Escrow, Inspections & Appraisals – What to Expect

Once your offer is accepted, we move into the escrow phase—an important step that gets us closer to closing day. Here’s what you need to know:

Making an Offer

When we submit an offer, we’ll include key terms such as:

• Purchase price – Based on market data and our negotiation strategy
• Closing date – Typically 30-45 days, but this varies depending on financing and the seller’s needs
• Earnest Money Deposit (EMD) – A good-faith deposit held by my brokerage until closing
• Contingencies – These protect you and may include inspections, financing, and appraisal
• Any concessions – Such as seller-paid closing costs or repair requests

If the seller accepts, we move forward with inspections and financing. If an issue arises with inspections or appraisal, we can negotiate or, if necessary, release the home and have your EMD refunded. However, if all contingencies are cleared and you decide to back out, the EMD typically goes to the seller—unless there are extenuating circumstances.

The Role of the Title Agency

In Michigan, we use a title agency to handle the closing process. They will:

• Perform a title search to ensure a clear ownership history
• Issue title insurance to protect against any future claims on the property

I’ll make sure you have a clear understanding of this process and work with a trusted title agency to ensure everything runs smoothly.

Home Inspections

I always recommend a general home inspection and sewer scope to assess major systems and potential concerns. From there, we can determine if additional specialized inspections (roof, HVAC, foundation, etc.) are needed. If serious issues arise, we can:

• Request repairs or credits from the seller
• Renegotiate the purchase price
• Walk away and have your EMD refunded

This is one of the most critical parts of the home-buying process, and I’ll be here to guide you every step of the way.

Appraisal & Loan Approval

If you’re financing your home, your lender will typically require an appraisal by a licensed professional to determine the property’s value. This ensures the home is worth what the bank is lending you. If the appraisal comes in lower than the purchase price, we may need to:

• Renegotiate with the seller
• Cover the difference in cash
• Challenge the appraisal (if warranted)

Staying in close communication with your lender throughout this process is key to avoiding last-minute surprises. I’ll also be tracking everything behind the scenes to ensure we stay on schedule.

Homeowners Insurance

Lenders require homeowners insurance, and I recommend shopping around for the best rates. Consider:

• Increasing your deductible to lower your premium
• Asking about discounts for security features (smoke detectors, alarms, storm shutters, etc.)
• Insuring only your home structure—not the land—to avoid overpaying

I can connect you with trusted insurance agents who will help you find the right coverage for your home.