Inspections & Appraisals

The Process

Initial agreement and deposit

A purchase agreement is a legal contract between buyer and seller. Keep written records of all communications, counter-offers, and addenda. Adhere to timelines to ensure each stage of closing proceeds smoothly.

The closing agent

A title company or attorney will act as escrow (closing agent) to hold and disburse funds and to verify the title is clear of encumbrances. All contingencies in the Purchase Agreement must be satisfied before escrow can close.

How to hold title

There are different ways to hold title, each with implications for transfer, financing, and taxes. Consult an attorney or tax advisor to choose the best method. We can connect you with trusted local professionals.

Inspections

Schedule a licensed property inspector within the agreed timeframe. Inspectors assess the home’s condition and identify issues—specialty inspections (roof, plumbing, septic) are often recommended. For commercial purchases, environmental audits or soil tests may be required. If inspections reveal undisclosed problems, you can request renegotiation. Once satisfied, contingencies are removed.

Appraisals and lending

Stay in close contact with your lender to provide documents promptly. If financing is required, the lender will order a third-party appraisal to confirm the property’s market value. Appraisers evaluate value based on factors such as comparable sales, square footage, and replacement costs. Confirm loan approval with your lender about two weeks before closing.

Association approval

If the property requires association approval, request rules and required documents from the seller. The Purchase Agreement will set a timeframe for submitting paperwork. Once the association approves, provide the original approval letter so it can be recorded with the deed.

Property insurance

Lenders typically require property insurance. Homeowners insurance protects against fire, theft, and certain weather events; landlord insurance is required for rental properties.