Unfortunately, escrow can fall through for a variety of reasons. The main reason escrow will fail is due to the purchaser not being able to acquire the required funding. Usually this means that their pre-approved mortgage loan has actually been turned down at the last stage, usually because of undisclosed financial situations resulting in their inability to purchase the property. In years past… many buyers were able to push through even with serious financial failings. In fact, as you likely already know… many buyers were able to secure funding without even proving their financial status. However, times have changed and lenders rules are much more stringent.

The second reason that escrow may fall through is because of property inspections. The home inspection may provide a negative indication such as termite infestation, termite damage, or mold. In such cases escrow does not always fall through but it can if both parties are unable to reach an agreement on the final purchase price.

To minimize the risk of your escrow transactions becoming a problem, you should employ an Orange County Realtor from Harbor Realty to ensure that all your i’s are dotted and t’s are crossed . Something as simple as a typing error on a title deed can cause escrow to fall through, employing somebody to take care of these minute details is a good idea.

As we previously discussed, a property inspection will check the structural integrity of the building, it will also check for potential problems such as mold, rot, or termites. Cosmetic issues will not form part of the survey as they are deemed non-threatening to the property.

Of course, not all inspection results will be negative. You may well find positive aspects highlighted, such as certain materials used which make the house easy to maintain, or parts of the construction which are completed to an exceptionally high standard. A survey is not always doom and gloom.

A good survey can also act as a maintenance route map, giving you an overall idea of the state of your home, allowing you to plan repairs and improvements better, by having a good idea of the importance of each.
Buying a property without an inspection would be a foolish act; you need to know that you are purchasing something that is basically sound before you invest your hard earned money.

Inspections will cover a whole range of things; there will no doubt be a full structural survey which will check that the house is basically sound, including all weight bearing beams and joists along with the foundations and roof. If your house has a large amount of wood used as a construction material, then you can expect the buyer to commission a survey for rot and termite infestation as well. Almost all purchasers will want to undertake a mold and moisture survey, especially if you are in a coastal location. Keep these things in mind when you buy your next home as well!

An inspection is not usually intended to make assessments about the cosmetics of a property. If your walls need painting, for example, this will not be indicated in an inspection of your home as it is deemed cosmetic and does not threaten the structure in any way.

Quite often the buyer will be willing to share the full results of the inspection with you, so that you may decide if you wish to make repairs to increase the final sale price of your home.