How to use the "Repair Escrow Holdback" to sell more homes.

I am sure you are familiar with a Repair Escrow Holdback.  But, just as a refresher.  It is when the title company holds "money" for repairs needed on a home that has closed.  You might be asking how does this help me sell homes, well here are my thoughts.  But first lets discuss the highlights on a Escrow Holdback:

1. you can escrow up to $5k in needed repairs.  Remember many times these repairs are needed for the home to get financed anyway.  These items can include anything but structural issues(ex foundation).  Some items that can be fixed/installed after closing are toilets, AC units, replace windows, roof(shingles), etc
2. the work must be done within 48hrs after closing and the appraiser will go back out to confirm this(usually a $150 fee for the appraiser to confirm the work).
3. you will need to get a contractor's estimate before closing for the work needed
4. This option is much Cheaper then a FHA 203k loan.  A 203k loan can take up to 60 days and has a higher rate for your buyer. 

Now how can this help you sell more homes.  Here are my thoughts:

1. I am sure you are familiar with foreclosures having "repair allowances" offered, especially on HUD homes.  But, you can also negotiate to have other Banks offer a repair allowance on any needed repairs.
2. You can have any seller set up a "repair escrow holdback".  Let's use a reasonable example for this market.   A home owner wants to sell his home, but it needs some work.  He does not have the cash to repair the home and neither does the buyer.  Now what?  At closing a "repair escrow holdback" can be setup for the repairs.  With the repair money coming from the proceeds of the sale of the home.  The home sells and everyone is happy
3. You have a buyer that loves a home, but the seller refuses or cant do any repairs.  The home needs new siding or it will not get approved by the bank for the loan.  The loan can close and the ‘repair escrow holdback" can be setup by the buyer to do the repairs.  The funds for the repairs coming from the buyer at closing. 

In this market, it is important to do whatever we can do to sell homes.  This means being creative in how we finance a deal.  This is an amazing program that I can offer since I am affiliated with a Bank.  Keep in mind, not all lenders, title companies, lawyers will allow a "repair escrow holdback".  Or they may have different rules.  So please make sure to structure the "repair escrow holdback" before making an offer.