Inspections & Appraisals

The Process

Initial Agreement and Deposit

A signed agreement is a legal contract between buyer and seller. To keep the process smooth:

• Keep written records of all agreements, counter-offers, and addendums. We assist in drafting and distributing clear copies.
• Adhere to the agreed timeline. Both parties will be given deadlines to complete each step of the closing process.

The Closing Agent

A title company or attorney typically acts as the escrow or closing agent. This neutral party holds funds, verifies title history, ensures encumbrances are handled correctly, and coordinates the closing. All contingencies in the Purchase Agreement must be satisfied before escrow closes.

How to Hold Title

There are multiple ways to hold title, each with different implications for transfer, financing, and taxation. Consult an attorney or tax advisor to determine the best option for your situation. We can connect you with trusted attorneys and tax advisors in the area.

Inspections

Schedule a licensed property inspector within the agreed timeframe. Inspectors evaluate overall condition and can recommend specialists (roof, plumbing, etc.) if needed. For commercial purchases, environmental or soil tests may be required. If inspections reveal issues not addressed in the agreement, you can request renegotiation—commonly on price or repairs. Once satisfied, contingencies are removed.

Appraisals and Lending

Stay in close contact with your lender for required documents and timelines. If financing is conditional, the lender will order a third-party appraisal to confirm the property’s value. Appraisers consider construction costs, square footage, income potential, and comparable sales. Confirm loan approval two weeks before closing to avoid last-minute delays.

Association Approval

Some properties require an association’s approval. Request all rules and documents from the seller and adhere to the timeframe specified in the Purchase Agreement. Once approved, the closing agent will record the approval with the deed.

Property Insurance

Most lenders require property insurance. Homeowners insurance covers owner-occupied properties, while landlord insurance is required for rental investments. Policies protect against fire, theft, and certain weather-related damages. Make sure you know your potential insurance costs early on in your process.