Escrow Inspections & Appraisals
ESCROW INSPECTIONS & APPRAISALS
The Process, Step-by-Step
The Initial Agreement and Deposit
A solid agreement is a legal understanding between a potential buyer and the property seller.
Some important tips to keep in mind to streamline the process:
Make sure to keep written records of all agreements. It's helpful to transcribe verbal agreements, including counter-offers and addendums, into written agreements signed by both parties. We'll help you draft all the necessary paperwork for your purchase and ensure you have copies of everything.
After selecting your offer, you and the seller will receive a timeline marking every stage in the process of closing the real estate contract. Meeting these requirements on time ensures a smoother negotiation process, preventing either party from breaching their agreements. We'll keep you constantly updated throughout the process so you're always prepared for the next step.
The Closing Agent
When it comes to closing, a title company or attorney will be selected as the closing agent. Their role involves holding the deposit in escrow and conducting thorough research on the property's recorded history. This process ensures that the title is clear of any encumbrances by the closing date, with new encumbrances correctly added to the title. Some properties may have restrictions, like building or parking limitations, as well as recorded easements and encroachments that restrict property use.
How to Hold Title
Consider consulting with an attorney or tax advisor regarding the best way to hold title. Different methods of holding title have varying legal, estate, and tax implications, particularly when it comes to selling the property or in the event of the title holder's death.
Inspections
After your offer is accepted, it's important to have a licensed property inspector examine the property within the agreed-upon timeframe in the contract. You can choose to have different inspectors for various areas like the roof, HVAC, or structure for professional opinions. For commercial properties, an environmental audit may be required by the lending institution. We can provide recommendations for various inspectors to assist you.
Depending on the results of these inspections, one of two scenarios may unfold:
1. Either each milestone is successfully closed and the contingencies will be removed, bringing you one step closer to the close, or
2. The buyer, after reviewing the property and the papers, requests a renegotiation of the terms of contract (usually the price).
Appraisal and Lending
Staying in close touch with your lender is key. They'll let you know if more documents are needed to approve your loan and secure the funding. If financing is a condition, a licensed appraiser will assess the property's value for the lending institution. This step ensures the accuracy of their investment. Appraisers use various factors like square footage and recent sales to determine value. As you near closing, check in with your lender to ensure everything is on track for a smooth and timely process.
Property Insurance
When obtaining a loan, your lender will require you to purchase a specific amount of insurance on the property. The cost will vary depending on the lending institution and the property's purchase price. Shopping around for insurance can potentially save you hundreds of dollars annually on homeowners insurance. Here are some tips to help you save money:
Compare Quotes: Obtain quotes from multiple insurance providers to find the best rate.
Bundle Policies: Consider bundling your home and auto insurance with the same provider for a discount.
Increase Deductibles: A higher deductible can lower your premium, but make sure you can afford the out-of-pocket costs if you need to file a claim.
Improve Home Security: Installing a security system or smoke detectors can reduce your insurance premium.
Maintain a Good Credit Score: Insurers often use credit scores to determine rates, so maintaining a good credit score can help lower your premium.
We're here to help! We can recommend experienced and knowledgeable insurance agents for every type of property.
