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.