Now that we’re in Escrow what’s next?

What’s Escrow All About?

In Southern California we have the best real estate transaction system in the U.S..  We use an “Escrow” system…with a history that goes back to 1895.   An escrow company is a state-licensed business…a neutral third party that handles the money and important documents for buyers and seller during real estate transactions.  Here’s a great link to learn more about Escrow from the most respected source in this area..The California Escrow Association.

This process is the most open and transparent way to buy and sell real estate.  Other states use the “closing table” system…where you have to sit at a table with attorney’s on the last day and hassle out all of the details.  In Southern California the Escrow company prepares complete escrow instruction right at the start of the sale…Both parties have to agree and sign the instructions before anything happens…so there are NO SURPRISES!

Part One: Disclosures and Buyer Investigations

After the purchase contract is signed by both parties…we begin the buyer’s investigation of the property.  California law protects buyers, and they are generally given a 17-day period to make any needed inspections.  At the same time the sellers provide complete disclosures to the buyer of all material facts about the property.

When we’re working togehter we’ll have all the disclosure forms filled out in advance…so this job is quick and easy for the seller…and disclosures are the greatest protection for the seller…once a buyer is given written notice of conditions affecting the property they can’t later claim they were not informed.

Buyers have a pre-determined amount of time to evaluate the disclosures, investigate the property, and make certain that it meets their expectations.  During this same time the appraisal and loan conditions are being satisfied.

We watch this process carefully to make certain the inspections and loan approvals are completed on time.

This inspection period is the most critical phase of any sale…and our earlier negotiation style has a major impact here.  Put yourself in the buyer’s shoes…are you more likely to be critical and demanding if:  a) you feel the seller was fair and honest with you, and really sought a deal that worked for everyone?  Or, b) you feel like you gave up everything in the negotiations and just have nothing left to give?

I can’t count the number of times I’ve seen buyers accept major defects because they felt they were getting a good deal….and on the flip-side I’ve seen buyers balk and walk away for absolutely minor issues because they felt they were not treated fairly.

Selling a home is a lots of work for the seller…lots of disruption to your lifestyle while the sale is underway…it’s way easier for you to pick the right buyer the first time…and then manage the sale so everyone walks away knowing this was a good deal all the way around.

Part Two: Appraisal and Final Loan Approval

Appraisal is the place where the “rubber meets the road”.  I do extensive research before you list your home with me…we will have as complete a picture as possible of the correct market value of your property…this helps avoid unexpected problems with appraisals.  Every appraiser is an independent evaluator…and their results may vary slightly from our numbers…but we take that into account when you’re evaluating offers!

This is also one of the places where our early negotiations pay off…we do the hard work right up front…so there are fewer surprises later.

I’ll carefully screen every offer you seriously consider…we ask all the hard questions and get detailed financial information right up front.  Well take those extra steps early on because you want to know you’re entering into a contract with a fully qualified buyer. 

Part Three:  Repairs and Closing

At this point the buyers and sellers will have negotiated clearly written instructions for the items (if any) that need attention before escrow can close.  If you need any repairs I’ll work with you to find good quality contractors with the best prices…and help you manage the entire process.

Once we’re through this final step of completing any needed repairs you’re ready to move on the the best part of all…A Strong Finish!