Inspections & Appraisals

Inspections, Appraisals, and the Closing Process

The Initial Agreement and Deposit

An effective purchase agreement is a legally binding arrangement between buyer and seller. To protect yourself throughout the process:

• Keep written records of everything, including verbal agreements, counter-offers, and addendums — our team can assist with drafting and distributing all written documentation
• Stay on schedule — both parties will follow an agreed-upon timeline to complete each stage of the closing process

The Closing Agent

Once a contract is signed by both parties, either a title company or attorney will serve as the escrow or closing agent. This neutral third party holds and manages all transaction funds until the closing date. They will research the full history of the property to confirm the title is clear of encumbrances and ensure any new encumbrances are correctly recorded. 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, taxation, and estate planning. We strongly recommend consulting with a trusted attorney or tax advisor before deciding. Our team is happy to connect you with experienced legal and financial professionals in the Middle Tennessee area.

Property Inspections

As part of your contingencies, a licensed property inspector will evaluate the condition of the home within the agreed-upon timeframe. You may choose to bring in specialists for specific systems such as roofing, plumbing, or HVAC. For commercial properties, 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 request a renegotiation of terms — typically the purchase price — before removing contingencies.

Appraisals and Loan Approval

Stay in regular contact with your lender throughout this phase. If your Purchase Agreement is conditional upon financing, the lender will require a licensed third-party appraisal to confirm the property's value. Appraisers assess value based on building costs, square footage, operating income, comparable sales, and other factors. Confirm with your lender at least two weeks before closing that your loan will be approved and funded on time.

Association Approval

Certain properties — including gated communities and properties with homeowners associations — may require formal association approval before purchase. If applicable, request all association rules, regulations, and required documents from the seller early in the process. Once approved, your closing agent will obtain the original approval letter for recording with the deed in county records.

Property Insurance

Protecting your investment starts before you close. Most mortgage lenders require property insurance, and the right policy depends on your intended use of the property:

• Homeowners insurance — required if you plan to live in the home
• Landlord insurance — required if you intend to rent the property as an investment

Basic coverage protects against fire, theft, and certain weather events. Our team can help point you toward trusted insurance professionals who understand the Middle Tennessee market.