Other Important Deadlines
While the Inspection Objection & Resolution Deadline can be a big hurdle, it's not the only important deadline in the Colorado real estate contract that you need to understand. Once the inspection issues have been resolved the buyer's lender will order an appraisal to verify the value of your home. The appraisal used to be a formality for most purchase transactions in the past, however with guideline changes, appraisals can often cause problems. Changes in the appraisal process has unfortunately decreased the overall quality of appraisers in the marketplace and have made it more difficult for the good appraisers to do their work. However, some mortgage lenders have found solutions to work with the top, local appraisers.
The appraiser will inspect your home briefly, which usually takes about 30-60 minutes, to verify square footage, condition of your home, and overall quality of construction. If the home doesn't appraise at the sales price or higher, the buyer can terminate the contract, negotiate a lower price, or if they have the ability they can bring additional down payment to cover the difference. The appraiser may also require repairs to be completed to the home to bring it the minimum property standards of the lender. Cracking paint and missing handrails are two common repairs that are discovered during the appraisal process.
Another important deadline in the Colorado real estate contract is the Loan Objection deadline. The Loan Objection deadline is typically the last opportunity for the buyer to terminate the contract and retain their earnest money. This deadline gives the buyer ALL the power in the transaction, and as a seller you should negotiate for this deadline to be sooner than later. Many real estate agents in Colorado believe the buyer must obtain final loan approval by this deadline and if they do the buyer must perform. However, the buyer can terminate the contract based on Loan Objection if the loan terms are not acceptable to them. Therefore, they can really terminate the contract for any reason under the disguise they are not happy with their loan terms.
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