What To Expect During Escrow

What To Expect During Escrow

For a lot of first time homebuyers, the whole process of transferring ownership during escrow can feel like a total blur. There are so many different documents to sign and questions being ask that it can often be extremely overwhelming. As a full-time Real Estate Agent in Queen Creek, one of the most common questions I get from new buyers once we are under contract is ‘What happens next’? 

Inspection Period (Days 1-10)

Day 1 of escrow is the date in which the contract was executed (offer accepted), not to be confused with the date the offer was written. Keep in mind, this date does not have to fall on a business day. Starting on the date of acceptance, you’ll have the first 10 days of escrow to schedule an inspection with an inspector, complete your buyer due diligence on the area/neighbors/utilities, etc., and present your requested repairs to the seller.

Repair Negotiation

Per the ADRE contract, the seller has 5 days to respond to the buyer’s repair requests, which are to be sent within the first 10 days of escrow. For example, if the buyer gives notice of their requested repairs on Day 7, the seller will have until Day 11 to respond.

Appraisal

For most financed offers, an appraisal will be required by the lender. The appraisal can be ordered at any time during escrow; however, it is typically ordered after buyer and seller agree on the repairs. This is because appraisals costs money, and there is no reason to pay for one if buyer and seller cannot reach an agreement on the home’s repairs.

Final Walkthrough / Signing Docs With Title

Sometime within 3 days of close of escrow, buyers will have a chance to walk through the home one more time to ensure the property is still in the same condition and all agreed upon repairs have been completed.

Your title company will schedule a time with you to sign docs once they are ready. This will happen after all negotiations have taken place and the closing date approaches.

Close of Escrow

Once all contract terms are finalized, docs are signed, and the walkthrough completed, there’s not much left for the buyer and seller but to wait for closing. Typically during this time, the lender is finalizing the loan. If all goes as planned, funds will be released and title will record the transfer of ownership on the closing date. Once the deed has been recorded with the county, escrow is officially closed.

For more information, check out my blog What is Escrow and Why Is It Needed?

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–April Anderson