Realestate-Ese - Carlsbad Buyers Ask What Does “Opening Escrow” Mean?

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Real Estate Agent with Solutions Real Estate CalBRE License #01490977
http://actvra.in/4YLz

Realestate-Ese - Carlsbad Buyers Ask:

What Does “Opening Escrow” Mean?

 

Things you should know in real estateThere are a number of exciting moments when purchasing a home, especially your first one.

 

Getting your pre-approval once you decide to buy (you ARE getting pre-approved, aren’t you?!) is an early one. It’s essential to know what you an afford, including your personal budget.

 

Then comes the day when you find the home you fall in love with and decide to make an offer. Waiting for the response from the seller is always a nail-biting moment, but then you get the word that you have an accepted contract.

 

And somewhere along the way you hear about “opening escrow!” So what does this mean?

 

Before moving ahead you might want to read this post about escrow here in California so you understand a bit more about how an escrow company works and what they do during your transaction. Things are done differently from state to state. Check out this video series on how to buy a home and all the important things you should know!

 

My Buyer HandbookI’m speaking from the perspective of a busy Carlsbad Realtor and not the escrow company, but essentially the opening of escrow is initiated by the listing agent, with the escrow company of choice (it might be either your choice, or more commonly in our area the choice of the seller but it depends on what is negotiated).

 

The Listing agent provides a copy of the executed Residential Purchase Agreement (RPA) – your offer - so that the escrow officer can set up an official account/file for the transaction to begin tracking all the documents, and create the escrow instructions from the RPA.

 

 

The escrow officer will provide your agent with an escrow number which identifies the specific file for tracking purposes.

 

The escrow officer will also provide the wiring instructions – the bank, bank account # the escrow #, address – so that you can wire your deposit (a.k.a. earnest money or EMD) within the time frame specific in the contract (normally within 3 business days after acceptance). Alternatively you might elect to take in a cashier’s or personal check but wiring is usually faster and more secure. NOTE - because of increasing scams, VERIFY the wiring instructions with the escrow officer over the phone before wiring.

 

Opening escrow can happen pretty quickly, and soon after the contract is signed, although it might not be until the morning of the first business date following the acceptance.

 

A number of important things happen once escrow is opened and I provide an Opening Escrow Checklist to my buyer clients so they know what to expect, in addition to having a discussion about what will follow.

 

If I can help you think through your home buying requirements, and your wish list, in light of your budget and other factors, and answer any questions about the home buying process, please give me a call at (760) 840-1360. Then we’ll get started on finding you the right home and get you into escrow in 2017!

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Topic:
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California San Diego County Carlsbad
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CALIFORNIA REAL ESTATE
Buyer Information - What Buyers Need to Know in Today's Market
Advice for Buyers
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Tags:
how to buy a house
how to buy a home
home buying tips and advice
what is escrow
jeff dowler crs
southern california relocation dude

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Rainmaker
2,124,700
Lisa Von Domek
Lisa Von Domek & Associates LLC Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Opening Escrow is always an exciting time Jeff Dowler and buyers (and sellers) are in good hands when they have you representing them!

Jan 11, 2017 06:48 PM #5
Rainmaker
18,481
Kim Fox
kimfoxhomes - Pearland, TX
Pearland Specialist

Great information! 

Jan 11, 2017 07:05 PM #6
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Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

That's a nice compliment Bob "RealMan" Timm  - it's common lingo here.

Hi John Meussner  - it was certainly new to me as well, coming from Boston. No escrow there, it was handled by attorneys. But it's a key starting point for many events

Jeff

Jan 11, 2017 10:20 PM #7
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Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Hi Dick Greenberg  - it's always interesting how different things are. We get lenders now and then that table fund.

Harry F. D'Elia - normally escrow is opened before the buyer's funds are delivered. The risk to just sending in the funds beforehand is tracking them - there is no way to allocate them to a particular transaction.

