As a property seller, you’re probably want to close as quickly as possible, which is understandable. However, there’s something called “escrow” that gets in the way. It’s the time between signing the purchase contract and closing when the seller essentially does nothing except wait. However, many sellers are just unaware of the procedure, especially how long the entire escrow process will take. That’s why we’ve put together this guide for Philadelphia house sellers — to explain escrow and how long it will take.
Overview of the Escrow and the Escrow Process
Here’s a brief definition of escrow and the escrow process in fairly technical terms…
“Escrow is a legal arrangement in which a third party holds huge sums of money or property for a period of time until a specific condition is met” (such as the fulfilment of a purchase agreement). It’s a type of insurance that’s utilised in real estate transactions to safeguard both the buyer and the seller during the home-buying process. An escrow account will keep cash for taxes and homeowners insurance throughout the duration of the mortgage.”
The escrow process typically begins when you (the seller) and the buyer have signed the purchase agreement/sales contract, “the agreement governing the sale of your home,” and have “chosen an escrow or title agent to act as intermediary in making the deal happen.” After that, here’s what typically takes place . . .
- “The escrow agent, title agent, or lawyer will start ordering or preparing title reports, preparing the property deed, and more.”
- “The buyer’s lender will begin in-depth review and processing of the loan and order a professional appraisal of your home.”
- “The buyer will (depending on what contingencies were in your contract)arrange for pest and general inspections and homeowners’ insurance, plus work on meeting any other contingencies.”
Your tasks as the seller throughout all this will include:
- Providing access to your home available when needed for inspections and appraisals
- Preparing necessary forms/documents such as disclosures and other locally required forms
- “[M]meeting any other contingencies you agreed to in your contract”
Stay “in frequent contact with your real estate and escrow professionals during this time, to ensure you stay on track,” according to industry insiders. Call (215) 385-3055 to learn more about how a Philadelphia agent can assist you with the escrow process.
How Long the Escrow Process Takes
From start to finish, the escrow process in Philadelphia usually takes 30 to 60 days. The length of time it takes can vary “depending on the buyer and seller’s agreement, who the escrow provider is, and other factors.” In an ideal world, you’d like to stay as close to 30 days as feasible.
Following are some of the factors that can influence the length of the process:
- Mortgage pre-approval
- Time required for various necessary tasks
- Gathering and preparing requisite documents
- Specific state escrow requirements
- Time required to complete the underwriting process
(“Underwriting is the process through which an individual or institution takes on financial risk for a fee. It helps set fair borrowing rates for loans, establishing premiums, and underwriting creates a market for securities by accurately pricing investment risks.”)
What Can Delay the Escrow Process
Certainly, as a seller, you don’t want the escrow process to drag on and on. It can happen, though, if there are bottlenecks and inefficiencies in the process. Some of the most notable things that can delay the escrow process and closing are:
THE INSPECTIONS
Inspections can cover a wide range of topics, including structural elements of a home, the presence of pests, mold/mildew, and environmental concerns. As a result, they may take a long time to complete. As a result, make sure they’re arranged in advance and with certified professionals.
LOCATING/PREPARING/ORGANIZING DOCUMENTS
“Finding and organizing the appropriate documents to close on a house is sometimes the most difficult part of escrow.” Before you start the process, you need start looking for and preparing the essential paperwork. Your Philadelphia agent can help you with this, as well as ensuring that the buyer has all of her paperwork in order.
SLOW, INEFFICIENT, OR INCOMPETENT ESCROW SERVICE
Because the escrow service provider is unstructured or inefficient, the escrow process may take considerably longer than you would like. So look for an escrow representative who is “quick, efficient, and constantly ready to answer your questions throughout the escrow procedure.”
If the transaction is delayed, neither you nor the buyer will face any penalty “as long as the contract has no conditions about it.” However, whatever party in the transaction creates or is responsible for the delays will have to ask the other party for more time.
How to Make the Escrow Process Go Quickly and Smoothly as
With the correct escrow provider, you won’t have to “worry about a delayed or ineffective escrow process.” Picking an escrow business known for… quick and secure escrow services is the best method to achieve the 30-day target.” And this is where your Philadelphia agent can help you out a lot.
An expert local agent can direct you to the best escrow service providers and, as a consequence, speed up the closing process. So, if you’re a Philadelphia property seller looking to expedite the escrow process and close as quickly as possible, call us at (215) 385-3055 immediately.