, cracks in the walls, floors or foundation, plumbing leaks, or pest damage. They will also search for hidden flaws such as asbestos insulation, electrical problems, or building, health/environmental or safety code violations. If the inspection uncovers areas that need repair, you and the buyer will negotiate how these discoveries may affect the terms of the agreement.

Appraisal—Verifying the Value of the Home

An appraisal is an estimate of your property’s value on the open market, generally prepared by a lender for their benefit. Appraisers consider a number of factors, including square footage, floor plan, amenities, and energy efficiency. Other issues appraisers may take into account are neighborhood quality, a property’s proximity to transportation, shopping, and schools as well as lot size, topography, view, and landscaping

Closing

Title and Escrow

The final stage of the transaction process occurs with the transfer of title from seller to buyer. After closing has occurred, the policy is sent to you by your title and escrow professional, the third party who transfers the money and documents (including title and deed) from the buying and selling parties. The escrow company prepares documents, draws up the closing statements, obtains necessary signatures, records documents, and receives and disburses funds. The proceeds from the sale are released directly to you, the seller, via wire, automatic deposit, or check. Funds can also be deposited into an escrow account opening for the purchase of your next home.

The Exchange of Property and Funds

Once you've sold your home, make sure to keep your closing and settlement papers organized in a file. Be sure to include receipts for any home improvements you made while you owned the house in the event that you have to pay capital gains tax. Also, know your rights as a home seller, including one of the benefits of buying a home – the tax breaks you receive from the government. Contact the Internal Revenue Service directly at 800-TAX-FORM and ask for the following free publications, which are designed to assist you in the sale of your home:

521 Moving Expenses
523 Selling Your Home
527 Residential Rental Property
541 Partnerships
551 Basis of Assets
555 Community Property
561 Determining the Value of Donated Property
908 Bankruptcy Tax Guide
936 Home Mortgage Interest Deduction

Releasing the Property to the New Owners

Once the closing papers have been completed and the deed recorded with the county, the buyer can take legal ownership of the home. The possession date for the new owner is determined by the term of the sales contract. Prior to possession, you should start contacting the phone, electric, natural gas, garbage, and other utility companies to close any accounts relating to the home under your name.

Through our unique Concierge program, Coldwell Banker Bain partners with a variety of service providers that offer a broad range of home-related services to help your move go smoothly. From landscaping and interior design to moving and cleaning services, we’ll save you time, offer superior service, and provide a one-stop resource for all of your real estate needs.

Click here to access a list of service providers from our Concierge program to help manage the work you need done to your home.

DISCLAIMER: Coldwell Banker Bain attempts to list service providers with a record of customer satisfaction, and we welcome your feedback. However, Coldwell Banker Bain has no ownership or control over any service providers, cannot be involved in the terms or performance of your agreement with any provider you select, and cannot guarantee your satisfaction, or proper performance of a provider’s services.