Why Escrow Is Not a One-Size-Fits-All Industry
Buying or selling a house can be a complicated and stressful process. It is often one of the biggest financial decisions in a person’s life. Throughout the process there are legal and financial transactions in place and it is important to make sure everything runs as smoothly as possible.
Fortunately, there is a third party service called escrow to help you through this process!
What Is Escrow?
Escrow is a process that occurs between the period of the purchase agreement and the closing of the house. Escrow companies hold and organize all the necessary documents, and make sure all that funds are accessible for transactions. Escrow is a great neutral middle man, which is helpful to keep both parties safe and accountable to the agreed terms.
Why a Personalized Escrow Service Is Important
The escrow company you chose is going to follow you through the whole escrow process. You want to find an escrow company that you trust to handle your funds, and keep up with deadlines.
Another thing to keep in mind when looking for a personalized escrow service is to find a company in your area. You want to make sure your company is familiar with the real estate market where your transaction is taking place because different counties can have differing methods of how real estate transactions are done. For example, if you live in San Diego, New Venture Escrow services the area and can offer personalized services due to location!
Naturally there are things that can go wrong during escrow therefore it is important to choose an escrow service that is equipped to handle any problem that comes your way. Conflicts that can occur may be:
- Problems with the seller’s title
- Problems with the house revealed during inspections
- Errors in documents
- Issues with accessing funds
- Problems with the lender
- Last minute conflict during a walk through
The right escrow agent can help you keep a peace of mind by tackling these issues if necessary.
Aside from protection and assurance during conflict, escrow services can benefit the buyer, seller, and real estate agent in different ways.
What Escrow Can Offer Each Party
- Buyers: If you are buying a home, one of the best things escrow can offer you is the security of your money. When a buyer goes through a purchase agreement and the sale falls through, they will get their deposit back from the escrow company. If they had given the deposit directly to the seller there is a chance they could not get the deposit back.
- Sellers: Escrow service is beneficial to sellers because they do not have to keep track of different due dates for payments. Escrow helps sellers set money aside each month for property taxes and insurance premiums so they do not have to pay a large sum up front.
- Real Estate Agents: As a real estate agent, your client is going to ask you a lot of questions. You will most likely have to help them understand the escrow process and which escrow company to choose from. It is very beneficial for realtors to use escrow to make the closing process smoother and less stressful. If you know you have the escrow taken care of by trusting, experienced professionals, you will be able to focus more on your client and your work.
Do Your Own Due Diligence First
The escrow company is chosen by the buyer or the real estate agent and then agreed upon with the seller. The real estate agent will usually recommend an escrow agent that he or she successfully worked with in the past. The real estate agent can offer valuable input but it is still important to confirm for yourself that they are recommending the right escrow service for you.
You want to choose the right escrow company for you by taking into consideration factors like:
- Communication: You should choose a communication style that works for you to stay up to date with your escrow agent so they can notify you of progress made or any issues.
- Pricing: It is useful to compare prices of escrow services so you know the value of the service compared to others.
- Transparency: Choosing a service that is transparent and trusting is very important because they are handling your money in a very large financial transaction.
- Reputation: Reputation is important, look at reviews of the service you are choosing to make sure it is of high quality.
- Adaptability: You want your escrow service to have enough experience and adaptability to be able to face potential conflicts involved in the escrow process.
- Location: It is important to choose an escrow service located in your county because real estate transaction laws can vary per county.
After considering what you want out of an escrow service we are confident you will make the right choice!
Begin the Escrow Process With New Venture Escrow
At New Venture Escrow, we are committed to offering the highest quality of service and transparency throughout your experience with us. We make the process clear and convenient with our mobile app VentureTrac 4.0.
Venturetrac 4.0 allows you to:
- Easily access safely stored documents
- Receive updates and notifications of completed tasks or documents needed to be signed
- Access contacts of people involved in transactions
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