Escrow, Inspections, & Appraisal

The Process, Step-by-Step

Agreement and Deposit.

The purchase process begins with a legally binding agreement between the buyer and the seller.

A few key points to remember:

Document everything. To avoid confusion, it’s best to put all verbal agreements—such as counter-offers or changes—into writing, signed by both parties. We’ll prepare and organize all the necessary paperwork for you and make sure you receive copies of everything.
Follow the timeline. Once your offer is accepted, a schedule will be set that outlines each stage leading up to closing. Staying on track helps the process run smoothly and keeps both sides in compliance with the contract. Throughout this period, we’ll keep you updated so you’ll always know what to expect next.

The Closing Agent

A closing agent—typically an attorney or title company—will be assigned to the transaction. This professional is responsible for:

Holding your deposit securely in escrow.
Reviewing the property’s full title history to confirm it is clear of any claims or issues before closing.
Ensuring any new liens or encumbrances are properly recorded.
It’s important to know that some properties may carry restrictions, such as limits on building, parking, or usage. There can also be easements or encroachments on the title, which affect how the property can be used.

How to Hold Title

Deciding how to hold title is an important step, since it can affect your legal rights, estate planning, and tax obligations—both when you sell the property and in the event of death. Because of these implications, we recommend consulting an attorney or tax professional to determine which option is best for your situation.

Inspections

Once your offer is accepted, you’ll need to schedule an inspection within the timeframe stated in your purchase contract. A licensed home inspector will review the property’s condition, and you may also choose specialists—such as roof, HVAC, or structural inspectors—for additional peace of mind.

For commercial properties, most lenders will also require an environmental audit of the site. We can connect you with qualified inspectors based on your needs.

Depending on inspection results, one of two outcomes typically follows:

Everything checks out, contingencies are lifted, and you move closer to closing.
The inspection uncovers issues, and you may request to renegotiate the contract—often by adjusting the price.

Appraisal and Financing

Staying in close contact with your lender is key. They’ll guide you on what documents are needed to keep your loan approval on track.

If your contract is contingent on financing, a licensed appraiser will assess the property’s value on behalf of the lender. This independent evaluation helps confirm the lender’s investment is sound. Appraisers consider factors such as square footage, construction costs, recent comparable sales, and income potential.

As you approach the two-week mark before closing, check in with your lender to confirm everything is on schedule so there are no last-minute delays.

Association Approval

For properties governed by an association (such as condos or HOAs), your purchase may require formal approval. As soon as your agreement is in place, request the association’s rules, regulations, and application documents from the seller.

Be sure to:

Submit all forms and fees promptly.
Complete the paperwork thoroughly to avoid delays.
Schedule any required interview with the association early.

Most associations issue a certificate of approval that is required before you can move in. Your closing agent will ensure the original approval letter is available at closing so it can be recorded with the deed.

Property Insurance

If you’re financing your purchase, your lender will require property insurance. The amount of coverage is based on the lender’s standards and the property’s purchase price.

You can often save significantly by comparing insurance providers. We’re happy to recommend experienced agents who specialize in different property types to help you find the best coverage at the right price.