Escrow, Inspections, Appraisal

Once your offer has been accepted and your earnest money (deposit) has been placed in escrow, you are typically given a set amount of time to take care of the following items.

• Inspect Property
  It is recommended that you have the property inspected for damage or problems. For our recommended list of inspectors, click here.
• Appraise Property
  Your lender will send an appraiser out to determine the market value of the home. Typically, the home must appraise for the purchase price or more.
• Obtain Financing
  Firm up your mortgage loan details with your lender.
• Conduct Title Search
  The abstract or title company will research the complete history of the property to verify any liens or encumbrances on the property that need to be cleared prior to or at closing.
• Secure Insurance
  Contact your insurance agent to establish a homeowner's policy on the new property. Provide proof of insurance to your lender before closing. Not doing so can delay your close date.
• Consider Home Warranty
  This optional warranty can be offered with a listing as part of the purchase price, or it can also be purchased. Ask your agent for details.
• Review Closing Documents
  Before closing, you will receive closing documents for review. Check to be sure names, addresses, SS#, birthday and dollar amounts are correct. Let your agent and lender know of any errors.

At the successful conclusion of each of these steps, you will either remove the corresponding contingency or request a renegotiation of the terms of the contract (often the price) based on what you have learned. An objective, experienced agent can help you make an informed decision on how to present your new offer to the seller.

Q: What is Escrow? When your offer is accepted by the seller, your earnest money (deposit) is temporarily held in escrow (a holding account) by a third party (usually a realtor or title company). Once the sale is official, your earnest money is disbursed to the seller and the escrow account is closed.

Q: What kind of inspections should I expect? You have the right to a wide variety of property inspections to determine the property's condition and the cost of any impending repairs or upgrades. Inspections may include roof, termite/pest, chimney/fireplace, property boundary survey, well or septic. You are entitled to copies of all inspection reports.