Tuesday, February 21, 2017

Pre-Closing Inspection Checklist

This is a guide that is usually a form that helps you in the process of inspecting a home before the closing. It is a form that contains key areas of inspection and may vary according to the home inspector doing the inspection. The key areas that are commonly looked out for in inspection checklist are:

·         Home Exterior -  here, the buyer checks the drainages and their conditions; any problems with the roof, shutters or loose sidings; conditions of the vents, power and AC line connections; any chips or gaps on the walls, drives, or cracks; among others

·         Windows and doors – are all the doors and the windows of the property in good conditions? Doors and windows for the main home, garage, and servant quarters should be well checked.

·         Walls, ceilings and floors – here the nail pops are checked, nicks, missed spots on paintings; gaps in the trim; floors for loose carpeting, gaps or chips in wooden floors, ripples in vinyl covering, cracks, missing ceramics, and so on.

·         Kitchen and baths – condition of the appliances, plumbing fixtures, showers and tubs, colours. Check for any cracks, scratches or scuffs. Cabinets, mirrors, counter tops, etc.

·         Electronics – check for connection using plug-testers in electrical receptacles and outlets to confirm is they are live. Confirm if the electronic items work (TV, DVD, fridge, etc).

·         Basement and attic - any cracks or leaks in the foundation. Stare handrails, installation of attic insulators.

Home Inspections Checklist and what to look for | Magic Minute | Real Estate Tips

Peter Lorimer, CEO of PLG Estates shares the specifics to consider when doing an inspection. He points out that apart from getting a general home inspector during a pre closing inspection, skilled inspectors may be contracted to help is areas general inspectors cannot handle. Some of these areas discussed include. 

Chimney Inspection – 

here, he advises that you get the services of a chimney inspector if the house you are about to buy has a chimney. This is a task that most general home inspectors cannot handle.
Sewer Inspection – this task requires a skilled individual or a company and a general inspector is not one of them. A sewer inspector is contracted to check if the sewerage functions properly without any defects.

Geological Inspection – 

a geologist may be hired to inspect the home especially if it is located up a hill or down a valley to check some of the risks that the home might be exposed to geologically and how they can be fixed.
Survey – if the buyer is not sure of the boundaries of the home, he might call on surveyors to help handle the case since a normal inspector is not able to perform the task. This is important as it helps a buyer know whether he is being duped or being sold an extension of a property that does not belong to the seller.

Real Estate Closings Checklist - Performing A Successful Real Estate Closing As Buyers

Pre closing inspection tips are shared in the YouTube video to prevent closing of the property to fall apart. There are steps discussed in order to make sure that inspection and closing of the property is done the right way for both the parties, that is, the buyer and the seller. From the video, some of the steps include

1.      Earnest money and contingency – earnest money secures interest in the property offered and ensuring the contract has a contingency period which is the time to perform due diligence of the contract. It is usually 7 to 14 days

2.      Funding in place – get the source of funding the property in place. For instance, get a bank approval for the property. Setting some funds aside is important towards sealing the deal.

3.      Title Company – finding a title company for the transactions ahead. Title companies work as middlemen between the two parties. On the same, do title searches to make sure the property is clear and if it is not clear, the buyer should contact appropriate authorities to get advice on whether to proceed with the deal or not.

4.      Real estate attorney – the forth step to get the services of a real estate attorney. This step is optional when dealing with a title company but because of the issues you might not clearly understand; it is advisable to get a reliable attorney.

5.      Negotiate the closing costs – title companies might send the buyer the costs of handling the closing of the property a week before but it is important to review and understand the costs. This will help in negotiating with the company. On the closing costs, listed are the costs that the buyer will incur and the seller too during the inspection and closing.

6.      Home inspection – the next step is to complete the home inspection by the buyer. This is done within the contingency period. When a serious problem is spotted during the inspection, the buyer should raise the issue with concerned parties.

7.      Negotiate the selling price – based on the findings from the inspection, the buyer can negotiate the price of the home or property on the closing table. Re-negotiation should be done if there is a major problem with the property that the seller cannot fix.

8.      Funding escrow – this is done when everything else has been agreed upon. This is where the buyer sends the funds to an escrow account where they will hold the money until all the paper work is done. Alternatively, the buyer can just bring a check on the closing.

9.      Final walkthrough – this is to make sure that the seller has fixed everything that need repair or agreed to fix on a later day and everything in the home is in order as per the contract and inspection done.

1.     Close on the house – this is the final step. After everything is good the buyer can close in the deal on the closing table with the seller.

The above steps are commonly used by buyers who use traditional mode of financing as opposed to cash buyers. It is important not to miss any step as it would result in more problems than the buyer might have anticipated.

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