The Escrow Process Explained
By www-thehavasuhome-com September 23, 2020

Thinking about putting your property up for sale on the Havasu real estate market? It’s an excellent time to sell your home right now. High buyer demand partnered with low available inventory created a strong seller’s market in Lake Havasu City. When selling your real estate in Lake Havasu, you eventually enter escrow. You’ve probably heard this word before, but do you know what is involved in the escrow process? Let me explain.

Even if you've never bought real estate in Lake Havasu before, you've probably heard the term "escrow". But do you know what it means and how it works?

The Escrow Process for Home Sellers

What is Escrow?

When a buyer makes an offer on real estate in Lake Havasu and the seller accepts that offer, that becomes a legally binding agreement. While in escrow, a third party temporarily holds all assets involved in the sales agreement (earnest money, property, etc.) until the final closing or the dissolution of the agreement.

The amount of money used for a buyer’s earnest money fund can range anywhere between $500 to $1000 up to 1% to 3% of the purchase price. As long both parties adhere to any demands written into the sales contract, the escrow company credits the earnest money towards the buyer’s down payment. If the sale dissolves due to the buyer’s fault, this money goes to the seller. However, if the sale dissolves due to an unresolved issue that came up after the sales agreement but before closing, the buyer may receive their earnest money deposit back.

Why Do You Need an Escrow Account?

The main purpose of an escrow account is to protect both the buyer and the seller in a real estate transaction. Buyers of real estate in Lake Havasu know that the seller can’t just run off with their earnest money like a thief in the night. Plus, if something goes wrong before closing, buyers can feel safe knowing that their money will be returned to them. On the other hand, sellers have some financial compensation for taking their property off the Havasu real estate market in case the buyer decides to back out at the last minute.

Alexis Steel – 928-303-2199
Keller Williams Arizona Living Realty
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