For a new homebuyer or seller, words like “escrow” can sound like you are saying something in a completely different language. The terminology is foreign to them and the concept is something they are unfamiliar with too.
That’s why as a real estate agent it’s not only important to explain the concept to new home buyers and sellers but to also give tips to new buyers and sellers on choosing the best escrow services that are available.
The fact is that your real estate business can benefit greatly from an experienced escrow company. The closing process will be smoother, which means a less stressful time for all parties involved — including you!
In this article, we will be focusing on useful tips for choosing a good escrow company and the benefits of using one!
What are the Benefits of Hiring the Right Escrow Company?
Using an escrow service has a lot of benefits!
For one, you can protect the buyer’s good faith deposit and you can hold the homeowner’s funds for taxes and insurance.
In addition, neither parties can touch the money should a dispute arise. It serves as a protection for the buyer and seller, while also protecting the deposit and title — and ultimately your deal.
Let’s not forget that as a busy realtor, you want an escrow service that outperforms in order to ensure that your time can be spent on activities that drive your business….not on dealing with anything escrow related.
Escrow Tips for Real Estate Agents
You may be wondering what are the tips and tricks that you need to know about escrow as a real estate agent, and how to pass this information to clients.
The first tip is that you should understand the importance of referrals from other realtors about escrow companies they have worked with.
Referrals are a way to ensure that you are getting recommendations for escrow companies that have been used from others and have provided quality service to other agents, buyers, and sellers..
Make sure that when you are getting referrals they are from realtors who have been in the business for a long time and that have been trusted by many. These individuals understand the challenges associated with the business and may be able to point you in the direction of a company or two that does it right.
They may also be able to call attention to escrow companies you should steer clear from as they have had a bad experience with closing with them.
The second tip is all about communication. Escrow can be a stressful and confusing experience for buyers and sellers (and you too!). You’ll want to find an escrow company that values time, transparency, and convenience.
The last thing that a buyer or seller wants is to not know what is going on with their money, property, or where they are at in one of the biggest transactions of a lifetime.
Last but not least, technology is something to consider. Escrow has been done the same way for generations, and the time for a change is now. Look for an escrow company that offers tools and technology that support digital escrow as a viable option. More on this below!
Choosing the Right Escrow Company
To stem off of the importance of referrals, communication, and tech, choosing the right escrow company makes all the difference in the world because it can make or break a sale.
Here are some key factors to investigate when selecting an escrow service:
Reputation and Experience
Make sure that the escrow company has a history of positive service with the buyers, sellers, and real estate agents. If you are choosing an escrow company that has a scattered track record it can cause problems if you end up with a third party that doesn’t know what they are doing.
You can also look at how long the company has been in service. If a company is new that shouldn’t deter you, but still know that people often value years of experience over anything.
Knowledge of the Escrow Process
You want to make sure that the service you use is aware of all of the in’s and out’s of escrow! This can be making sure they know the process fees, and have a set timeline of how long the process is on average.
Something to take into consideration is that due to the current circumstances of the Covid-19 pandemic, there has been a shift to making escrow more digital and you want to make sure you are choosing a company that is up to date on the latest technology, processes, and services.
Choose New Venture Escrow for All Your Escrow Needs
With so many options out there and many new processes arising in the midst of the pandemic, escrow services like New Venture Escrow are here to help you navigate these murky times with their expertise and convenience!
New Venture Escrow offers virtual escrow services for real estate agents via our new app, VentureTrac 4.0. The app offers information to your clients within seconds and allows you to access or email files directly from your phone, and save and store all of your information in one convenient location. With New Venture Escrow, it’s never been easier to maneuver the real estate market virtually and safely.