Escrow, Inspections and Appraisals

The Process, Step-by-Step

The Initial Agreement and Deposit

An effective agreement is a legal arrangement between a potential purchaser and the property’s seller.

Some important tips to keep in mind to streamline the process:

• It is important to keep copies of everything so that you maintain records of all written agreements such as counter-offers and addendums.We will assist you in drafting all the paperwork for your purchase and make sure that you have copies of everything.
• Stick to the schedule. Now that there is an agreement, both parties will be given a timeline to mark every stage in the process of closing the real estate transaction. Meeting requirements on time ensures the process runs smoother so that each party involved is not in breach of their agreements. We will keep you updated throughout the process, so you will always be prepared for the next step.

Open Escrow

Escrow is a procedure in which a third party acts as a stakeholder for both the buyer and the seller, carrying out both parties’ instructions and assuming responsibility for handling all the paperwork and distribution of funds
Upon receipt of an accepted purchase agreement signed by all parties, I will open escrow on your behalf. At this time your earnest money will be deposited. The escrow company will receive, hold and disburse all funds associated with your transaction.

Inspections

Once your offer is accepted by the seller , you will be allotted a specified amount of time per your purchase agreement to have a licensed Home inspector perform an inspection of the property. , and satisfy any other contingencies to which your purchase is subject. The inspector will review the property and provide a report to include information on structure, electrical, HAC, roofing, and other items to help you in the decision making process.

Appraisal and Lending

It is imperative that you keep in close communication with your lender, who will let you know when additional documents are needed to approve your loan application and fund your loan. If the agreement is conditional upon financing, then the property will be appraised by a licensed appraiser to determine the value for the lending institution, via a third party. This is done so that the lending institution can confirm their investment in your property is accurate. Appraisers are specialists in determining the value of properties, based on a combination of square footage measurements, building costs, recent sales of comparable properties, operating income, etc. When you are within two weeks of closing, double check with your lender to be sure the loan will go through smoothly and on time.

Property Insurance

If you are obtaining a loan, you will be required by your lender to purchase homeowners insurance on the property. The value will depend on the lending institution and the purchase price of the property. You may be able to save hundreds of dollars a year on homeowners insurance by shopping around for insurance. You can also save money with these tips.

• Consider a higher deductible. Increasing your deductible by just a few hundred dollars can make a big difference in your premium.
• Ask your insurance agent about discounts. You may be able get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire-retardant roofing materials. Persons over 55 years of age or long-term customers may also be offered discounts.
• Insure your house NOT the land under it. After a disaster, the land is still there. If you do not subtract the value of the land when deciding how much homeowner’s insurance to buy, you will pay more than you should.

We will be happy to recommend experienced knowledgeable insurance agents for every property type.