Market Updates

Real estate Q&A: What is escrow?

November 21, 2018

Making an offer on a house is the riskiest part of the home buying process.

Escrow is a system put in place to mitigate some of that risk. It’s the neutral middle ground where earnest money is held until both buyer and seller have reached a deal. Neither party can touch it until the purchase has been completed; when that happens, your escrow officer ensures all money gets dispersed appropriately.

As a buyer, offering earnest money (your deposit) to a home seller too early gives them the advantage in negotiating. As a seller, you don’t want to transfer ownership of your home until you’re sure you’ve found a buyer who will follow through.

Escrow is in place to create the balance and trust required for a successful real estate transaction.

 

Alain Pinel agents are ready to help you navigate your next real estate moment.

 

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