Inspections & Appraisals

The Process

Initial Agreement and Deposit

A purchase agreement is a binding legal arrangement between buyer and seller. Keep written records of all offers, counter-offers, and addendums. Adhere to timelines in the contract to keep the transaction on track.

The Closing Agent

A title company or attorney typically acts as escrow (the closing agent). They hold and disburse funds, verify the property’s title is clear of encumbrances, and ensure contingencies are met before closing.

Holding title

There are multiple ways to hold titles, each with different implications for transfer, financing, and taxes. Consult an attorney or tax advisor to select the best option for your situation. We can refer trusted legal and tax professionals.

Inspections

Schedule a licensed inspector within the agreed contingency period. Inspectors report on the property’s condition; you may hire specialists for roofs, plumbing, or HVAC. For commercial purchases, additional audits (such as environmental or soil tests) may be required. If inspections reveal material issues, you can request renegotiation or remedies before removing contingencies.

Appraisals and Lending

Stay in touch with your lender for document requests. If your purchase is contingent on financing, the lender will order an appraisal to confirm the property’s value. Appraisers compare building costs, square footage, income potential, and more. Confirm loan approval at least two weeks before closing.

Association Approval

If the property is governed by an association, request the bylaws and required paperwork from the seller. The Purchase Agreement should allow time to submit association documents and obtain approval. Your closing agent will record any approval letters with the deed at closing.

Property Insurance

Most lenders require insurance. Homeowner policies cover fire, theft, and certain weather damage; landlord policies are required if you plan to rent the property. Choose appropriate coverage based on your intended use.