Both buyers and sellers pay escrow fees when a home is about to be sold. Escrow is mandatory in most places to function as the process that closes the deal, which involves a neutral third-party collecting money and deeds from both the buyer and seller. Here are some important points to know about what to expect from escrow when you buy or sell a property.
Going Through Escrow After an Accepted Offer
During the escrow process, a third party, such as a bank, title company, or escrow agency, facilitates a home sale transaction, holding money and documents until both the buyer and seller meet certain conditions. Once the contract is fully accepted by the seller’s offer, the buyer gives the escrow agent an earnest money deposit “EMD” to indicate they intend to purchase the property.
What Escrow Involves
Escrow begins with the seller’s acceptance of a home offer from a buyer and ends with the buyer becoming the new homeowner. It typically takes about 30 to 60 days.
Meanwhile, the seller is expected to pay off the existing mortgage thru escrow prior to receiving funds for sale. And Buyer will obtain financing, if applicable thru escrow by having the escrow and his lender tie in the process of signing final loan closing documents and receiving the loan funds to apply towards the purchase price.
Another aspect of escrow involves coordinating with the title insurance company for title search that confirms the ownership vested interest as well as any liens that are attached to the property.
Breaking Down Escrow Fees
After all, is said and done, the homebuyer typically pays escrow fees of about $4 to $4.5 per thousand of the home’s final selling price. Each escrow agency sets its own rates. In the majority of home transactions, the buyers and sellers split escrow fees.
Want to Learn More About Escrow Fees in a Home Sale? Consult Brighton Escrow!
Before rushing into buying a home, be aware of all fees involved. Remember that the home selling price is not the final amount you pay. It helps to work directly with escrow experts. Contact us at Brighton Escrow, Inc. for more information on navigating through the escrow process.