Selling a home in Phoenix can feel overwhelming once the ins and outs of the escrow process begin. This crucial phase bridges the gap between accepting an offer and finalizing the sale, requiring careful attention to detail from both sellers and buyers. However, for those considering a direct sale to BE Buys, the process can be streamlined, eliminating the traditional complexities.
In this blog post, we’ll go through the common steps of the escrow process and what homeowners should expect when selling a home in Phoenix. We’ll also talk about how selling directly to [business] might speed up the process and reduce stress.
Step 1: Opening Escrow
Escrow commences when either the buyer’s or seller’s real estate agent forwards the signed (executed) purchase agreement to the escrow company. This prompts the escrow company to open a file and issue instructions to both parties (based on the contract’s instructions), marking the beginning of the process. There also needs to be monetary consideration for it to be a legal escrow in Arizona. Typically, that means the earnest money is deposited and held in the title companies escrow account until closing.
Step 2: Title Search and Insurance
Next, the assigned escrow agent will conduct a thorough title search and simultaneously secure title insurance. This ensures the property’s title is unencumbered, free from any liens or other unforeseen issues arising from the chain of title (history of ownership). Collaborating with a title company, the escrow company meticulously combs through the property’s title, providing assurance to all involved parties that there will not be any issues after the deed is signed over at closing.
Step 3: Home Inspection and Repairs
Following the title search, the buyer or buyer’s agent typically schedules a home inspection to identify any underlying issues with the property’s condition. Depending on what is discovered, the seller must address these concerns through repairs or by offering appropriate credits to the buyer, ensuring the property meets expectations.
Step 4: Appraisal
Once the inspection process is complete, the buyer’s lender often commissions a property appraisal to confirm its value with the agreed-upon purchase price. Should the appraisal fall short, negotiations may ensue to reconcile the difference or address necessary improvements to bring the property up to value. Banks do not want to be underwater on their loan value because it subjects them to unmitigated risk and will also cause them to fall short of Fannie & Freddie Mac lending guidelines.
Step 5: Contingencies
Throughout the escrow process, various contingencies may arise, requiring resolution before finalizing the sale. These contingencies could include securing financing or addressing specific repair requests. An example of the most common unforeseen contingencies that arise is usually from FHA loans. There are certain property requirements that must be met, i.e., all kitchen outlets must be GFCI-certified. No matter the list of contingencies, big or small, the escrow company ensures that all conditions are met, clearing the way for a smooth transition to closing.
Step 6: Closing
Upon satisfying all the escrow requirements, the sale proceeds to the closing table. At closing, ownership is transferred to the buyer (the deed is signed over), and all funds are exchanged and balanced on the settlement statement (HUD). The escrow company orchestrates the final paperwork and, once signed, releases the file to the county recorder to officially complete the transaction.
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 BE Buys.
Why Choose BE Buys?
The entire escrow process is not required for a direct sale to BE Buys. Instead, BE Buys will make an offer on your house and close the transaction within a week if necessary. This means you can skip the stress and uncertainty of the typical escrow process while receiving cash for your property ASAP.
In addition, a direct sale to BE Buys has multiple advantages. For example, you can avoid having to fix or stage your property for showings. BE Buys will purchase your home as-is, regardless of condition. This can save you time and money while making the procedure much more convenient.
A direct sale to BE Buys also eliminates the need to pay real estate agent commissions or fees. When you sell your property through a regular MLS listing, you will usually have to pay a commission to both the buyer’s agent and your own agent. This can cost thousands of dollars in fees (standard is 6% of the sales price). There are no commissions or fees to pay when selling directly to BE Buys, so you can keep a larger portion of the sale price.
Finally, direct sales to BE Buys provide certainty and peace of mind. When you sell your property through a standard MLS listing, there is always the possibility that the transaction will fall through during the escrow process. This can be upsetting for homeowners who expect the deal to go through. With a direct sale to BE Buys, you can be confident that the transaction will proceed as planned and that you will receive cash for your property.
Homeowners often find the escrow process frustrating and time-consuming. However, there is a faster and less stressful option: a direct sale to BE Buys. With a direct sale to BE Buys, you can avoid the uncertainty and stress of the typical escrow process while receiving cash for your home swiftly. If you want to sell your property in Phoenix, contact BE Buys soon to see how we can help. 480-237-9387