Jeff

Jan 11, 2017 10:22 PM #8
Rainmaker
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James Dray
Fathom Realty AR LLC - Bentonville, AR
Exceptional Agents, Outstanding Results

Good morning Jeff.  Most people have no idea of what goes on behind the scene.  A lot of people are involved to make sure the closing is smooth.

Jan 12, 2017 03:20 AM #9
Rainmaker
1,586,619
Ginny Gorman
Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Jeff, you have explained it so well so especially buyers from other states who don't understand this process will now get it...you are the Buyer's Agent of choice in Carlsbad.

Jan 12, 2017 04:14 AM #10
Rainmaker
3,479,400
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning Jeff.  We have some minor differences in Florida, but essentially it's the same process here.

Jan 12, 2017 05:45 AM #11
Rainmaker
589,646
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Hi Jeff Dowler I suppose that because you are "The Relocatoin Dude" you encounter people from non-escrow states more often than the rest of us. It is good to be reminded that not everyone understands just what escrow is (and isn't).

Bill Roberts

Jan 12, 2017 07:35 AM #12
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Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

Hi Jeff it is interesting to read about how the Real Estate transactions differ from state to state. I always learn something from you.

Jan 12, 2017 08:20 AM #13
Rainmaker
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Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Good morning Jeff Dowler, opening escrow is music to my ears. Great explanation!

Jan 12, 2017 08:25 AM #14
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Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

There are so many terms we use in real estate.  In Colorado, we don't Open Escrow.  We fund at the table so no need for escrow.

Jan 12, 2017 09:20 AM #15
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Jeff thank you for explaining the way opening an escrow account works and does.  We are an Attorney State here in CT so this is a topic I am not very familiar with.

Jan 12, 2017 12:42 PM #16
Rainmaker
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I hope home buyers will read this post and learn from it 

Jan 12, 2017 01:47 PM #17
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Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

We are quite a bit different here in Colorado. EM is usually given with the offer...not always. You can also have an alternative EM deadline. I'm doing a transaction like that now. We use title companys that handle the wiring of funds in addition to a title report which shows if there are any clouds on the title. 

Jan 12, 2017 02:27 PM #18
Rainmaker
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Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

Hi Jeff -- a very easy-to-understand explanation.  So much of our discussions seem to take place in a language we feel comfortable but for those who may be first time buyers --- it can be a bit confusing.  Your Realestate-ese makes those cloudy terms a lot more clear.   

Jan 12, 2017 04:20 PM #19
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Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Hi Lisa Von Domek  - it IS very exciting. Thank you for the compliment!

Thank you Kim Fox 

James Dray  - so true. Between escrow, title, and the lender there are lots of hands touching each transaction in some way.

Jeff

Jan 12, 2017 05:20 PM #20
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Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Ginny Gorman  - it can vary quite a bit from other states, and buyers need to understand. Thanks for the kind words

Gabe Sanders  - I have found that to be true in some other places, and some states are VERY different!

Bill Roberts  - very true. I have dealt with people from a number of other states who have a different process, and no escrow.

Jef

Jan 12, 2017 05:23 PM #21
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Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Thaks Noah Seidenberg  That really is the value of being here...all tht we learn from each other!

I doubt there are any people who are not excited about the prospect Beth Atalay 

It's always interesting how different the real estate world, and lingo, is from state to state Belinda Spillman 

Jeff

Jan 12, 2017 07:58 PM #22
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Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Hi George Souto  - seems to me CT is like MA is. I got used to that and it was quite an eye opener moving here to CA!

Hi Gita Bantwal  - at least those here in CA who need to know and understand it!

Jeff

Jan 12, 2017 08:27 PM #23
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Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Debbie Laity  - there are some similarities here. Some agents ask for a COPY of an EMD check but no funds normally until escrow opens

Thanks Michael Jacobs  - it's easy to forget that buyers and sellers may not be aware of the processes and lingo we know so well. I appreciate the compliment!

Jeff

Jan 12, 2017 09:57 PM #24
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