The Escrow Process | Seller's Perspective
- The Swan Team
- Aug 22, 2018
- 3 min read
The Orange County real estate market is changing, AND...
Home sellers must set realistic expectations, in order to successfully navigate a real estate transaction.
Selling a Home in Orange County
We want you to succeed! The Orange County real estate is shifting to a more balanced market, and a home seller must set realistic expectations to successfully navigate a real estate transaction. Contrary to popular belief, home sellers can sell their home for top dollar faster if they negotiate the escrow process from a seller's perspective.
The bottom line is that preparation is key. In fact, preparation is the difference between between selling your home for top dollar and sitting on the market. Let's take a look at how we can help you successfully navigate your home selling experience.
Escrow Process from a Seller's Perspective
Each day, each step in the escrow process brings you one step closer to selling your home. Even though it may feel like a "spend money to make money" day-to-day grind, but the payoff is worth it. If you are prepared as a home seller, setting realistic expectations in the escrow process makes it a win-win-win for everyone.
Preparing to remove objections and set realistic expectations on this timeline sets you up for success as a home seller. And, there is no better way to succeed in navigating the escrow process from a seller's perspective than by working with a trusted real estate professional.
{Example given with a 30-day escrow and Residential Purchase Agreement (RPA) with default requirements}
Day 0 – Offer Acceptance Date
Day 1 – Day after offer is accepted
Day 5 – Buyer’s Earnest Money Deposit (EMD) is due
Days 1-14 – Buyer conducts any and all inspections of the property at buyer’s expense – determining request for repairs to ask of the seller. Seller provides all disclosures and pertinent information about the property. This is a good time for the seller to interview moving companies and/or determine move-out plan.
Day 17 – Buyer to remove discovery contingencies; if buyer isn't willing to remove contingencies, seller sends a "Notice to Perform"
Day 1-20 – Seller to find replacement property and/or secure new home
Day 21 – Buyer to remove loan contingency and any remaining contingencies {Property changes from ‘Active Under Contract’ to ‘Pending’ status in Multiple Listing Service (MLS)}
Day 26 – Buyer’s signs Closing Disclosure (CD); after signing CD, buyer and bank have to wait 72 hours to then sign loan docs
Day 29 or 30 – Buyer signs loan docs; buyer wires remaining down payment amount {Depending on the county in which you are purchasing property, a loan can fund and title can record “special.” Orange County is a county that allows both of these actions to happen on the same day.}
Day 30 – Loan funds, money is transferred into seller’s account, title records, and escrow closes
Unfortunately, escrow doesn’t always close on time. That is why it is best if you as a home seller requests two to five days to stay in the property after closing escrow.
The Takeaway
The best advice for a home seller: understand the expectations of the escrow process and prepare to successfully meet them. You are not in this alone! Instead, you should rely on the professional analysis and advice of a seasoned REALTOR® to help you navigate the process. That's where we at The Swan Team come in!
If you need help preparing to buy or sell in 2018 – Contact Us Now!
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The Swan Team | OC Real Estate
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