What is Escrow?

In real estate, whether you’re buying or selling a home in Aspen, you’ll hear the term escrow.
But what does it mean, and how does it work?
Here’s what you need to know.

In real estate, escrow is a secure holding area where all the important items pertaining to the deal are held. That can include earnest money checks, contracts and inspection reports.

How Does Escrow Work?

An escrow agent – a third party to your transaction – oversees escrow. It’s usually someone from the real estate closing company, a lawyer or a title company agent.
The escrow agent is there to make sure everything goes according to plan. That includes the transfer of money and important documents.

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Escrow protects everyone in the transaction – the seller and the buyer. It ensures that the seller doesn’t get the earnest money deposit before the deal goes through, and it ensures that the buyer doesn’t skate out on the deal and take the earnest money deposit along for the ride unless it’s outlined in the contract.

How Much Does Escrow Cost?

Escrow typically costs about 1 to 2 percent of the home’s cost.

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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