When selling a home, the escrow process can be one of the most daunting tasks for homeowners and buyers. The escrow process is the period of time between the acceptance of a purchase agreement and the closing of the sale. During this period, the buyer and seller will work to complete all the necessary steps to transfer ownership of the property. While this process can take a long time with a traditional MLS listing, things are much faster with a direct sale to Fresh Start Homes AZ.
In this blog post, we’ll walk you through the typical steps of the escrow process and what homeowners can expect when selling a home in Surprise. We’ll also discuss how a direct sale to Fresh Start Homes AZ can make the process much faster and less stressful.
Step 1: Opening Escrow
The journey through escrow begins with the opening of an escrow account. Once the buyer and seller have agreed on the terms and conditions of the purchase agreement, they enter into an escrow agreement with an escrow company. This neutral third-party entity will hold and manage the funds, documents, and other assets related to the transaction.
Opening escrow involves submitting the purchase agreement and any initial deposits to the escrow officer. The escrow officer verifies the accuracy of the contract, ensures all necessary signatures are in place, and initiates the escrow process.
The escrow company will then open a file and send out instructions to both parties on what they need to do next. During this stage, it is crucial for all parties to review the terms of the purchase agreement carefully, as they form the foundation for the entire escrow process.
Step 2: Title Search and Insurance
A clean and marketable title is essential for a successful real estate transaction. The escrow company works with a title company to conduct a thorough title search, uncovering any existing liens, encumbrances, or legal issues associated with the property.
If any title issues arise, the escrow officer will collaborate with the seller and their representatives to address and resolve these matters. In some cases, sellers may need to clear outstanding liens or judgments before the transaction can proceed.
For buyers, receiving a clear title provides peace of mind that they are acquiring the property free from any unforeseen legal claims or disputes.
Step 3: Home Inspection and Repairs
After the title search and insurance have been completed, the buyer will typically schedule a home inspection. The inspection will identify any issues with the property that need to be addressed before the sale can be completed. The seller will then need to make any necessary repairs discovered by the inspection and desired by the buyer. An alternative is for the seller to offer a credit to the buyer to cover the cost of the repairs.
Step 4: Appraisal
In most real estate transactions, buyers rely on financing to complete the purchase. As such, the lender will order an appraisal to assess the fair market value of the property. The appraisal is a critical step, as the lender will typically not approve a loan for an amount exceeding the appraised value.
Buyers should be prepared for the possibility of the appraisal coming in lower than the agreed-upon purchase price. In such cases, they may need to renegotiate the purchase price with the seller or bring additional funds to cover the difference.
Simultaneously, the buyer’s lender will review the buyer’s financial information, credit history, and employment status to assess their eligibility for the loan. Loan approval is another significant milestone in the escrow timeline, as it paves the way for the final stages of the transaction.
Step 5: Contingencies
Once escrow is open, the buyer enters the contingency period, which typically lasts for a specified number of days as specified in the purchase agreement. During this crucial phase, the buyer has the opportunity to conduct inspections, investigations, and due diligence on the property to ensure it meets their expectations and standards.
Common contingencies include home inspections, pest inspections, title reviews, and financial contingencies (such as loan approval). It is essential for the buyer to act diligently during this period and promptly address any concerns that may arise. Failure to remove contingencies within the agreed-upon timeframe could lead to delays in the closing process.
For sellers, the contingency period can be a waiting game, as they must patiently await the buyer’s completion of inspections and reviews. Sellers should be ready to provide any requested information or documentation to facilitate the buyer’s due diligence.
Step 6: Closing
Once all the steps of the escrow process have been completed, the sale can be closed. This involves the transfer of ownership from the seller to the buyer and the exchange of funds. The escrow company will ensure that all necessary paperwork is signed and that the funds are transferred.
As you can see, the escrow process can be lengthy and stressful for homeowners. However, there is a faster and less stressful option available – a direct sale to Fresh Start Homes AZ.
Why Choose Fresh Start Homes AZ?
With a direct sale to Fresh Start Homes AZ, there is no need to go through the escrow process. Instead, Fresh Start Homes AZ will make an offer on your property and can close the sale within days. This means that you can avoid the stress and uncertainty of the traditional escrow process and get cash for your property quickly.
In addition, a direct sale to Fresh Start Homes AZ offers several other benefits. For example, you can avoid the need to make repairs to your property or stage it for showings. Fresh Start Homes AZ will buy your property as-is, regardless of its condition. This can save you time and money and make the process much more convenient.
Another benefit of a direct sale to Fresh Start Homes AZ is that there are no real estate agent commissions or fees to pay. When you sell your property through a traditional MLS listing, you will typically need to pay a commission to the buyer’s agent and your own agent. This can add up to thousands of dollars in fees. With a direct sale to Fresh Start Homes AZ, there are no commissions or fees to pay, which means that you can keep more of the sale price for yourself.
Finally, a direct sale to Fresh Start Homes AZ offers certainty and peace of mind. When you sell your property through a traditional MLS listing, there is always the risk that the sale will fall through during the escrow process. This can be devastating for homeowners who are counting on the sale to go through. With a direct sale to Fresh Start Homes AZ, you can be confident that the sale will go through as planned and that you will receive cash for your property.
The escrow process can be a stressful and time-consuming experience for homeowners. However, there is a faster and less stressful option available – a direct sale to Fresh Start Homes AZ. With a direct sale to Fresh Start Homes AZ, you can avoid the uncertainty and stress of the traditional escrow process and get cash for your property quickly. If you’re looking to sell your property in Surprise, contact Fresh Start Homes AZ today to learn how we can help you. (928) 421-2678 and (928) 239-7573