Frequently Asked Questions About Selling Your Home
What’s the Deposit Check for?
The deposit check is the buyers good faith that they are interested in buying the sellers home as long as the buyers due diligence is satisfactory to the buyer within the buyers contingency or timeframe agreed upon at the time of acceptance or buyer and seller agreeing to work with each other.
Who’s the Escrow Company?
Escrow is a neutral third party that will hold the buyers deposit once escrow is opened and the process is started. Traditionally the seller picks the escrow company, but its negotiable.
Who’s the Title Company?
Title is the company that insures that the title on the home you purchase is free and clear of any liens from the previous owners after escrow is closed and the property is transferred to the new owner.
What’s a Contingency period?
This is the period in which a buyer can decide not to purchase the sellers home without having their deposit at risk?
What kinds of contingencies are typical in a purchase of a home?
The common contingencies in a sale are the home inspection, appraisal, and loan.
- The home inspection or due diligence period of a sale allows the buyers to thoroughly investigate the home with an inspector. It allows the buyer to do whatever homework the buyer needs to do to feel comfortable and confident with what they are buying.
- The appraisal contingency allows the buyer to get an appraisal from a certified appraiser that makes sure the home is worth the price the buyer offered. The appraisal also helps verify the home is the size represented by the seller.
- The loan contingency allow the buyer to bring all final necessary documentation to the lender in order to fully approve the buyer’s loan to purchase the home. Most buyers start their search with a pre-approval from a lender.