Inspections & Appraisals

The Process

Initial Agreement and Deposit

A signed purchase agreement is a binding contract between buyer and seller. A few tips to keep things on track:

• Document everything in writing, verbal agreements, counteroffers, and addendums included. We can help draft and distribute these records.
• Stay on top of your closing timeline, since each stage of the transaction runs on a schedule.

The Closing Agent

Once the contract is signed, a title company or attorney will serve as the neutral escrow agent, holding and managing funds until closing. They'll also verify the property's title is clear of liens or encumbrances. Every contingency in the purchase agreement must be satisfied before escrow can close.

How to Hold Title

There are multiple ways to hold ownership of a property, each with different implications for taxes, financing, and transferring ownership down the road. We recommend speaking with an attorney or tax advisor to determine what's right for your situation, and we're glad to make an introduction.

Inspections

Within the agreed timeframe, you'll schedule a licensed inspector to evaluate the property's condition. Depending on the property, you may want specialists for specific systems like roofing or plumbing, and commercial buyers may need an environmental or soil assessment. If the inspection turns up issues not already addressed in the agreement, you can request a renegotiation, often on price, before contingencies are lifted.

Appraisals and Lending

Stay in close contact with your lender throughout underwriting. If your offer is contingent on financing, your lender will require a third-party appraisal to confirm the property's value based on factors like square footage, condition, and comparable sales. Check in with your lender roughly two weeks before closing to confirm everything is on track.

Association Approval

Some communities require association approval before a sale can close. If so, request all governing documents and rules from the seller early, and build the required time into your purchase agreement. Once approved, your closing agent will record the approval alongside the deed.

Property Insurance

Even where it isn't legally required, most lenders require insurance coverage for fire, theft, and weather-related damage. You'll need homeowners insurance if you're moving in, or landlord insurance if you plan to rent the property out.