When selling a home, the escrow process can be one of the most daunting tasks for homeowners. The escrow process is the period of time between the acceptance of a purchase agreement and the closing of the sale. During this period, the buyer and seller will work to complete all the necessary steps to transfer ownership of the property. While this process can take a long time with a traditional MLS listing, things are much faster with a direct sale to Gravitas Property Group.
In this blog post, we’ll walk you through the typical steps of the escrow process and what homeowners can expect when selling a home in Frisco. We’ll also discuss how a direct sale to Gravitas Property Group can make the process much faster and less stressful.
Step 1: Opening Escrow
The initial escrow process begins with the opening of escrow, a crucial step in ensuring a smooth and secure real estate transaction. This process is typically initiated by one of the real estate agents in the transaction submitting a copy of the signed purchase agreement to the escrow/title company. Once the escrow company receives the executed purchased contract, they will open an escrow file and send out any necessary instructions to both parties on what they need to do next.
Step 2: Title Search and Insurance
After opening escrow, the next step in the escrow process is to conduct a thorough title search. This step is critical because it ensures that the property’s title is clear of any legal issues that could complicate or prevent the sale. The escrow company collaborates with a title company(often one in the same) to perform this search, which involves reviewing public records to confirm that the seller has the legal right to transfer ownership and that there are no outstanding liens, encumbrances, or claims against the property. If any of these items are present, they will have to be cleared for a transfer of ownership can take place and the title company to issue a title policy.
Once the title search is complete, the title company will issues a title commitment because there are no issues or one that has issues in Schedule C that must be cleared in order to issue the title policy to the buyer. This insurance protects the buyer and lender from potential losses due to title defects or disputes that may arise after the sale is finalized. By securing a clear title and title insurance, both the buyer and seller can proceed with greater confidence that the transaction will be legally sound and free of unexpected complications.
Step 3: Home Inspection and Repairs
While the title search and insurance process is completed, the critical step while the property is in escrow is the home inspection. The buyer will typically arrange and hire a licensed inspector to identify any potential issues or defects in the property that may need attention before the sale is finalized. A licensed home inspector will thoroughly examine the property, including its structural integrity, electrical systems, plumbing, HVAC, and other key systems components.
The inspection report will outline any problems found, ranging from minor issues to significant repairs that could impact the property’s value or safety. Based on the findings, the buyer may request that the seller address these issues before closing. The seller can choose to make the necessary repairs, offer a credit to the buyer to cover the cost of the repairs, or negotiate a reduction in the sale price. Generally, issues such as cosmetic repairs or other easily visible items typically should be taken into consideration when making the initial offer to the seller. A seller generally will not agree to as they are items that should have easily been seen when a prospective buyer is walking a property before even making an offer. Although an inspector will put in the report any issues they discover or observe, the main goal is to learn about any unknown issues or conditions on the property.
This step is essential because it ensures that the buyer is fully informed about the condition of the property and that any major concerns are resolved before the sale is completed. It also helps prevent potential disputes or complications from arising later in the transaction.
Step 4: Appraisal
A licensed appraiser will assess the property, considering various factors such as the overall condition of the home, its location, amenities within the home, and comparable sales in the area. The appraiser will also measure the home’s square footage to verify it is of similar size to the properties in the comparable sales list. The appraiser will then provide a report detailing their estimate of the property’s value.
If the appraisal matches or exceeds the agreed-upon contract sales price, the transaction can proceed as planned. However, if the appraisal comes in lower than the sale price, it can create a potential issue. In such cases, several outcomes are possible to include price renegotiation, repairs, increased down payment, or even sale termination. Occasionally, a lender required repair can be the down fall of a transaction. However, it is more common for a property to miss value on the appraisal.
Missing value is why the appraisal is such a crucial piece in ensuring that the buyer is not overpaying for the property and that the lender is not providing more funds than the property is worth. It also serves as a final checkpoint to verify that the transaction is fair and equitable for all parties involved.
Step 5: Contingencies
During the escrow process, there may be contingencies that need to be met before the sale can be completed. A contingency is a condition that must be met before the sale can go through. For example, the sale may be contingent on the buyer obtaining financing or on the seller making certain repairs. The escrow company will ensure that all contingencies are met before the sale can be completed.
Step 6: Closing
Once all the steps of the escrow process have been completed, the sale can be closed. This involves the transfer of ownership from the seller to the buyer and the exchange of funds. The escrow company will ensure that all necessary paperwork is signed and that the funds are transferred.
As you can see, the escrow process can be lengthy and stressful for homeowners. However, there is a faster and less stressful option available – a direct sale to Gravitas Property Group.
Why Choose Gravitas Property Group?
With a direct sale to Gravitas Property Group, there is no need to go through the escrow process. Instead, Gravitas Property Group will make an offer on your property and can close the sale within days. This means that you can avoid the stress and uncertainty of the traditional escrow process and get cash for your property quickly.
In addition, a direct sale to Gravitas Property Group offers several other benefits. For example, you can avoid the need to make repairs to your property or stage it for showings. Gravitas Property Group will buy your property as-is, regardless of its condition. This can save you time and money and make the process much more convenient.
Another benefit of a direct sale to Gravitas Property Group is that there are no real estate agent commissions or fees to pay. When you sell your property through a traditional MLS listing, you will typically need to pay a commission to the buyer’s agent and your own agent. This can add up to thousands of dollars in fees. With a direct sale to Gravitas Property Group, there are no commissions or fees to pay, which means that you can keep more of the sale price for yourself.
Finally, a direct sale to Gravitas Property Group offers certainty and peace of mind. When you sell your property through a traditional MLS listing, there is always the risk that the sale will fall through during the escrow process. This can be devastating for homeowners who are counting on the sale to go through. With a direct sale to Gravitas Property Group, you can be confident that the sale will go through as planned and that you will receive cash for your property.
The escrow process can be a stressful and time-consuming experience for homeowners. However, there is a faster and less stressful option available – a direct sale to Gravitas Property Group. With a direct sale to Gravitas Property Group, you can avoid the uncertainty and stress of the traditional escrow process and get cash for your property quickly. If you’re looking to sell your property in Frisco, contact Gravitas Property Group today to learn how we can help you. (817) 646-5515