Escrow Inspections and Appraisal

Congratulations, your offer was accepted!

After your offer has been accepted, the process of closing the real estate contract begins. Here are the next steps to expect:

1. The Initial Agreement & Deposit: An effective agreement is reached between you, the buyer, and the seller. Keeping written records of all the paperwork and transactions is important. Your real estate agent will assist you in drafting the necessary documents and ensure that you have copies of everything. Both you and the seller will adhere to a timeline that marks each stage of the closing process.
2. The Closing Agent: An attorney is typically chosen as the closing agent. The attorney will hold the deposit in escrow and conduct a thorough title search to ensure that the property’s title is clear of any encumbrances or restrictions. Any existing easements, encroachments, or restrictions on the property will be identified and addressed.
3. How to Hold Title: You may consult with an attorney or tax advisor to determine the best way to hold the title of the property. Different methods of holding title have legal, estate, and tax implications, especially in the case of selling the property or upon the title holder’s death.
4. Inspections: You will arrange for a licensed property inspector to inspect the property within the agreed-upon timeframe stated in the contract. The inspector will assess the condition of the property and identify any potential issues. Your real estate agent can recommend reliable inspectors for this purpose.
5. Appraisal and Lending: If your agreement is conditional upon financing, your lender will communicate with you throughout the process to request additional documents and approve your loan application. The property will also be appraised by a licensed appraiser to determine its value for the lending institution. This ensures that the lender’s investment in the property is accurate. Keep close communication with your lender, especially within two weeks of closing, to ensure a smooth and timely loan approval process.
6. Property Insurance: If you are obtaining a loan, your lender will require you to purchase a certain amount of insurance on the property. The coverage amount will depend on the lending institution and the purchase price of the property.

Throughout the process, Peter Cagnassola will keep you updated and guide you through each step, ensuring that all requirements are met on time. It’s important to maintain open communication with your agent, lender, and attorney to address any questions or concerns that may arise.