Escrow, Inspections and Appraisals

What is Escrow?

Escrow is a neutral third party that holds onto funds and property deeds during a real estate transaction. It’s used to protect both the buyer and the seller during the closing process.

What happens during Escrow?

During escrow, the buyer’s funds are placed into a secure account and the property deeds are transferred from the seller to the buyer. The escrow company will ensure that all conditions of the sale have been met before releasing the funds and transferring ownership of the property.

What should you expect during Escrow?

During escrow, you should expect to sign a number of important documents and provide any necessary information to the escrow company. You should also expect to receive regular updates from the escrow company regarding the status of your transaction.

What is an Appraisal?

An appraisal is an estimate of the value of a property. It is used to determine the market value of a home and to ensure that the mortgage amount is in line with the value of the property.

Why are Appraisals Important?

Appraisals are important because they give lenders an understanding of the value of the property they are financing. This information helps them to determine the risk involved in lending money for the purchase of the property.

What should you expect during an Appraisal?

During an appraisal, the appraiser will visit the property and take photos, measurements, and notes about the property’s condition and features. The appraiser will also gather information about similar properties in the area to determine the market value of the property.

Escrow, inspections, and appraisals are important steps in the real estate transaction process. By understanding what these terms mean, why they’re important, and what to expect during each step, you can ensure that your transaction goes smoothly and that you make an informed decision when buying or selling a home.