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After a buyer has agreed to purchase a home from a seller, the escrow process begins. This is designed to make sure that all the necessary conditions and obligations are met so the transaction can proceed smoothly.

Purpose of Escrow
Escrow is designed to protect all the parties involved in a real estate transaction from risk and to ensure that everyone is acting in good faith. The seller will need to prove that he or she owns the house and that its not subject to any liens from third parties that could prevent or complicate the sale. The buyer will need to prove that he or she has the funds necessary to buy the house or the financial means to obtain a mortgage.

What Happens During the Escrow Process
Escrow is generally a mandatory part of a real estate transaction that starts after the seller accepts the buyers offer to purchase the house. The law related to the escrow process varies by state, but in general an escrow agent, who is a neutral third party with no vested interest in the transaction, is assigned to handle the process and to protect each involved party from risk. The escrow agent is paid a fee that represents a small percentage of the sale price. This fee can be paid by the buyer, the seller or both.

Earnest money is a small percentage of the sale price that the buyer provides to demonstrate that he or she is serious about buying the house. In exchange, the seller takes the house off the market. After the sale is completed, the earnest money is applied to the buyers down payment. Until the sale is finalized, the earnest money and the house are both considered to be in escrow.

The escrow agent collects the sales contract, earnest money and contingencies related to insurance, inspections, repairs and any other requirements that must be met to finalize the sale. These items are placed in an account and stay there until the buyer and seller have fulfilled all their duties required by the terms of the contract.

Once all parties have met their obligations and all the necessary documents have been signed, the mortgage lender pays the money due to the seller. Then the deed is recorded in the name of the new owner, escrow closes and the buyer can move into the house.

Understand How Escrow Works
The escrow process is designed to protect both the buyer and the seller in a real estate transaction. It allows each party to be confident that the other is acting in good faith and meeting the requirements set forth in the contract. Escrow also allows each party that is due payment to receive the appropriate amount in a timely manner. If you have any questions about the escrow process as it relates to your specific situation, talk to your real estate agent.

Published with permission from RISMedia.

It can be easy for the exterior of your home to look a bit worn after just a few years. Maintenance tasks that need to be taken care of could get put off due to time constraints or the fact that you don’t necessarily notice potential trouble areas every day. If you find yourself in this situation, consider these five outdoor fixes that’ll have your home in tip-top shape in no time:

Clean Your Gutters. Depending on where you live, your gutters may need a lot of help. Take a few minutes to do a quick overview of the condition of your gutters”cleaning them out is a great first step to making them more efficient in getting excess water away from your home. You should also make sure that all the connections are in good condition and that downspouts are secure. Finish up by spraying the gutters down with a quick power wash to restore them to their original color.

Dress Up Your Door. Your front door should look just like that”a front door. Make sure guests don’t have to guess where it is or fight their way through overgrown plants. Instead, dress up your front door and turn it into a welcoming entryway. Consider repainting it with a fresh coat of paint or hanging a seasonal wreath. You could also add some touches like a welcome mat or potted flowers underneath the doorbell. Dressing up your front door is an easy way to add appeal to your home.

Add Some Mulch. Is your yard looking tired? One of the best ways to instantly provide a fresh, polished look to your homes exterior is to add new mulch to flower beds and around trees. Mulch also offers plants moist insulation to keep them hydrated and helps deter weeds from popping up.

Spruce Up Your Mailbox. You may not think that people notice your mailbox, but it can be one of the first things guests see when they drive up to your home. Make sure your mailbox is secured in the ground and isn’t leaning to one side. Spruce it up by giving it a fresh coat of paint, personalizing it with your last name or adding some flowers around the bottom of the stand.

Install Window Boxes. Adding a few window boxes underneath your front windows is a great way to instantly add interest and natural beauty to your homes exterior. Choose from a wide variety of window box styles and colors that’ll complement your home. Plant flowers that’ll add pop like daisies, marigolds, or even wave petunias that’ll cascade over the side of the box.

Fixing up your homes exterior doesn’t have to become a week-long project. These and several other quick fixes could instantly add beauty to the outside of your home.

Source: Rachael Baihn/RISMedias Housecall

Published with permission from RISMedia.

These six types of striking ceilings will set your home apart!

Beamed Ceiling

Exposed beams provide a distinguished look while also making the space feel larger.

Cathedral Ceiling

These ceilings soar high above and allow more natural light to pour into the home.

Barrel Vaulted Ceiling

Rather than meeting at a fixed point, barrel vaulted ceilings have a rounded arch.

Coffered Ceiling

Coffered ceilings consist of sunken panels that are framed by beams to create a grid-like pattern.

Domed Ceiling

Perfect for a breathtaking foyer, domed ceilings add instant architectural drama.

Tray Ceiling

Tray ceilings allow a room to feel more open by creating a sense of depth.

Published with permission from RISMedia.

Published with permission from RISMedia.

When a prospective buyer has found the right house and agreed to a price with the seller, the buyer can make a contingent offer. That means that the transaction will proceed, as long as specific contingencies, or conditions, are met. Those contingencies are essential to ensure that each party is aware of all relevant facts and able to make an informed decision. If the contingencies are not met, the would-be buyer can decide not to purchase the house and keep the earnest money provided.

Inspection
The most important contingency from the buyers perspective is the home inspection. A professional inspector will thoroughly check the house for any problems that may not be readily apparent. An inspection should cover everything from the roof to the electrical wiring, plumbing, foundation and possible mold.

If an inspection discovers any cause for concern, the problem will need to be addressed. The buyer can ask the seller to fix the issue as a condition of sale, or the seller can decline to make repairs but agree to lower the sale price. If the parties are unable to reach an agreement, the buyer can decide not to purchase the house and walk away.

Appraisal
An appraisal is another contingency thats designed to protect the buyer. An independent third party will calculate the current fair market value of the house. If the appraised value is less than the asking price, the buyer can renegotiate with the seller or walk away.

If the buyer loves the house and is willing to pay more than the appraised value, obtaining a mortgage may be problematic. A lender will approve a loan up to a percentage of the appraised value. If that number is less than the sale price, the buyer will have to make up the difference with a larger down payment.

Mortgage
If the buyer isnt paying cash, an offer will be contingent on mortgage approval. A buyer may think he or she will qualify, but a lender can reject an application for a variety of reasons. A buyer whos pre-approved for a mortgage may be unable to complete a purchase if the appraised value turns out to be lower than the sale price and the buyer is unable to come up with enough money for a bigger down payment.

A buyer whos unable to obtain a mortgage can walk away. This contingency also helps the seller avoid waiting months for a buyer to get approved for a mortgage and having to turn down other offers in the meantime.

Discuss Contingencies with Your Agent
After a buyer and seller have agreed on a sale price, its natural to want to move quickly, but contingencies are designed to protect both parties. Whether youre buying or selling a house, discuss the importance of a home inspection, appraisal and mortgage approval, as well as the potential ramifications of unforeseen problems in any of those areas, with your real estate agent.

Published with permission from RISMedia.