Inspections & Appraisals

The Process

Initial Agreement and Deposit

A signed purchase agreement is a legally binding arrangement between you and the seller. Keep the following in mind as the process moves forward:

• Keep written records of everything, including verbal agreements, counter-offers, and any addendums. We assist with drafting and provide copies for all parties.
• Stay on schedule. Both parties will work within a defined timeline to complete each stage of the closing process. Missing deadlines can delay or derail the transaction.

The Closing Agent

Once both parties have signed the contract, a title company or attorney steps in as the closing agent and holds your deposit in escrow. The escrow agent is a neutral third party responsible for holding and distributing all funds until closing. They will research the full history of the title to confirm it is clear of encumbrances and that any new encumbrances are recorded correctly. All contingencies in the Purchase Agreement must be satisfied before escrow closes and ownership transfers to you.

How to Hold Title

There are several ways to hold title to a property, and each carries different implications for ownership transfer, financing, taxation, and estate planning. We recommend speaking with a qualified attorney or tax advisor before making this decision. We are happy to connect you with trusted professionals in this area.

Inspections are a required contingency in most Purchase Agreements. You will schedule a licensed inspector to evaluate the property within the timeframe both parties agreed to. Inspectors assess the overall condition of the property and identify issues that may not be visible to the untrained eye. You may choose to bring in specialists for specific systems such as roofing or plumbing. If you are purchasing a commercial property, your lender may require an environmental audit or soil test. If inspections reveal problems not disclosed in the Purchase Agreement, you have the right to request a renegotiation of the terms. Once you are satisfied, contingencies are removed and the process moves toward closing.

Appraisals and Lending

Stay in regular contact with your lender throughout the process. If your Purchase Agreement is contingent on financing, your lender will order a third party appraisal to confirm the property’s market value. Appraisers evaluate factors including building costs, square footage, and income potential where applicable. Confirm with your lender at least two weeks before the scheduled closing date that your loan will be approved on time.

Association Approval

Some properties require approval from a homeowners or community association before purchase can be completed. If yours does, request all governing documents, rules, and required forms from the seller as early as possible. The Purchase Agreement will define the timeline for submitting paperwork and completing any required appointments. Once approved, your closing agent will obtain the original approval letter so it can be recorded with the deed at closing.

Property Insurance

Standard property insurance protects against losses from fire, theft, and certain weather events. Most mortgage lenders require coverage regardless of whether your state mandates it. The type of coverage you need depends on your intended use. If you plan to occupy the home, you will need homeowners insurance. If you plan to rent it out, landlord insurance is the appropriate policy.