The Digital Escrow Process Explained
Are you unsure of what digital escrow is or how digital escrow works? Understanding this newer escrow process may seem tricky, especially when it comes to differentiating between what digital escrow is compared to a traditional escrow. To clear up the confusion for you, we will explain what the digital escrow process looks like. If you feel that you need a more in-depth look at what escrow is in general, see our ULTIMATE GUIDE TO ESCROW for all the info you’d ever need about escrow.
Let’s get right into it.
Current Escrow Options: Traditional vs. Digital Escrow
Escrow in real estate refers to the documents and funds involved with a home sale that are held by a neutral third party until the sale is complete. Essentially, a neutral third party can be thought of as the “middleman” that ensures that the paperwork and funds are in order.
Most importantly escrow facilitates trust between all parties and reduces the likeliness of experiencing fraudulent activities.
So what does this mean? How does traditional and digital escrow differ?
Well, the actual escrow process is the same. The key difference is how the process is conducted (eg. whether an in-person or online platform is used, creating a custom experience for buyers, sellers, and agents, etc.). It’s important to look at the differences and how digital escrow can be more advantageous, especially in unprecedented times like these.
How Digital Escrow is Changing Traditional Escrow
Let’s evaluate some factors and look at how digital escrow’s benefits outweigh those of traditional escrow’s.
Instead of having to request information through people and waiting for responses, digital escrow gives you access to information in seconds. How does this work?
Well, for example, we offer our clients a digital escrow platform called VentureTrac 4.0 that allows buyers, sellers, and real estate agents to monitor the progress of their escrow from open to close. This digital escrow tool gives you access to documents associated with the escrow process, tracks activities and signatures of each document, and stores all contacts involved in your escrow transaction in one place.
This approach to escrow puts an end to the constant back and forth and allows you to stay on top of your escrow process more easily. With digital escrow, you’ll also receive custom notifications for important tasks.
One of the features that real estate agents love most in the app is access to a “virtual filing cabinet” that holds all your relevant documents 24/7. Easily store and look back at all the documents involved in your escrow process in one place.
2. Tracking Capabilities
Unlike traditional escrow, digital escrow allows you to track progress easily.
Think Domino’s pizza. When you order online, you know exactly where your pizza is and where it is at in the process. You even know when your pizza is baking in the oven!
This extremely precise tracking capability is what you can now get with your very own escrow!
With real-time updates and notifications sent right to your device, you can follow which tasks are completed, when documents need to be signed, and what tasks you need to do next. We have automated the process with custom alerts to make sure that important info is sent out right away to minimize confusion, stress, and maximize efficiency and communication.
Most communication in traditional escrow is very reactive since there are no custom notifications to let clients know specifically what is going on in the process. With digital escrow, clients can easily track and be in the know of what is going on in a matter of seconds.
There are often many different parties involved in a real estate transaction as well, making it difficult for buyers and sellers to know who to call and how to reach them. With digital escrow, all contacts in a transaction are stored in VentureTrac 4.0, in one convenient location. You can even call or email them directly from VentureTrac.
Furthermore, with the pandemic still present, communication is safely conducted through online platforms if you wish to minimize social contact.
Ready to start using digital escrow? That’s a great decision! Now, let’s look at the benefits of people (real estate agents & buyers or sellers) who decide to partner with a digital escrow company.
Remember, you can reach out to us anytime to get your questions answered immediately by our staff.
Benefits of Using a Digital Escrow Company for Real Estate Agents
Real estate agents can get very busy. From balancing multiple listings and personal life matters, staying on top of everything can be overwhelming. Here is a list of the top reasons real estate agents love using digital escrow:
1. Live status updates on all escrows at any time
With digital escrow, real estate agents can stay on top of what is happening in a client’s escrow, even when transactions are conducted outside of a regular 9-5. This keeps agents organized, productive, and proactive when it comes to closing more homes.
Keep in mind that as a real estate agent who is super busy, you have the ability to turn off custom notifications for escrows that you have in progress, so your mobile device isn’t going off all day and your inbox isn’t constantly notifying you about escrow if you do not wish to receive custom alerts.
2. Access to all escrow information at any time
Closing on several homes at one time is what all real estate agents dream of. But with success, comes more responsibility. Handling several closings at one time is met with more paperwork and multitasking. With digital escrow, however, agents have access to all the documents they need in one place for all the clients they are helping.
With digital escrow, clients are happier and real estate agents have more time to dedicate to growing their business.
Real estate agents who want to know more about how digital escrow can help your business should contact us right away!
Benefits of Digital Escrow for Buyers and Sellers
Lastly, the escrow process can be confusing for both buyers and sellers, especially without experience. Here are the benefits of escrow machine buyers and sellers rave about:
1. Know where they are in the escrow process
Using a digital escrow process keeps buyers and sellers in the loop with where they are at in the escrow process. Instead of being lost and confused about the status of their escrow, buyers and sellers can easily follow up with other parties to track their progress and see the light at the end of the tunnel.
2. Understand the escrow process clearly and succinctly
Long gone are the days of confusion over what is happening in the escrow process. With digital escrow, buyers and sellers can get clear and succinct information on what is going on with their escrow.
Overall, digital escrow removes the complexity of needing banks and lawyers while maintaining reasonable rates and trust.
Go Digital With Escrow
You’ve learned the basics of digital escrow and its advantages! Now, you can get your traditional escrow services with all the amazing features and benefits of a digital experience.
At New Venture Escrow, we want you to have the ability to choose how you want your escrow experience to be. We won’t force any new technology upon anyone if they would prefer to go a more traditional route, however we offer an improved escrow experience in every possible way, including the ability to experience a new, more convenient and efficient way to do escrow that will leave you with less stress and more peace-of-mind.
The choice is yours.
Just know that whether you are a buyer, seller, agent, or anywhere in between, New Venture offers custom experiences to fit your unique escrow needs.
Contact us at New Venture Escrow for help getting through your next virtual escrow process. We can make your escrow closing process a safer, smoother, and easier experience.
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