Why is Home inspection a critical process of any Escrow Process?
Did you know the escrow process acts like a neutral third party in the real estate industry? The escrow process begins when the sellers and buyers enter into a mutual agreement. Escrow holds funds, documents, and agreements until all contractual obligations are met. The escrow company or agent holds the buyer’s earnest money, the signed contract, and all critical documents until conditions like inspection and financing are fully met. This secure process prevents fraud and ensures buyers feel confident they are purchasing a well-maintained home.
Therefore, the escrow process has a unique value in the US real estate market. People feel comfortable investing in such properties, knowing they will receive a home that meets their requirements.
The critical step within the escrow process is a home inspection, which is itself a comprehensive process performed by a professional home inspector. Home inspection companies like The BrickKicker can play a vital role in such assessments. They inspect the home thoroughly and identify all hidden problems the naked eye cannot see.
The main components covered in the home inspection are the condition of the roof, electrical system, plumbing system, ventilation system, and checking for the presence of mold.
In this blog, we will discuss the importance of the home inspection as a critical part of the escrow process.
Importance of home inspection during escrow
Home inspection is a challenging task requiring a professional who can identify all the hidden problems the naked eye cannot see. Whether you are a seller or buyer, getting a home inspection before purchasing or enlisting the property in the market is necessary. The main focus of the home inspector is the condition of the roof, insulation of walls, and electrical and plumbing systems. They make sure that everything in a home is in good condition.
Additionally, they pay special attention to identifying the presence of mold and locating leakages. The humidity in the US provides the ideal environment for mold growth. Therefore, home inspectors deeply inspect kitchens, washrooms, attics, and crawl spaces for any signs of mold or moisture.
The presence of mold can lead to harmful flare-ups of diseases like asthma, respiratory issues, throat rashes, and skin allergies. Therefore, identifying the presence of mold is a necessary part of home inspections, making your living space healthy and safe.
Crucial Checks for a home inspection
A home inspector cannot miss these crucial things in home inspections:
Checking the Roof
The weather in the US directly affects a home’s overall structure, causing the roof to develop cracks. Home inspectors ensure that the roof is crack-free and that the gutters are well-maintained and cleaned. Clean gutters help rainwater flow properly and prevent water from seeping into the roof or walls.
Electrical system
The electrical system is a vital part of a home and requires special care and attention. A home inspector checks the electrical components, connections, and wire insulation. A healthy electrical system helps prevent major problems in the future.
Plumbing system
Inspection of the plumbing system can prevent damage to your home’s structure. During the home inspection, the home inspector thoroughly checks the water pipes to look for leakages. Water leakage can provide the ideal environment for mold growth and damage your house’s structural integrity.
Ventilation system
Fresh air improves the indoor air quality of a home and removes pollutants. Therefore, a home inspector makes sure that the ventilation system is working properly and letting fresh air enter the home.
How the Escrow process works
In the real estate industry, escrow acts as a neutral party that temporarily holds all important documents until the mutual understanding of sellers and buyers completes the final transaction. Escrow protects both parties from potential fraud or any mis-commitment. The escrow agent ensures that the terms and conditions are properly followed up before transferring home ownership.
Key Milestones of an Escrow Process
The escrow process has various key milestones that govern everything from the initial to the last transaction.
Accepting an offer
This process starts when both parties are on the same page and agree to the selling and purchasing process. The buyer deposits their hard-earned money into the escrow account, and the seller accepts the buyer’s offer. Depositing a buyer’s money indicates their interest in the deal.
Inspections
This is a crucial step in the escrow process. A professional home inspector identifies the problems in a home assessment. On behalf of this assessment, the buyers can negotiate the price for any required maintenance or repair. Buyers can withdraw their money if a home inspector finds a major problem in the home during this process.
Closing the deal
When the home inspection report satisfies the buyers, this process moves to the next step. In this step, buyers and sellers close a deal, all pending dues are transferred, and the escrow agent ensures that the property is legally transferred to the buyer.
Key benefits of a home inspection during escrow
Some of the major benefits of getting a home inspection are as follows:
Revealing the hidden problems
A professional home inspector reveals all hidden defects in a property. They are fully equipped with the latest tools, which help them identify and highlight all the hidden problems. A home inspector also ensures that the home is structurally sound and meets the proper codes and regulations.
Negotiating the price
On behalf of the home inspection report, you (buyers) can negotiate with the sellers and discuss any necessary maintenance or repairs. It will help you to get a well-maintained home for your family.
Peace of mind for buyers and sellers
Following a secure procedure, both buyers and sellers have peace of mind. The buyers feel comfortable getting a well-maintained home while the sellers are guaranteed a secure payment.
Final Words
Home inspection is important in the Escrow process. It indicates that the home meets the terms and conditions agreed upon in the agreement. That’s why home inspection plays a key role in this process. We strongly recommend that you hire a certified home inspection company like The BrickKicker for a seamless escrow process.ently communicate with the sellers about the highlighted issues.