There are a lot of moving parts to the escrow process. Often times, it's not uncommon for first-time homebuyers to think of all the negative things that can happen. However, as a homebuyer, it's important to know that you can encounter some pleasant surprises.
During a recent transaction, my clients were surprised that the condo they were purchasing had nothing wrong with it. Per the disclosure statement and the home inspector, it was noted that all the appliances were less than a year old, the unit was repainted, and the flooring was brand new.
For some, the home inspection period can be stressful. However, there are times when you can receive some positive news. In the case of my clients, they were happy the condo they were purchasing was recently remodeled.
When you purchase a home with a mortgage, the mortgage lender will order an appraisal. The purpose of the appraisal is to determine the market value of the home. Since you’re getting a loan, the mortgage lender wants to ensure your contract price is actually the market price of the home.
It’s not uncommon for Realtors, especially the buyer agent, to stress out the appraisal. The ideal situation is to have the appraised price match the contract price; this is usually what happens. During a recent transaction, I was informed that my client’s appraisal came in $20,000 over her contract price. This was great news since my client gained instant equity in her new home!
When the condo documents get delivered to the buyer, one of the first documents the buyer agent looks at is the RR105c. This document will disclose if there is any ongoing or upcoming litigation and or assessments. Most buyers just want to confirm that there is no litigation and no assessments. However, it’s important to take a deeper dive into the other condo documents.
When I was helping my client review her condo documents, we decided to speak with the resident manager. During this conversation, the resident manager explained in detailed why the condo was well managed. Receiving this news made my client at ease; she felt great knowing board had the best interest of the homeowners.