Did you know that currently, Gen X is the largest generation of homebuyers? While you might not consider yourself gen x, you’ll definitely want to understand the real estate closing process for when you are ready to buy a home!
In order to successfully close a real estate sale or purchase, many aspects must work together in harmony. Due to this, you may find yourself facing a range of issues before the closing date.
Outside of our real estate closing guide, an experienced closing attorney can walk you through these processes to find a solution that completes your transaction.
Keeping surprises to a minimum is beneficial to both parties in a real estate transaction, since it makes things as simple as possible for everyone.
Here’s what you need to know about real estate closings:
1. What to Expect from Property Inspections
2. Tackling Appraisal Pricing
3. Final Walkthrough
What to Expect from Property Inspections
Before sealing the deal, a home inspection gives you a final chance to find issues with the home, and have the seller resolve them. In order to help prepare you for the inspection and ensure everything goes as smoothly as possible, it's crucial to know what the inspector will look for.
In an inspection report, a home inspector examines things like a home's foundation, structural components, roof, HVAC, plumbing, and electrical systems, then writes a summary of his findings. Generally, a home inspection takes two to four hours, but it may take longer depending on the size of the home.
It may take the home inspector several days to complete his written report after he or she has performed a physical inspection. During the inspection, buyers should explore their new home thoroughly and ask questions. By doing so, you can get much more information than you can from the report alone.
When it comes to the number of defects identified in your report, don’t sweat, as most may be little things you shouldn’t have to worry about. However, you should pay attention to the severity of the defects, as extreme problems can often be deal-breakers. If serious problems arise, talk to your home inspector, real estate agent and your real estate attorney about your best ways to move forward.
Keep in mind: Amidst your closing transaction, a real estate closing attorney can help you complete a title search that might uncover outstanding fees, such as taxes or liens, requiring the sale to be halted or delayed. Issues such as these can be resolved or brought to a close with the help of a residential closing attorney.
Tackling Appraisal Pricing
Appraisal pricing is another element of your closing process that you should prepare for. Appraisals often have a substantial impact on the ability of buyers to obtain financing. Due to this, lenders are less likely to approve loans that exceed the sales price if the appraised value is less than the sales price.
It is possible for the buyer to have to obtain additional funds to complete the deal if the appraisal is very different from the sales price. If this is the case, a larger down payment may be necessary, or alternative funding may be sought from another lender.
Accordingly, funding issues can affect the closing process. With the help of a real estate attorney, you’ll be able to obtain all necessary info prior to closing to ensure a successful transaction.
Do you need help with your residential closing process? Contact Rochford Law & Real Estate Title today!
Final Walkthrough
One of the last processes of your residential closing may be your final walkthrough of the property. You must visit the property one last time before closing. Buyers will observe the property during this period to ensure it appears to be the same as at the beginning of the process.
Lastly, they will make sure all requested repairs have been performed. Repairs that are not finished or new issues may delay closing. Prior to moving forward with the transaction, new or outstanding property issues will need to be resolved. An experienced real estate lawyer can assist with minimizing these risks.
Contact Rochford Law & Real Estate Title
Hiring an experienced real estate closing attorney like Rochford Law & Real Estate Title in Nashville, TN can save you time and money in the long run. It’s best to cover all your bases and get through a real estate transaction with as little problems as possible. However, it’s comforting to know that should a dispute pop up, a real estate litigation attorney can help find a resolution.
Contact Rochford Law & Real Estate Title today!
