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 accurately, completely, and satisfactorily. So how long does this “earnest” money stay in escrow? The money collected from the buyer (you) is held in escrow until the seller completes their obligations, and transfers the title over to you. After this transfer is authorized, verified, and completed, the payment is then remitted to the seller. This “good faith” money is usually used to cover some of the down payment, the purchase price, and the closing costs.
Step #10: Negotiate with the Seller
In real estate transactions, the negotiation process is one of the key steps for both the buyer and the seller. While the seller and listing agent want to sell the home for the highest amount they can, you as the buyer (and your buyer’s agent) will, reasonably, want to get the best deal you can. It honestly can feel like a competition, and can be challenging and stressful, and this is where negotiations come into play! Later on, we will talk in much more detail about the negotiation process for buyers, but here’s a bit of an overview, because negotiations are a critical step in the overall home-buying process, and things have likely changed over the years or decades since you last purchased a home.
So here are some basic tips to keep in mind when it comes to
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