Escrow inspections & appraisals
THE PROCESS: STEP BY STEP
The Purchase Agreement and Earnest Money Deposit
Once your offer has been accepted and signed by all parties, it becomes a legally binding purchase agreement. At that time, your earnest money deposit will be delivered according to the terms of the contract.
To help ensure a smooth transaction, keep these important tips in mind:
Keep Everything in Writing
Clear communication is essential throughout the transaction. Any changes to the agreement, including counteroffers, amendments, or addenda, should always be made in writing and signed by all parties.
We will prepare the necessary documents, guide you through each step, and ensure you receive copies of all completed paperwork for your records.
Stay on Schedule
Your purchase agreement includes important deadlines for inspections, financing, and other contractual obligations. Meeting these deadlines helps keep your transaction on track and protects your contractual rights.
We will monitor these important dates, keep you informed throughout the process, and help ensure every milestone is completed on time.
The Closing Agent
Depending on your transaction, the closing agent may be a title company or a real estate attorney.
The closing agent is responsible for coordinating the closing process, holding the earnest money deposit in escrow, conducting the title search, preparing the closing documents, and helping facilitate the transfer of ownership.
As part of the title search, the closing agent will review the property’s history to identify any recorded liens, easements, restrictions, or other matters that may affect ownership or the use of the property. Any title issues that need to be addressed will be resolved before closing whenever possible.
How to Hold Title
The way you hold title to your property can have important legal, estate planning, and tax implications.
Because every buyer’s situation is unique, we recommend consulting with a qualified real estate attorney or tax professional to determine the ownership structure that best meets your individual needs and long-term goals.
INSPECTIONS
Once your offer is accepted, you’ll need to schedule a licensed property inspection during the inspection period outlined in your purchase contract.
While a general home inspection is recommended, you may also choose additional specialty inspections depending on the property, including:
- Roof
- HVAC
- Foundation/Structure
- Plumbing
- Electrical
- Pest Inspection (if needed)
For commercial properties, an environmental assessment may also be required by the lender.
After the Inspection
Depending on the inspection results, one of the following typically happens:
Option 1: Move Forward
- All inspection milestones are completed successfully.
- Inspection contingencies are removed.
- The transaction moves one step closer to closing.
Option 2: Renegotiate
If issues are discovered during the inspection, the buyer may:
- Request repairs
- Request a credit toward repairs
- Renegotiate the purchase price or other contract terms
- In some cases, cancel the contract if permitted under the inspection contingency
We’ll review the inspection report with you, explain your options, and help negotiate the best outcome so you can move forward with confidence.
APPRAISAL AND LENDING
Stay in close communication with your lender throughout the financing process. They will let you know if additional documentation is needed to complete your loan approval.
If your purchase is contingent on financing, your lender will order an appraisal through a licensed third-party appraiser. The appraisal determines the property’s fair market value and helps the lender confirm that the home supports the loan amount.
The appraiser evaluates several factors, including:
- Square footage and overall condition
- Comparable recent sales
- Property features and upgrades
- Location and market conditions
As you approach closing, stay in regular contact with your lender to ensure all loan conditions have been satisfied and your financing remains on schedule.
We’ll work closely with your lender throughout the process to help keep your transaction on track for a smooth closing.
ASSOCIATION APPROVAL
If you’re purchasing a property governed by a Homeowners Association (HOA) or Condominium Association (COA), you may be required to obtain association approval before closing.
During this process, you should:
- Review the association’s rules, regulations, and governing documents.
- Complete and submit any required applications.
- Pay any applicable processing fees.
- Schedule an interview, if required by the association.
Many associations require a Certificate of Approval before closing or move-in. Your closing agent will ensure the necessary documentation is included with your closing paperwork.
We’ll help you stay on top of deadlines and guide you through the association approval process from start to finish.
PROPERTY INSURANCE
If you’re financing your home purchase, your lender will require you to obtain homeowners insurance before closing. The amount of coverage required will depend on your lender’s guidelines and the value of the property.
Shopping around and comparing insurance providers can help you find the coverage that best fits your needs and budget while ensuring your new home is properly protected.
Ways to Manage Your Insurance Costs
- Compare quotes from multiple insurance providers to find the best combination of coverage, service, and price.
- Discuss deductible options with your insurance agent. If you’re working within a budget, your agent can explain how different deductible amounts may affect your premium and help you choose the option that’s right for you.
- Ask about available discounts. Many insurance companies offer discounts based on factors such as:
- Monitored security systems
- Smoke and carbon monoxide detectors
- Impact-resistant roofing or storm protection
- Bundling your home and auto insurance
- Loyalty or claim-free discounts
- Review your coverage carefully. Make sure your policy meets your lender’s requirements and provides the protection that’s appropriate for your specific situation.
We’re Here to Help
If you need homeowners insurance, we’re happy to recommend experienced, knowledgeable insurance professionals who can help you compare coverage options and answer your questions.
Please note that insurance coverage, premiums, deductibles, and eligibility vary by provider. We recommend consulting a licensed insurance professional to determine the coverage that’s appropriate for your individual needs.