Lisa and Jim's Northern Nevada Real Estate Blog: Northern Nevada Real Estate Escrow Surprises

Northern Nevada Real Estate Escrow Surprises

Northern Nevada Real Estate  

Escrow Surprises  

Lisa Wetzel and Jim Valentine RE/MAX Realty Affiliates 

Escrow Surprises     


It is amazing how many perspectives there are relating to a real estate escrow. Some people think an escrow must be open to have their offer accepted. Others have no idea that escrow involves professional people providing specialized services with precision under the pressure of a mixture of deadlines. Regardless of your understanding of what it is, that wonderful mysterious experience known as "escrow" can be an interesting ride in today's ever changing, ultra-cautious, "everyone is an expert" environment.

 Once an offer is accepted an escrow is opened and many things come in to play. The loan process starts. The title officers begin searching the title for the preliminary title report. Inspections are conducted and an appraisal is done if you are getting a loan. Most of the items are related to the offer and must be done to close the escrow, but are not the responsibility of the escrow officer. Because they occur after the escrow has been "opened", they are often talked about as being a part of escrow. Real estate today is not for the faint of heart, and we are seeing more escrow surprises than ever including changes in policies, procedures and protocol from various governmental and lending institutions.

 When escrow is opened emotions start to rise. Buyers and Sellers begin to visualize the effect of the closing on them. So, during your escrow your appraisal comes in $21,000 low even though you know the home is properly valued in your accepted offer. An escrow surprise. The physical inspection discovers an unknown leak that has affected the subfloor and you have an As-IS offer. Interest rates jump and you haven't locked your rate yet. More escrow surprises. Things happen during an escrow and that is where your Agent and Lender come in to play.

 Many of the issues can be mitigated or negotiated by your Agent of Lender. It is important that your Agent be involved, and that you understand what your options and each of their consequences are. The evaluation process should involve more than the surprising problem at hand. You must look at your overall situation and not react simply to the unexpected information. You may very well be able, and want, to go forward even with an appraisal that is short of the mark. Remember, value is in the eyes of the willing Buyer and Seller, not Appraiser or Agent. You might get some Seller concessions to offset some of your surprises, or not. Resolutions to escrow surprises are transaction specific. The options available to you will depend on you, the property, and the Seller's circumstances.

Our Advice: An Agent's primary function is to solve problems. When surprises occur in the escrow process your Agent will help you mitigate the issues to your satisfaction so you can either proceed to close with a situation that is acceptable to you, or that you rescind intact and look to another property. Be sure to set the transaction emotion aside and look at the facts of your situation. Once that is done sprinkle in some of the emotion and your decision should be relatively easy. Get enough information to make an informed decision.

 Don't let the shock of an escrow surprise deter you. The reason you have inspections is so you don't have post-escrow surprises. The fact that you know of the surprises before you close escrow and own the home allows you the opportunity to mitigate the circumstances to your satisfaction, financially and/or mentally.

 When it comes to choosing professionals to assist you with your real estate needs... Experience is Priceless!

Lisa Wetzel and Jim Valentine are real estate agents with RE/MAX Realty Affiliates in Gardnerville. They are short sale and foreclosure specialists and certified distressed property experts.


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Escrow Surprises 


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Lisa Wetzel & Jim Valentine
 RE/MAX Realty Affiliates
1320 US Highway 395 N.
Gardnerville, Nevada 89410
775.781.5472 - Cell
775.783.6854 - Direct
775.552.8585 - Fax
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Comment balloon 0 commentsLisa Wetzel • August 09 2013 01:10PM