Inspections & Appraisals

The Process

A clear, documented process reduces surprises. Keep written records of all agreements, counter-offers, and addenda. We can help draft and maintain copies for every party and keep the timeline on track.

An effective agreement is a legal arrangement between a potential purchaser and the property’s seller. Some important tips to keep in mind to streamline the process:

Initial Agreement and Deposit

The purchase agreement sets timelines and obligations. Meeting deadlines for inspections, financing, and contingencies keeps the transaction moving smoothly.

The Closing Agent

A title company or attorney will act as the escrow (closing) agent. The escrow holds and distributes funds, researches the property title to ensure it’s clear, and records the deed at closing. All contingencies in the Purchase Agreement must be satisfied before escrow closes.

How to Hold Title

Title ownership methods affect transferability, financing, and taxation. Consult an attorney or tax advisor to determine the best ownership structure. We can refer trusted attorneys and tax advisors if you need a recommendation.

Inspections

Schedule a licensed property inspector within the timeframe in the Purchase Agreement. Inspectors report the home’s condition and note issues. You may engage specialists (roof, plumbing, etc.). For commercial purchases, environmental audits or soil tests may be required by lenders. If inspections reveal issues not covered in the agreement, you can request renegotiation. Once satisfied, contingencies are removed.

Appraisals and Lending

Stay in close contact with your lender and submit documents promptly. If financing is required, the lender will order a third-party appraisal to confirm value. Appraisers evaluate value using building costs, square footage, income potential, and comparable sales. Check with your lender about loan approval two weeks before closing.

Association Approval

If the property requires association approval, request all governing documents from the seller and meet any application deadlines included in the Purchase Agreement. The closing agent will record the original approval with the deed at closing.

Property Insurance

Lenders typically require insurance. Homeowners insurance protects against fire, theft, and certain weather damage; landlord insurance is needed if the property will be rented. Confirm coverages required by your lender and your intended use of the property.