their bank, or contingent upon the sale of their home. For home inspections, the offer is made contingent upon a satisfactory home inspection report. This might seem like a lot to remember and keep in mind when making an offer on a home. That’s because it is. And that’s why you need to hire and work with an experienced real estate agent, so you can gain the upper hand and have the power in the negotiation process.
Step 8: Put Money in Escrow
Part of the home-buying process involves putting money into escrow; the buyer is expected to put money into escrow in order to make the contract binding, which then helps the contract move through and toward closure. A lot of people, both buyers and sellers, are confused about what “escrow” is. Essentially, it refers to a time period, not a place. Escrow is the period between 1) the time an offer of purchase is made on a property; and 2) the time when that property’s title is officially transferred from seller to buyer, or new owner. The escrow process is essential in cases in which the ownership title will be changed. The money put into escrow, or the initial deposit amount collected as part of escrow, is considered as “good faith” money or “earnest” money. This money is the payment amount that will follow the home purchase process. How much money are you, the buyer, supposed to put into escrow? This totally depends on the terms as stipulated in the offer of purchase. Still confused? The good news is that an escrow agent who specializes in this period and process should be involved. The escrow agent serves as a third party who enjoys a neutral state between seller and buyer and helps provide assurance to both parties. The escrow agent is also heavily involved in the actual transaction to ensure the clauses of the offer will be met completely, accurately, and satisfactorily. Further, the escrow agent serves as the manager of the trust
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