What is the Escrow Process Like for Home Sellers?

hey so you open up your escrow right let's assume you're going to represent the seller let's discuss what you can expect the seller to go through during the escrow process after all you're going to be the one guiding them aren't you now the first thing the seller can expect is receiving a package an escro package from the escro company listen nice and simple a $5 bill is what yeah a $5 bill it ain't $4.99 and it ain't 501 it is what it is so the Escrow Company is going to send an escrow package to the seller well then that escrow package for the seller are escro instructions now escro instruction is simply un form all the items that were agreed between the buyer and the seller got it nice and simple they both agreed to a million dollar purchase boom it's right there in the escrow instructions the seller agreed to give the buyer a $5,000 credit boom it's right there in the escrow instructions got it not a big deal all the particulars of that contractor right there where yeah on those escro instructions another thing that's going to be in that escrow package for the seller is going to be the uh grant deed now the seller mind you is going to be granting he's going to be granting hence the word grant deed he's going to be granting this deed to the buyer so he's got to go get this grant deed signed in front of a notary a notary is got to make sure this person who's giving this house away has the right to do so and one last thing that's in that escrow package in that escrow instruction package on the seller side is the payoff amount if the seller has a mortgage on that house that he is selling and the escro escro company wants to know who are we paying off on your behalf Mr or Mrs seller got it boom done step two here we go disclosures now that's a biggie in fact we have a great video on disclosures disclosures disclosure discl closures that's the seller's way of letting the buyer know everything there is to know about the house in writing on forms whatever state you're in please emphasize to your seller disclose disclose disclose do not hide any information that's pertinent to this house last thing you want is a legal battle with the buyer man nobody wants to battle with the buyer so disclose fill at all the paperwork not you the seller seller fills at all the disclosure forms and hands them over to who to the buyer and the buyer gets to decide themselves hey I want to continue with this girl or no based on what you just gave me Mr seller I'm checking out I don't want this house after all let's go straight to step three the buyer has a right to inspect the house that's crucial for the seller right he's going to have a guest in his house the seller's going to have a guest the guest being the buyer's inspector into the house now what do you do when you have guest in your house yeah don't you clean it up prepare it make sure it looks pretty good yeah well I want your seller to do the same damn thing before that inspector comes on behalf of the buyer you want that house to be prepared have it clean encourage the seller to prep prepare the house before anybody enters it whether it be the inspector the appraiser the buyer again anybody prepare the damn house it's crucial step four another visitor is going to come into the house Mother of Mercy how many visitors are we going to have the appraiser is going to come to put value on the house on behalf of the buyer so again the house needs to be prepared meaning it needs to be in great condition just as the inspection was a very extremely crucial step in the process for the seller so is the appraisal because the appraisal is going to give the value of the property and if the value of the property isn't there no loan for the buyer and if there's no loan for the buyer there's no money there for the buyer to pay the seller so guess what let's pump the brakes a little bit the appraisal is crucial prepare the house make it look valuable make it look pristine let's go to the next one request for repair now what is that the inspector and the appraiser may have called out what we call conditions saying you know what this house has value we like it however there are few conditions that we don't like the broken banish are going up the stairway that's dangerous the mold underneath the kitchen sink that's not very healthy to have so what happens the buyer says well Mr seller would you mind do me a favor and based on the inspection report and based on the appraisal would you please repair these items and it's done on a written form not a big deal seller receives it seller receives it and seller says well hey man I told you the house is sold as is or hey man sure that sounds reasonable I'll I'll repair it for you no worries so step five request for repairs and that's where the negotiations continue that's the buyer having the opportunity to request for the seller to repair some items in the property based on what the inspector said and based on what the appraisal said seller says yeah I'll do it seller says no I won't do it or seller says I'll meet you halfway how about them apples number six contingency removal the day has come for the buyer to remove all their contingencies contingencies being the buyer's safety net right the buyer said listen Mr seller I'll buy your house only if only if only if only if it meets my inspection criteria only if the appraiser says yeah it's worth it well there comes a point where the seller says hey we got to remove this net I want you to be all in Mr buyer I want you all in so he says Mr buyer Mrs buyer the day has come remove your contingencies and I don't want any verbal nonsense I want you to do it in writing why because talk is cheap Mr Mrs buyer sign off you're removing your contingencies that you're going straight forward now that protects your seller once contingencies are removed the seller at least has the right possibly to the buyer's deposit if they choose to cancel after removing their contingencies after removing that safety net they're putting their deposit at risk for the seller got it so that's an important factor probably one of the biggest factors in protecting the seller now that the seller say wow fire is all in commitment let's do this so decides well I got nothing to lose now I might as well start repairing the house just exactly the way they requested they want me to fix that banister fine I'll fix it now cuz I know they're all in got it a commitment does a lot for the seller that commitment shows them that they have nothing to worry about because they have that deposit to fall back on got it so once the contingency removed it's time to repair the property just the way the seller and buyer agree to on that request for repair number eight house is in great condition now just the way the buyer wants it to be the buyer has one last chance to look at the house and to review these repairs were they done appropriately so the seller has a right to say you know what they are go ahead and take a look just let me know when you're coming by right buyer goes in there takes a look at the house and says yeah this is my final walkth through what we call a verification verification of property condition fire goes in there and verifies the the condition of the property $5 bill is a $5 bill Bill verification of property condition why goes in there and verifies the condition of the property and the seller says go right ahead I have all the confidence in the world that everything was done according to your standards take a look that leads us to The Next Step which is Step nine closing the deal happy day it's a fantastic day hallelujah what does that mean well it entails the seller going into escrow and signing on the dotted line saying yeah I'm good with this itemized deduction and and you telling me escrow what my profit is going to be escrow thank you very much for handling this uh this transaction you've been so professional ESC girl give them some thanks give them some uh some Kudos on their job well done and say hopefully we'll see you again soon if necessary the seller goes in there and signs off on the deadline agreeing to their profit or possibly rarely a loss on the sale of the property that leads us to number 10 and what's number 10 yeah the seller collects this check from escro and says thanks again escrow gives him a big fat hug goes off into the sunset cashes the check and moves on with life so that's it you did it 10 steps to closing a deal with your seller the esro process congratulations hope this helps you outy listen do me a favor we discussed the process of escrow for the buyer the video right here is fantastic check out this video it's the escrow process for the buyer If You Ever represent a buyer check it out it'll show you what the buyer has to go through hope this uh made your day we'll see you next week

Channel: US Realty Training

Views: 2,365

Keywords: What is the Escrow Process Like for Home Sellers?, home seller escrow process, escrow process, escrow, process, home, seller, real estate home seller escrow process

Id: IaTPQ14lKeg

Length: 7min 23sec (443 seconds)

Published: Wed Oct 18 2023