INSPECTIONS & APPRAISALS

The Process

Initial Agreement and Deposit

An effective agreement is a legal arrangement between buyer and seller. To keep the process clean and protected:

• Keep written records of everything, including verbal agreements, counter-offers, and addendums. We assist in drafting all written records and provide copies for each party.
• Respect the timeline. Both you and the seller will work within a defined schedule to complete every stage of the closing process.

The Closing Agent

Once both parties have signed the contract, a title company or attorney steps in as the escrow or closing agent to hold, receive, and distribute all funds associated with the transaction until closing. This neutral third party will research the full history of the property to confirm the title is clear of encumbrances by the closing date and that any new encumbrances are added correctly. All contingencies outlined in the Purchase Agreement must be satisfied before escrow can close and ownership can transfer.

How to Hold Title

There are several ways to hold title to a property, and each carries different implications for ownership transfer, financing, collateralization, and taxation. We recommend consulting with a trusted attorney or tax advisor to determine the best approach for your situation. We are glad to connect you with experienced professionals in the Virginia Beach area.

Inspections

As part of your Purchase Agreement contingencies, you will schedule a licensed property inspector within the agreed-upon timeframe. Inspectors assess the condition of the property and identify existing or potential problems. For targeted concerns, you may bring in specialists focused on specific areas such as roofing or plumbing. If you are purchasing a commercial property, an environmental audit or soil test may be required by the lender. If inspections reveal issues not addressed in the purchase agreement, you have the right to renegotiate the terms. Once you are satisfied, contingencies are removed and the process moves forward.

Appraisals and Lending

Stay in close contact with your lender throughout the process so you can respond quickly when new documents are needed. If the Purchase Agreement is contingent on financing, the lender will require a home appraisal from a licensed third-party appraiser who will confirm the property's value based on factors including building costs, square footage, and operating income. Check in with your lender two weeks before closing to confirm the loan will be approved on time and the deal stays on track.

Association Approval

Some properties require association approval before purchase. If yours does, request all rules, regulations, and required documents from the seller early. You and the seller will agree on a timeline for submitting paperwork or completing any required appointments. Once approved, your closing agent will obtain the original approval letter to be recorded with the deed in the county record books at closing.

Property Insurance

Standard property insurance protects your asset from damage caused by fire, theft, and certain weather events. While most states do not mandate coverage, most mortgage lenders do. Depending on how you plan to use the property, you will need either homeowners insurance if you are occupying the home or landlord insurance if you are renting it out as an investment. Protecting the asset starts the moment you take ownership.