Home Buyer’s Guide, Part 5: Escrow, Inspections and Appraisals
The precision phase where details matter and confidence takes shape.
Once your offer is accepted, you enter a stage that is both technical and reassuring. Escrow, inspections and appraisals form the backbone of a safe and well informed real estate purchase. This is where you confirm the home’s condition, protect your investment, and make sure the agreement reflects your goals with absolute clarity.
The Stephen Haw Group guides buyers through this phase with steadiness and transparency. We manage the details while keeping you informed at every milestone so that your closing process feels calm and predictable.
Step 1: The Initial Agreement and Earnest Money Deposit
When both parties sign the purchase agreement, the contract becomes legally binding. It outlines the terms of the sale and sets the timeline for every step that follows.
Two principles guide this stage:
1. Keep Written Records of Everything
Real estate moves quickly, and accuracy protects you. Every verbal understanding, counteroffer, or amendment should be documented in writing and signed by both parties. We prepare and organize all paperwork so you always have clear records.
2. Stick to the Schedule
Your contract includes deadlines for inspections, disclosures, loan milestones and closing. Meeting these dates keeps negotiations smooth and prevents accidental breach of contract. We track each requirement for you and prepare you for what comes next.
Step 2: Selecting the Closing Agent
A title company or real estate attorney will serve as your closing agent. They hold your deposit in escrow and oversee the legal transfer of ownership.
Their responsibilities include:
- Verifying that the title is clear
- Identifying restrictions, easements or encroachments
- Ensuring new encumbrances such as your mortgage are properly recorded
In short, the closing agent confirms that you are receiving exactly the property you agreed to purchase.
Step 3: Deciding How to Hold Title
How you hold title affects estate planning, taxation and future transfer of the property. Options vary, from sole ownership to joint tenancy to trusts. Each carries different legal implications.
For this reason, we recommend speaking with an attorney or tax advisor so your long term goals are supported by the right structure.
Step 4: The Inspection Phase
Once you enter escrow, the inspection timeline begins. You have a set number of days to complete all evaluations.
The General Home Inspection
A licensed inspector reviews the property to assess:
- Structural integrity
- Roof and exterior
- Electrical and plumbing systems
- HVAC performance
- Safety issues or deferred maintenance
Specialized Inspections
If you want deeper clarity, you can order additional inspections for roofing, sewer lines, pests, structural engineering or environmental concerns. These are common in both residential and commercial transactions.
After inspections, one of two outcomes follows:
- You remove contingencies and continue toward closing.
- You request a renegotiation based on findings, often related to price or repair credits.
Both outcomes are normal. We guide you toward the strategy that best protects your interests.
Step 5: Appraisal and Lending
If you are financing the purchase, your lender will order an independent appraisal. The purpose is to confirm that the value of the home supports the loan amount.
Appraisers evaluate:
- Square footage and lot size
- Building quality and condition
- Comparable recent sales
- Market conditions
- Income potential for investment properties
Communication with your lender is important throughout this phase. They may request updated documents or clarifications. Two weeks before closing, we help you verify that all loan conditions are satisfied so funding arrives on time.
Step 6: Association Approval
If the home is part of a homeowners association, approval may be required. To avoid delays, request the association’s rules, regulations and financial documents as soon as the contract is effective.
You will need to:
- Complete and submit the application
- Pay any processing fees
- Schedule required interviews
- Obtain a certificate of approval before closing
Your closing agent will include this approval in the final recorded documents.
Step 7: Securing Property Insurance
Lenders require homeowners insurance before closing. Premiums vary, but buyers often save money by:
- Choosing a higher deductible
- Asking about discounts for alarms, smoke detectors or fire resistant materials
- Insuring only the structure, not the land
We can introduce you to knowledgeable insurance professionals who understand the nuances of the South Bay market.
Stepping Toward Closing With Confidence
Escrow, inspections and appraisals may seem detailed, but each step is designed to protect your investment and clarify your path forward. With an experienced team guiding you, the process becomes far more manageable and ultimately more empowering.
Your next chapter is almost here. The final step is moving in, where the excitement of ownership becomes real and your new life begins.
