Escrow inspections & appraisals
After you accept an offer and both parties have signed the purchase agreement, the transaction enters escrow. During this time, the buyer and seller work to satisfy the terms and conditions of the contract before the sale can be completed.
Escrow
Escrow is a neutral process that helps ensure all contractual obligations are completed before ownership of your home is transferred.
During escrow, the buyer and seller work through inspections, financing, the appraisal, title review, required disclosures, and any other agreed-upon conditions. The closing agent coordinates these activities and prepares the documents needed for closing.
As your real estate broker, we will help monitor important deadlines, communicate with all parties involved, and keep you informed throughout the escrow process.
Property Inspections
Most buyers will arrange for a licensed home inspector to evaluate the property during the inspection period outlined in the purchase agreement.
Depending on the property, buyers may also choose to obtain additional inspections, including:
- Roof
- HVAC
- Plumbing
- Electrical
- Structural or foundation
- Termite and pest
- Pool and spa
- Well and septic
- Survey
- Mold or other environmental concerns
After completing their inspections, the buyer may:
- Accept the property as-is and remove the inspection contingency.
- Request repairs or a seller credit.
- Request modifications to the purchase agreement.
- Exercise any rights available under the inspection contingency, if applicable.
We will review any inspection requests with you, explain your options, and negotiate on your behalf to help you make informed decisions.
Appraisal
If the buyer is obtaining financing, the lender will order an appraisal through a licensed third-party appraiser.
The appraiser determines the property’s market value to help ensure it supports the buyer’s loan amount.
If the appraised value is lower than the agreed-upon purchase price, the buyer and seller may need to renegotiate the terms of the contract or explore other available options.
Contingencies
A contingency is a condition that must be satisfied before the transaction can proceed to closing.
Common contingencies include:
- Home inspection
- Financing approval
- Appraisal
- Title review
- Insurance, when required
Once all contingencies have been satisfied or waived in accordance with the purchase agreement, the transaction moves one step closer to closing.
The Closing Agent
Depending on your transaction, the closing agent may be a title company or a real estate attorney.
The closing agent coordinates the closing process, conducts the title search, prepares the closing documents, and helps facilitate the transfer of ownership.
As part of the title review, the closing agent identifies any recorded liens, easements, restrictions, or other matters affecting the property’s title. Any title issues that need to be addressed are typically resolved before closing whenever possible.
Financing Approval
One of the strongest offers is often from a buyer who has been pre-approved by a reputable lender.
During escrow, the buyer’s lender completes the loan approval process, verifies the buyer’s financial qualifications, and coordinates the appraisal.
We will work closely with the buyer’s lender, the closing agent, and the other real estate professionals involved to help keep your transaction on track for a successful closing.