When you sell or buy a home, near the end you will be caught up in escrow. Fortunately, it’s not as scary as it sounds.
Escrow, in very simple terms, refers to when a buyer gives a check to a third party (the escrow company) who holds the check until all the paperwork has been cleared before sending the funds to the seller.
Benefits of Escrow
Limits Buyer/Seller Interaction
While this may seem small, it makes a major difference. Assume you were selling your home to your friend. Of course, you are going to be more lenient on the price negotiation. Despite wanting to sell the home, you also are familiar with the buyer and may take their needs into account. Overall, this clouds judgment and makes a true sale far more difficult process.
Additionally, the same would be true if you were selling to a sworn enemy. Dealing with someone you dislike in general is far tougher to come to a decision on. This goes the same for selling your home, or buying a new one. You don’t even like the idea of them having the property in the first place, why would you give them a fair asking price?
Having an escrow group lowers the risk of this happening. You get faster, more efficient results without putting yourself at risk of a sale going south due to personal relationships (good or bad).
You wouldn’t trust just anyone to drive your car right? The same goes for acquiring a home. You put yourself at risk when you don’t hire adequately experienced professionals to help you with your home. This can lose you money, risk your property’s sale, and be more expensive.
Experienced professionals in escrow can expedite that process and leave you sitting pretty. You won’t have to worry about not getting a fair deal, and your home is in the right hands the whole way.
How does the escrow company protect you during the exchange of funds for such a large purchase?
- Experience and Expertise – A qualified escrow company has completed hundreds, if not thousands, of escrows over time. The staff can adapt to challenges that come their way.
- Safety and Savvy – Your escrow company keeps both parties safe until they can make a mutual agreement based on all of the terms of the sale. As a buyer, you would not want to give a huge deposit directly to the seller before everyone agreed. The seller could hold your deposit hostage to force you to acquiesce to terms that may not be in your best interest. As a seller, you would not want to sign the deed over to the buyer until you received all of your money.
- Resources and Relationships – An escrow company that has been in business for any good length of time will have established relationships with qualified professionals that will help process the sale of your home. If the buyer’s loan falls through, your escrow company will refer their trusted mortgage broker. You may find you need title insurance along the way, and your escrow company can give you a trusted referral.
When your realtor wants to recommend the very best, Vision Escrow Group, Inc. of Downey, CA is the best choice.