Inspections & Appraisals

The Process

Initial Agreement and Deposit

A purchase agreement is a legally binding arrangement between the buyer and seller. To keep the process clean and protected:

• Keep written records of everything, including verbal agreements, counter-offers, and addendums. We assist on drafting all written documentation and providing copies to each party in the transaction.
• Stay on schedule. Both parties will work within a defined timeline to complete each stage of the closing process.

The Closing Company

Once both parties have signed the contract, a title company or attorney will serve as the escrow or closing agent, and the buyer deposits their earnest money. The escrow agent is a neutral third party responsible for holding and distributing all transaction funds until closing. They will research the property’s full title history to confirm it is clear of encumbrances and that any new encumbrances are recorded correctly. All contingencies outlined in the Purchase Agreement must be satisfied before escrow closes and ownership transfers.

How To Hold Title

There are several ways to hold title to a property, each with different implications for ownership transfer, financing, tax treatment, and estate planning. We recommend consulting with a licensed attorney or tax advisor before making this decision. We are glad to connect you with trusted professionals in the Treasure Valley who specialize in this area.

Inspections

As part of the Purchase Agreement contingencies, you will schedule a licensed property inspector to evaluate the home within the agreed timeframe. Inspectors assess the condition of the property and identify issues that may affect value or safety. For more complex properties, consider bringing in specialists focused on specific systems such as roofing or plumbing. Commercial purchases may also require an environmental audit or soil test as a condition of financing. If the inspection reveals problems not previously disclosed, you have the right to request a renegotiation of price or terms before removing contingencies.

Appraisals and Lending

Stay in regular contact with your lender throughout the process. If the Purchase Agreement is conditional on financing, the lender will order an appraisal from a licensed, independent appraiser to confirm the property’s value supports the loan. Appraisers evaluate properties based on factors including building costs, square footage, comparable sales, and operating income where applicable. Confirm with your lender at least two weeks before closing that the loan will be approved on time.

Association Approval

Some properties require approval from a homeowners or property association before purchase can be completed. If this applies, request all governing documents, rules, and required paperwork from the seller early in the process. The Purchase Agreement should specify the timeline for submitting applications or completing any required appointments. Once approved, your closing agent will obtain the original approval letter for recording with the deed in the county record.

Property Insurance

Standard property insurance protects against losses from fire, theft, and certain weather events. While most states do not mandate coverage, virtually all mortgage lenders do. Depending on your intended use of the property, you will need either homeowners insurance if you plan to occupy the home, or landlord insurance if you intend to lease it as an investment property.