2. The Appraisal Phase This can be the most stressful phase because it will determine if you got the price you wanted for your home if you are the seller. If you are purchasing a home, this phase will determine the value of your home. Three alternatives exist if the appraisal is valued lower than the accepted offer. 1) The seller can lower the price to the appraised value, 2) The buyer can pay more than the appraised value, or 3) The escrow will be canceled. If this option is taken, a cancellation addendum is written, and both the seller and the buyer must sign the cancellation.. 3. The Escrow Phase Once the offer is accepted escrow is opened. Before I get into this phase I want to explain: What is an Escrow? An Escrow is a neutral third party whose job is to carry out the agreement ( the contract) between the seller and the buyer in the accepted offer. In other words, it is important to make sure the seller and buyer do what they agreed to do in the accepted offer. The Escrow Phase is simple. One of the agents will call escrow or send the escrow officer the executed contract ( all parties have signed the contract). The Escrow Officer will draw up the Escrow Instructions. Then, within 10 business days, escrow instructions and the Preliminary Title Report will be sent to the seller and the buyer. The buyer will have 5 business days to accept or reject the Preliminary Title Report. If the buyer has concerns, the seller will have 5 businesses to correct such concerns by the buyer. 4. The Home Inspections Phase Sometimes, it is known as the "Deal Killer" because the buyer has the right to a home inspection per the contract if the buyer selects this option. A buyer has a right to know what they are buying. They will hire a licensed home inspector whose job is to
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