In real estate, escrow is there to protect both buyers and sellers. It’s a safe place for money and documents, which are held there until the deal closes and the transaction is complete.
Here’s how it protects you.
How Escrow Protects Buyers and Sellers
Here’s an example of escrow protecting a buyer. Let’s say that a buyer hires a home inspector, and the inspector discovers that the home has a big roof problem that needs to be fixed. The seller agrees and hires someone. However, during the buyer’s final walkthrough, he or she discovers that the roof hasn’t actually been repaired as it was supposed to be.
Escrow hangs on to the buyer’s money until the roof is repaired properly.
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Here’s an example of escrow protecting a seller. When a buyer comes along and offers to buy the house, the seller takes it off the market. That means nobody else can buy the house – in fact, nobody’s even coming to see it. But if the buyer gets cold feet and walks away from the deal, the seller will most likely still be entitled to the buyer’s earnest money deposit (and that’s no small amount – most earnest money deposits are between 1 and 3 percent of a home’s purchase price).
Are You Selling a Home in Aspen?
If you’re ready to sell your home in Aspen, Woody Creek, Basalt, Carbondale or Snowmass, we may be able to help you.
Get in touch with us right now to find out how much your home is worth – and discover how we’ll be able to help you sell it quickly and for top dollar.
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