Preliminary Title Report
During the Inspection Contingency Period, the title company is investigating public records on your home. They will send out a Preliminary Title Report to all parties outlining all the information they have on the property, including who currently owns the property; any back taxes or liens that may be due; any easements or encroachments on the property; the existence of Covenants, Conditions and Restrictions (CC&Rs); etc.
If the buyer is getting a loan, the mortgage company might require an appraisal. If a home appraises below or above the agreed upon sales price, further negotiations may be necessary. An appraisal is performed by a third-party professional appraiser who determines the current market value of your home. An appraisal takes into consideration recent sales of like homes, adding or subtracting value based on square footage, lot size, features, etc. There is a lot of information that goes into an appraisal, but the final number will ultimately determine whether the bank is willing to loan the offered sales price amount to the borrower.