Inspections & Appraisals

The Process

Buying property is a big decision, and big decisions get better outcomes when emotion stays out of the equation. Here's what to expect at every stage, backed by clear guidance and local Utah expertise.

Initial Agreement and Deposit

An effective agreement is a legal arrangement between a potential purchaser and the property's seller. A few tips to keep things clear and on track:

• Document everything in writing. Verbal agreements, counter-offers, and addendums should always be put on paper. We help draft these records and provide copies to every party involved, so there's no confusion later.
• Stick to the schedule. You and the seller will receive a timeline for completing every stage of the closing contract. Meeting deadlines protects your position and keeps the deal moving.

The Closing Agent

Once both parties sign the contract, a title company or attorney steps in as the escrow, or closing agent, and your deposit is placed. This neutral third party holds, receives, and distributes all funds tied to the transaction until closing day. They research the property's full history to confirm the title is clear of encumbrances, and that any new encumbrances are recorded correctly. Every contingency in the Purchase Agreement must be satisfied before escrow closes and the purchase becomes official.

How to Hold Title

There are several ways to hold title, and each one carries different implications for ownership transfer, financing, taxation, and collateralization. This is a decision best made with data and expert input, not guesswork. We recommend speaking with an attorney or tax advisor to determine the best structure for your goals, and we're happy to connect you with trusted professionals in the area.

Property Inspections

As outlined in the Purchase Agreement, you'll schedule a licensed property inspector to evaluate the home within an agreed-upon timeframe. Inspectors identify the property's true condition and flag any issues before they become your problem. Specialized inspectors, such as roof or plumbing experts, may be worth bringing in depending on the property. Commercial purchases may also require an environmental audit or soil test for the lending institution. If inspections uncover issues not addressed in the original agreement, you can renegotiate terms, most often price, before moving forward. Once you're satisfied, contingencies are removed and the deal progresses.

Appraisals and Lending

Stay in close contact with your lender throughout this stage so you're never caught off guard by a document request. If your Purchase Agreement is contingent on financing, the lender will require a home appraisal from a third-party licensed appraiser. Appraisers use hard data, including building costs, square footage, and operating income, to confirm your investment holds real, accurate value. Check in with your lender about two weeks before closing to confirm your loan is on track for approval.

Association Approval

Some properties require an association's certificate of approval before purchase. If that applies to you, request all rules, regulations, and required documents from the seller early. The Purchase Agreement will outline a timeframe for submitting paperwork or scheduling any necessary appointments. Once approved, your closing agent will request the original approval letter so it can be recorded with the deed in county records at closing.

Property Insurance

Basic property insurance protects your investment against fire, theft, and certain weather-related damage. While most states don't require coverage, mortgage lenders almost always do. The right policy depends on your plans for the property: homeowners insurance if you intend to live there, or landlord insurance if you're holding it as a rental investment. Either way, protecting the asset protects the return.