inspections, the offer is made contingent upon a satisfactory home inspection report of the home you wish to purchase.
Step #9: Put Money in Escrow
Another step of the overall home-buying process while downsizing involves putting money into escrow. You, the buyer, are expected to put money into escrow to make the contract binding, which helps the contract move through and toward closure. Plenty of buyers and sellers, and even people who aren’t in the market to buy or sell a home, aren’t clear about what “escrow” is or means.
Essentially, it refers to a time period, not a place.
“What is escrow? In real estate, it has several meanings, but they all boil down to your house and your money being in a kind of limbo. Escrow is when an impartial third party holds on to something of value during a transaction,” according to Zillow. 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 — to the 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. If you’re still confused, don’t worry; you’re definitely not alone. Thankfully, in most cases, a neutral, third-party escrow agent who specializes in this can help everybody — buyer and seller, and their agents — navigate this step, and make sure the actual transaction is overseen to ensure the offer’s clauses will be met
136
Powered by FlippingBook