Inspections and Appraisals
The Process
The Closing Agent:
Once both parties have signed the contract and all documents, a closing agent, such as a title company or attorney, will hold and distribute funds associated with the transaction until the closing date. They will also research the property's history to ensure the title is clear of encumbrances and that any new encumbrances are added correctly. All contingencies agreed upon in the Purchase Agreement must be met before the escrow can be closed and the property can be officially purchased.
Holding Title:
There are several ways to hold title or ownership of a property, each with different implications for ownership transfer, collateralization, financing, and taxation. We recommend speaking with an attorney or tax advisor to determine the best option for your property. We can connect you with trusted attorneys and tax advisors in the area.
Inspections:
As part of the contingencies outlined in the Purchase Agreement, you will hire a licensed property inspector to assess the property's condition within a specified time frame. You may choose multiple inspectors with expertise in specific areas, such as the roof or plumbing. If you buy a commercial property, you may need to complete an environmental audit or soil test. If the inspections reveal issues with the property that were not specified in the Purchase Agreement, you may request a renegotiation of the terms, typically the price. Once you are satisfied with the inspections and terms of the agreement, the contingencies will be removed.
Appraisals and Lending:
Stay in contact with your lender, and provide any required documents to secure approval for your loan. If the Purchase Agreement is conditional on financing, the lender will require an appraisal by a licensed third-party appraiser to confirm the property's value. Check with your lender two weeks before closing to confirm that the loan will be approved on time.
Association Approval:
Some properties may require approval from an association before the purchase can be completed. If this is the case, request all necessary documents and rules from the seller and meet any requirements for approval within the agreed-upon timeframe. Once accepted, your closing agent will request the original copy of the approval letter to be recorded with the deed in the county records during the closing process.
Property Insurance:
Basic property insurance plans protect against damages to your property, such as fire, theft, and certain weather events. While not required by all states, most mortgage lenders will require insurance coverage. If you plan to live in the property, you will need to purchase homeowners insurance, while landlord insurance is required if you plan to rent out the property as an investment.
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Tips For Buying
Don’t Max Out Your Budget
Just because you’ve been approved for a max amount doesn't mean you should spend it all on the home's sale price. You will want to set some of that aside for closing costs, taxes, and potential home repairs or remodeling.
Get to Know the Area
Make sure the neighborhood works for you and your family - are you close to schools, and is shopping conveniently located?
Don’t Skip the Home Inspection
Inspections are worth their weight in gold and will draw attention to problems you may not otherwise see, giving you peace of mind and letting you make more informed decisions about your purchase.
Get Pre-Approved
Getting pre-approved by a lender lets the seller know you are serious and ready to purchase a home and that you are not just window shopping. Check out our list of recommended lenders here.
Make a List of Deal Breakers
Know what you can live with and cannot live without and also those things that can be taken care of with a simple remodel. If you need a four-bedroom home, don't buy one with two that requires a massive addition which can break your budget.
Look at the Age of Appliances and Other Systems
Appliances are some of the most expensive portions of the home, and you should pay particular attention to their age and whether they have required service.
Other systems to have inspected are your HVAC, water heater, and septic, if applicable. You may be able to get the seller to add a home warranty when buying.
Check For HOA Requirements
Most neighborhoods have HOAs that govern what you can and can't do - be sure you know what the rules are for your neighborhood.
Questions? Contact us!
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Areas We Serve
Don’t see your neighborhood? These are just a few cities and communities we offer management services to. Contact us if you don’t see yours; we are always looking to expand!
- Philadelphia
- Abington
- Bensalem
- Bristol
- Cheltenham
- Feasterville-Trevose
- Fort Washington
- Hatboro
- Holland
- Horsham
- Huntingdon Valley
- Ivyland
- Jenkintown
- Langhorne
- Levittown
- New Hope
- Newtown
- Richboro
- Southampton
- Warminster
- Warrington
- Willow Grove
- Wynnewood
- Yardley