Escrow
Escrow is the act of a third party holding funds for the buyer and seller in a neutral bank account with a predetermined agreement on how to disburse the funds once the transaction is complete or if it happens to fail. Escrow provides the assurance that funds are only transferred and title granted once all the requirements of the contract have been met. Usually, the seller chooses the escrow company or title company (as we refer to them in Steamboat) but the buyer can elect to if they prefer as long as they are willing to pay for the title insurance in return.
Inspection
We highly recommend hiring a local home inspector to inspect the property and all of its inclusions to give you an idea of what kind of condition the property is in before purchasing. Sometimes we even need to have certain pecialists follow up on the inspection if the home inspector points out some issues like roof, HVAC, structural, or electrical. Don’t worry, we have a preferred list of inspectors and specialists if you need recommendations. This is another opportunity for a negotiation if there are repairs or credits you’d like the seller to agree on before moving forward with the purchase. Having a great negotiator is an invaluable resource when it comes to real estate representation. Our goal is to make sure you know exactly the condition of the property you are buying and that you only pay what it is worth.
Appraisal
If the agreement is conditional upon financing, then your lender will hire a licensed appraiser to determine the value of the property by a third party. This is so that the lending institution can confirm their investment in your property is secure. This is another time where the value of a skilled negotiator may come into play. If the appraised value comes in below the agreed upon purchase price, you have yourself yet another negotiation, and an opportunity to possibly get a better deal on the property. If the seller does not agree with the price decrease, you will have the opportunity to terminate the agreement and receive your earnest money back in full.
Each transaction is different, but generally, escrow takes about 30 – 45 days and may include other due diligence such as reviewing surveys, leases, covenants, HOA docs, etc. depending on the type of property. If successful, the escrow period will end with a successful closing and your agent handing you the keys to your new Steamboat Springs property!