When you are selling a home in El Segundo, escrow is part of the process – it ensures home buyers that their funds are secure throughout the purchase agreement contract signing and closing procedures. There are several tasks that must be completed before your home is released from escrow and actually sold. Learn more about this behind-the-scenes process to have a better idea of how long your home will be in escrow.
The first step in selling your home will be securing a purchase agreement contract with the potential buyer. This is called being in pre-escrow. You will need to find a CA escrow officer to handle the escrow process. The officer will prepare the paperwork for the sale, which typically includes a title report and property deed, as well as other vital documents.
In order to be in full escrow, the buyer must make a deposit as a down payment, also known as earnest money. The real estate agent involved in the sale will put the down payment in the escrow account. Putting a down payment on your house indicates that the seller is committed to making a purchase.
The buyer’s lender or mortgage officer will ask for an appraisal of your property. This appraisal determines an accurate value of your home, as well as the amount of money the lender is willing to let the buyer borrow for the purchase. Lenders want to make sure they are not lending more money to a buyer than the property is worth.
As a home seller in El Segundo, the next step will be to look at the disclosures mandated by the laws of the state of California. These disclosures include defects, issues, or problems with the home or property that you are aware of. For example, if you know the home is built in a flood zone or that it has had termite damage in the past, then you must disclose this information to the buyer.
While you may be nervous about including this type of information in the disclosures while in escrow, it actually benefits you. As the seller, you are being forthright about the negative aspects of the home before you begin negotiations. Everything is out on the table, so to speak, for the buyer to evaluate, so they are less likely to back out of the deal after the inspections.
At this stage, the buyer will likely request an inspection of the property. In fact, there are several types of inspections that they can conduct, such as a general contractor or foundation inspections. Based on the information ascertained in the inspections, the buyer can request repairs or to renegotiate the price of your home.
As the seller, you have a couple of options. You can agree to complete repairs before the sale goes through. Or you can reduce the price of the home based on the amount the buyer will have to pay for the repairs. Once you make a decision, the buyer has a few days to make a decision on how to proceed.
Most likely they will want to compromise or negotiate, but in some instances, the buyer will end the deal. If you agree to make repairs, you will have to do this before the process can continue. Therefore, it is best to complete the repairs as soon as possible so not to lose the buyer’s interest.
Funding the Purchase
Once you and the buyer agree on the condition and price of the home and property, it is time for the buyer to finance the purchase. The buyer will need to secure homeowner’s insurance, title insurance, and their loan for the purchase.
Closing on Your Home
If the buyer is able to get a loan, it is time to close on the house. If you are still living in the home, you will need to be moved out and clean up the place in accordance with your agreement with the buyer.
When the buyer completes the necessary transactions with the escrow officer including closing costs, the deed for the property is recorded in their name. Now the escrow process is complete and your home has been successfully sold.
Choosing an El Segundo Escrow Agency
If you are ready to take the next step in escrow, let our team of escrow officers and assistants help you. Here at Concierge Escrow South Bay, we offer door-to-door services as a neutral third-party escrow solution. Contact our office today to speak with an escrow officer for more information.