Escrow

Wednesday Word of the Week

Escrow is a word often heard in conjunction with real estate.  The term has so many different uses that it is a little mysterious.  In my work as a Realtor in Chesterfield Virginia, I rarely even use the term.  Folks from California or the northeast may use the term more often, but in reference to different aspects of real estate transactions.

To begin, let’s take a look at the origins of the term.  Escrow is a term derived from an old French word escroue, which meant scrap of paper or roll of parchment.  You might recognize similarities in the English word scroll, which has the same etymology as escrow.  Originally the term referred to the parchment that a deed or promissory note would have been printed on.

http://legal-dictionary.thefreedictionary.com/Escrow+account

This site will give you an idea of how many uses the term escrow can have.

It is defined on this site as “something of value, such as a deed, stock, money, or written instrument, that is put into the custody of a third person by its owner, a grantor, an obligor, or a promisor, to be retained until the occurrence of a contingency or performance of a condition.”

Colloquially, escrow can refer to either an account, the account manager or agent, or the deed or thing of value in the account.  We will use escrow to refer to the account.

Beyond this simplified explanation, escrow can have many other nuanced applications.  It is enough for most of us to know that “escrow” implies the existence of a third party that may hold funds, deeds, or other documents, released upon the meeting of certain conditions (e.g., a home inspection).

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This Wednesday Word of the Week is brought to you by: Lynda Heithaus, serving as a Realtor in Chesterfield, VA, a Realtor in Powhatan, VA, and the surrounding areas for more than 10 years.

Click here to find out more about what I can do for you!

The Short Sale

Homes for Sale in Chesterfield, VA

Wednesday Word of the Week

(Okay, so really it's a term, but I couldn't pass up the alliteration!)

A common misconception is that the word "short" refers to a length of time.  I.E., a "short" sale should be quick.  In reality this means that the lender will accept a payment that is "short" of the full amount due on the home.

In short, the short sale is a last-ditch effort to avoid a foreclosure.  Hypothetical scenario: you have had trouble making your monthly mortgage payments, and you may have even received default notice.  You find out that you qualify for a short sale.  When the buyer purchases the home, the actually receive a discount on the home.  Basically, although the lender doesn't get the full value of the property, they get to simply cut their losses and move on.  They are in the business of lending, not selling.

The short story is that a short sale can actually be lengthy and very complicated.  There is more paperwork involved in a short sale than for a typical sale.  Still, if a buyer qualifies and the lender agrees, it can be viable option that benefits all parties involved when a seller faces some difficult decisions.

As a real estate agent in Chesterfield, Virginia I have experience helping clients with short sales and, as always, it's my number one goal to help the client navigate the sales transaction smoothly.

If you have found that you may be facing the possibility of foreclosure, you can reach out to your trusted Realtor® or real estate lawyer to explore further.  A short sale can affect the seller and may not be the best option.

Since the recent housing bust, short sales have become more common and can be a great way for the borrower and the lender to part ways amicably.

Final word?  Don't sell the the short sale short.  

(I promise, I'm not always so punny, but that was fun!)

5 Tips for a Successful Open House

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You'll be working with your agent to prepare for a stellar showing of your home when you are ready to sell. Here are a few tips to keep in mind:

1 ~ Get the word out!  Your open house can only be successful if people know it exists!  About a week before the event, post your Open House on Facebook,Craigslist, hand deliver fliers, and email people you know through work, church, clubs, etc.  Mention it every chance you get.  You just never know which connection will result in a sale!

2 ~ Be mindful of first impressions. