A Recipe For Escrow Success

Since my team has a relatively higher rate of successful escrow closings, 90% versus 75% local average, I have been asked what attributes have been found most helpful to this success.

Table of Contents

How to Close Escrows More Effectively

In thinking this through, I have identified several key ingredients that are most helpful. These need to be used in combination by both sellers and buyers in order for escrows to be successful.

Good Faith

It was observed by a manager I worked with for many years that in his experience, 95% of what we do in residential real estate comes down to the good faith of both sides. Without that ingredient, no amount of legalese or paperwork can help. With good faith on both sides, the paperwork can seem almost incidental.

Honesty

If both parties base their actions on what is known to be true, the entire process has a vastly better chance of success. If a seller doesn’t disclose everything of significance, or a buyer fails to mention that they really do need to sell their current home, major hurdles lie ahead, making the process much more challenging.

Fair Mindedness

If each side makes every effort to be fair in how they deal with the other, it sets the tone for a smoother process.

Reasonableness

Only to the degree that each party keeps a practical and realistic perspective, based on reason, can the process be worked through more easily.

Flexibility

An attitude of “give and take”, and a willingness to “go with the flow” when necessary is the spirit required in order to accommodate differences that inevitably come up.

Patience

Only by taking a longer view can both parties handle the immediate challenges that show up.

Humor

Buying or selling a home is among the most emotion-filled activities that people engage in. A lighter touch and a good-humored attitude help maintain a much clearer perspective of what really is important. Both parties are much more likely to arrive at the finish line with good feelings intact.

Key Takeaways

Like any recipe people may use in putting together a meal, the key ingredients need to be used in balance and kept active when needed and to the extent necessary.

One thing is for sure: if both parties utilize all of these attributes, the probability of a successful outcome is vastly greater than it would be if some of them are missing.

Don't forget to share this post!

On Trend

Popular Stories

878 Oreo Pl., Pacific Palisades exterior
Featured
Why Leases Continue to Dominate the Palisades Market and Risks in a Changing Market

The real estate market in Pacific Palisades has undergone significant changes, with home sales dropping by almost 20% and a sharp increase in leasing activity. This shift raises critical questions about the future of the market, including whether it now favors buyers, given lower sales prices and higher interest rates. However, the leasing market remains strong despite the larger inventory, and several factors continue to limit the number of homes available for sale. As interest rates potentially moderate through 2024, the market may see more balanced activity, though the future of leasing prices remains uncertain.

Read More »
How to Sell a House
The Practice of Real Estate as a Science and an Art

Real estate is more than just transactions—it’s a profession that merges science and art. From data-driven analysis and legal expertise to building strong client relationships and creative marketing, the continuous practice required to master the craft whether you’re drawn to the analytical or the creative side, blending both aspects can elevate your real estate practice.

Read More »