Inspections & Appraisals

The Process

Initial Agreement and Deposit

A purchase agreement is a legal arrangement between you and the seller. A few tips to keep things moving smoothly:

• Keep written records of everything: verbal agreements, counter-offers, and addendums should all be documented. We can help draft these records and provide copies for both parties.
• Stay on schedule: you and the seller will follow a timeline to complete each stage of the closing process.

The Closing Agent

Once both parties sign the agreement, a title company or attorney will serve as the escrow, or closing agent, and you'll submit your deposit. Escrow acts as a neutral third party, holding and distributing all transaction funds until closing. They'll research the property's full history to confirm the title is free of encumbrances by closing day, and ensure any new encumbrances are properly recorded. All contingencies in the purchase agreement must be satisfied before escrow can close.

How to Hold Title

There are several ways to hold title to a property, each with different implications for ownership transfer, financing, and taxation. We recommend speaking with an attorney or tax advisor to determine the best option for your situation, and we're happy to connect you with trusted professionals in the area.

As part of your purchase agreement's contingencies, you'll schedule a licensed inspector to evaluate the property within an agreed-upon timeframe. Some buyers choose to bring in additional specialists for specific systems, like roofing or plumbing. Commercial buyers may also need an environmental audit or soil test for their lender. If an inspection reveals issues not addressed in the original agreement, you can request a renegotiation, often around price. Once you're satisfied, the related contingencies are removed.

Appraisals and Lending

Stay in close contact with your lender throughout the process so you're ready with any documents needed to finalize your loan. If your purchase is contingent on financing, the lender will require a licensed appraiser to confirm the property's value based on factors like building costs, square footage, and comparable sales. Check in with your lender about two weeks before closing to confirm your loan is on track.

Association Approval

Some properties require HOA or association approval before purchase. If so, request all relevant rules, regulations, and documents from the seller early. Your purchase agreement will outline a timeframe for submitting paperwork or scheduling any required appointments. Once approved, your closing agent will request the official approval letter to be recorded with the deed at closing.

Property Insurance

Basic property insurance protects against damage from fire, theft, and certain weather events. While not every state requires coverage, most mortgage lenders do. Depending on your plans for the property, you'll need homeowners insurance if you're moving in, or landlord insurance if you intend to rent it out.