When finalizing the deal on a house to a buyer, escrow is an important last-step to dot the I’s and cross the T’s. To be in escrow is to be in the final stages of getting the keys to your new place, for good reason. This is the person who holds the responsibility of ensuring the financial details are managed during the transition of ownership to the buyer. Having a third-party involved creates an impartiality in such a big transaction, and ensures everyone gets paid accordingly.
Here are 4 important aspects of escrow that you need to know to seal the deal.
Types Of Escrow
When closing on a listing, there could be any number of these types of escrow in-play. There’s the earnest money escrow, which is the deposit you’re required to pay the agent upon signing. There’s the deed to the property which may be held in escrow until completion of the sale. After which it’s transferred to your name and recorded at the courthouse.Thirdly, the lender may hold the loan proceeds in escrow until the closing is done. At which point the money is distributed to the seller, or a lien holder. Lastly, the monthly payment escrow comes in to the picture at closing. Lots of payments, and funds withheld safely until there’s no question of who the new home belongs to.
Who Handles The Money? Why?
As mentioned before, an escrow agency is important to create an impartial third-party. This waves any worries the prospective homeowner may have about the agency they’re purchasing from. It eliminates the notion that any “shady” business is going on, especially if there’s any question of the merit of the real estate agent, or their knowledge of the integrity of the home.
An experienced officer handles your paperwork—usually a lawyer or title company representative—holding all the important documents and deposits while the buyer and seller work out the details. As any person involved in business might validate, details are different than actual numbers when it comes to a big sale.
Being A Knowledgeable Agent
Don’t leave your buyer in the dark at this point! In previous blogs we’ve highlighted that a sleek agent will keep a couple selling-points on a property until the deal is about to be sealed. Well, now it is! When the signing is done and the escrow process begins, this is the time to bring the sale home. Talking-up the beauty, location, or quality of the property during these escrow interactions is only going to keep your buyer happy. You’ve already essentially sold the house, so don’t poison the well by forgetting important details, or losing enthusiasm about the home itself in the eyes of the buyer.
Good news! There’s no fixed-fee for escrow services, and their charges aren’t regulated. Often they vary in accordance with the value of the sale. Occasionally an escrow agent may begin with a fixed fee, but then charge additional fees for copies, office expenses, and wire transfers. These charges can be rolled into the title insurance provider’s fee too.
As part of the final closing exercises, all escrow services and fees are detailed in the official Loan Estimate provided. In some states, it’s not uncommon for the buyer and seller to split the escrow fees, while you may still negotiate that a portion, if not all, of the fees to be paid by the seller. The process of buying a home isn’t easy, but with a well-educated perspective on the escrow aspect of selling and buying, it will go a lot more smoothly.
Contact us to talk more about social media and Washington real estate opportunities.
Top Snohomish County Neighborhoods
- Lake Stevens
- Hat Island
- Granite Falls
- Mill Creek
- Canyon Park
- Gold Bar
- Silver Lake
Real Estate Solutions Group aka RESG is Washington’s most innovative real estate team. Serving the greater Seattle Metro for luxury homes, residential home buyers, home sellers, real estate investors, new construction, land, and land development.