Real Estate April 10, 2023

The Importance of Escrow in Real Estate Transactions

Real estate transactions can be complex and involve a considerable amount of money. Whether you are a buyer or a seller, real estate is often your biggest investment. That is why it is important for both buyers and sellers to protect their interests and ensure that the transaction is completed smoothly. This is where escrow comes in.

What is Escrow?

Escrow is a financial arrangement where a third party holds and regulates the payment of funds required for both the buyer(s) and the seller(s) involved in a transaction. Escrow helps ensure that the transaction is completed smoothly and according to the terms agreed upon by both parties. Both the buyer and the seller provide the escrow agent with written instructions. When all conditions have been met, the escrow officer sends the closing papers to the county recording office, where the new deed is recorded. The escrow officer then releases funds to the seller.

How is Escrow Used in Real Estate Transactions?

In a real estate transaction, escrow is used to ensure that the buyer’s funds are securely held until all the terms of the sale, such as the transfer of the property title, have been completed. In addition, the escrow agent may also be responsible for completing tasks such as ordering a title search, obtaining necessary documentation, and disbursing funds according to the instructions of the parties involved in the transaction. During this process you may hear the term title insurance and you might wonder what it is. Title insurance is like a safety net around your property. Sometimes hidden mistakes in previous deeds, mortgages, easements or other recorded documents might give someone else an ownership stake in the property. It is important for you to get Title Insurance to protect you and your home as it will save you time and money in the future if problems arise. You can learn more about it in our “What is title insurance and why is it important?” blog. Read it here.

In conclusion

Escrow is an important tool that helps to protect the interests of both buyers and sellers in a real estate transaction. It ensures that the transaction is completed smoothly and according to the agreed upon terms, and helps to reduce the risk of disputes or issues arising. If you are buying or selling a property, it is important for you to understand the role of escrow and how it can benefit you.

If you are ready to connect with an agent or have any further questions, please don’t hesitate to connect with us today by clicking here. If you are just getting started on your home buying journey, consider reviewing these real estate terms to help you along the way.

Real Estate September 12, 2022

What to Expect When Selling Your Home

Selling your home can be overwhelming and feel like a full-time job… which is why there are realtors! Good realtors make the process so much smoother and less intimidating. To keep your mind at ease and prepare you for what will happen throughout the sale of your home we are sharing 10 top tips to get you from listed to sold in no time!

Discover what to expect when selling your home

1.       Select the right agent the 1st time

It is of the utmost importance that you pair with a full-time, knowledgeable agent who can best represent you through the process. This should be your number one priority. Studies show that homes listed with an agent sell for more than those listed without, and this is for good reason. Great agents dedicate their lives to keeping up with economic changes, are masters at negotiating and getting things done, and know all rules and regulations. This will pay off immensely in the long run if you trust their process. If you are unsure where to start, ask your friends who they trust and about their experience with them but don’t stop there. Interview at least two, preferably three brokers, and the differences should be immediately clear. If you still need help, Windermere has a full-time manager that will ask you pertinent questions about your needs, personality style, and specific goals to make the perfect real estate agent match. Windermere’s ultimate goal is not the sale of a home but to give you a real estate experience you want to share with others! When you are ready to pair with an agent connect with us and we will match you with the perfect broker.

2.       Set your timeline

A timeline is valuable in that it will keep you organized throughout the entire selling process. Anticipate that your timeline might change depending on circumstances and your local housing market conditions. You may need to adjust a couple of times, but the purpose is to keep you on track toward your end goal. SOLD! Your timeline will help guide you there. Know what the average days on market are for your home and price range (click here to determine Whidbey Islands) then add an average of 30-45 on that to get an estimate of how long it will take to sell once you go live. Work with your agent to build your unique timeline.

3.       Determine your home’s value

The SECRET to selling quickly is pricing your home right the first day it hits the market. Overpricing can create serious problems like not being seen by the right buyers, less traffic both in person and virtually, and worst of all becoming less attractive to buyers the longer it sits resulting in lower offers than if you priced it attractively, to begin with. Your agent will provide you with a (CMA) Comparative Market Analysis which compares your home to others in your local area that recently sold and/or are actively pending. This formulated analysis will assist you in properly determining the best price for your home. Discuss this with your agent. They will help walk you through the process even if you aren’t sure you’re ready to sell yet.

4.       Identify issues & execute the plan

This is the time to tackle any unfinished projects and address needed repairs. Talk with your agent to see if a pre-sale home inspection would be advantageous for your unique situation. Begin by creating a list of repairs you can do versus those needing to be hired out. Your agent can help you determine which will be the best use of your time, offer the largest return on investment, and help you find vendors and hire out projects. If money is tight it may be in your best interest to apply to our Windermere Ready Program which gets you cash for fixing up your home to list. Ask your Windermere Agent about how to apply.

5.       Put your best foot forward

First impressions go a long way! Start with curb appeal. Clean up your gardens, mow your lawns, clean out gutters, and add a pop of color to your flower beds. If you have any cracked or peeling paint, apply a fresh coat. Make sure to declutter the inside of your home. The best rule of thumb is to remove personal effects and present your home like a hotel in which the buyer could envision themselves living in the space. Talk to your agent about the possibility of having your home professionally staged.

6.       Get your home seen

Your realtor will help maximize the exposure of your home. They can list with the MLS, will get your listing on all major sites like Zillow and Redfin, and will be listed on their Brokerage site in addition to their own. These are just a few of the many ways in which your listing can be seen. Be sure to discuss the option for virtual tours with your agent. When it’s time for in-person showings, we suggest that you not be present so that the potential buyers can freely walk the home with their agent, ask questions, and ultimately have the space to imagine it as their new home.

7.       Reviewing offers & negotiating

If you price right, you might see more than one offer on your home because we are still in a strong Seller’s market. The offers may be at or above the asking price. When reviewing offers, you have three options: 1. Accept the offer, 2. Make a counteroffer, 3. Reject the offer. These should ALWAYS be made in writing, and you should always give the buyer a short time to respond. Whether you are selling or buying, you will likely find yourself in negotiations. It is important for you to discuss negotiation strategies with your agent ahead of time. At Windermere, we pride ourselves on negotiation tactics grounded in psychology and win-win strategies.

8.       Budget for closing costs

Closing costs include things like title insurance, recording fees, government taxes, lender fees, broker commissions, and numerous other things. Be sure to discuss this with your agent ahead of time and throughout the transaction so you don’t feel blindsided at closing and are adequately prepared.

9.       The inspection

It is common for offers to be contingent on a professional home inspection. Your agent can prepare you for what to expect from a home inspection. Typically a home inspector will look at things like the foundation, structure, roof, plumbing and electrical systems, floors, windows, doors, and signs for things like water or fire damage.

10.   Closing

You finally made it, but before you can officially close there are a couple of things to do. Ask the buyer to release any contingencies, sign the title, and close escrow before releasing the keys. Your escrow agent will help you through this process. Talk with your agent about questions you have about legal documents and settlement costs.

 

If you are considering selling and would like to speak to an experienced Windermere Realtor for more specific information connect with us by clicking here.