What is an Escrow?
Buying and selling a home is probably going to be your largest purchase you make over the course of your lifetime. It’s not the case for everyone, but it is the case for many! When that much money is in limbo, there’s a level of vulnerability that can scare the pants off of most people. Escrow provides a sense of security in an extremely emotional situation.
Real Estate Terms Can Be Confusing
We’re in the world of real estate and frankly, we understand how confusing real estate terms are. Even us professionals in the real estate industry find them confusing on occasion. After being in real estate for so many years as the sought after real estate TC firm in California, we’re well-versed in terms like buyer’s agent, homeowner’s association, listing agent, DOM (days on market), COE (close of escrow) and of course, Escrow. We toss them around with fluency, often forgetting those buying and selling homes aren’t familiar with these terms.
We often forget the emotions home buyers and sellers are dealing with as they enter into this unfamiliar world of real estate. So we’re taking a moment to briefly review what Escrow and Escrow Accounts are!
What’s Escrow?
Escrow provides a safety net to home sellers and home buyers. It’s an impartial third party that secures assets during a real estate transaction. Entering into a real estate transaction purchase agreement, many more steps are involved. In California, and other states, attorneys aren’t required during real estate sales and purchases.
Escrow companies step in, hold all the money along with the legal documents until all of the agreed upon terms are met. This provides peace of mind for the seller, because they will know the buyer has the money to actually purchase the house. And, of course, it provides immense comfort for the home buyers, who will know the home they’re purchasing has been researched and given a stamp of approval!
Once every T is crossed on legal documents, and all the inspections have been completed, and all parties are satisfied with the real estate transaction, then the home closing can be finalized. Keys can be passed from the seller to the buyer, and the buyer can breathe a sigh of relief that the Escrow company has made sure that the legal requirements needed to record the need deed on the home have been completed.
How Does an Escrow Firm Work With Transaction Coordinators?
Every step of the transaction requires paperwork before Escrow would ever release funds to pay for any part of the real estate transaction. The amount of paperwork required during a real estate transaction is overwhelming to everyone involved. Escrow agents often work closely with a real estate agent’s preferred real estate TC in order to provide a smooth, seamless transaction.
Escrow Officer Tessa Flechsenhaar of full service independent Escrow company New Venture Escrow loves how quickly Be Happy TCs agents respond to everyone they work with, and their superior attention to detail with all of the paperwork passing through their fingertips. Working together creates a phenomenal experience for California real estate agents, and their many clients.
Finding the Right Real Estate Team
When getting ready to buy or sell a home, it’s important to find the right real estate team to create a seamless experience for yourself. Ask the real estate agent about their process, and the professionals they have on their team.
