You found the perfect home, your offer was accepted, and you're officially under contract. So… now what?
Welcome to the secret world of escrow — the behind-the-scenes process that ensures everything runs smoothly before you get the keys. Whether you're buying or selling, knowing what happens during escrow can reduce stress and help you stay prepared.
Here’s a look behind the curtain:
đź“„ 1. Earnest Money is Deposited
The buyer puts down a good-faith deposit (often 1–3% of the purchase price). This money is held in escrow to show they’re serious. It’s typically applied to the down payment or closing costs.
💡Tip: Buyers — make sure this is submitted promptly, or you could risk breaching the contract!
🏠2. The Home Inspection Happens
Most buyers schedule a professional inspection within a few days of going under contract. This uncovers any hidden issues — like roofing problems, plumbing leaks, or structural concerns.
🔍 Sellers should prepare by addressing obvious maintenance items ahead of time.
đź’¬ 3. Negotiations May Reopen
If the inspection reveals problems, the buyer might request repairs, credits, or a price reduction. This is your second round of negotiations — and it’s often one of the most crucial.
🤝 Having a responsive real estate agent can make or break this phase.
đź’° 4. The Appraisal is Ordered
If the buyer is financing the purchase, their lender will schedule an appraisal to confirm the home is worth the agreed-upon price. If the value comes in low, expect more negotiating — or even potential deal adjustments.
🏦 Don’t panic — a good agent can help contest a low appraisal or renegotiate terms.
đź“š 5. Title & Escrow Work Behind the Scenes
The title company ensures there are no liens, unpaid taxes, or legal claims on the home. They’ll also prep the final paperwork, coordinate with all parties, and act as a neutral third party to protect everyone’s interests.
đź“Ž This is the unsung hero of a clean closing process!
📝 6. Final Loan Approval (aka “Clear to Close”)
The buyer’s lender finalizes the loan, verifies all documentation, and issues final approval. Once that magical phrase “clear to close” is received, it’s almost time to celebrate!
✅ Buyers, don’t make big purchases or change jobs during this time — it could delay or cancel your loan.
🔑 7. Closing Day Arrives
All parties sign paperwork, funds are transferred, and the sale becomes official. The buyer receives the keys and the seller gets paid. 🎉
đź“… Pro tip: Review your Closing Disclosure ahead of time so there are no surprises.
Final Thoughts
Escrow may seem like a mysterious maze, but with the right guidance, it’s completely navigable. Knowing what to expect at each step can help reduce surprises and keep your transaction on track.
Have questions about the escrow process or need guidance through your next real estate move? Drop them in the comments or reach out — I’m here to help!
🏡
Partners Realty Group
(865) 789 – 6677
“Guiding you through every step — from contract to close with confidence.”
