determine the value of the home you are purchasing. If the appraisal is valued lower than the accepted offer, there are three alternatives. 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 then a cancellation addendum is written and both the seller and the buyer must sign. 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, making 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 Some times 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 find something! I can tell you from many years of experience they will find something. There are no perfect homes. They will have a set number of days to complete the inspection. Then the buyer must submit a Request for Repairs within the Due Diligence period agreed upon in the offer. The seller can accept or reject any or all of the requests. This is where negotiations are
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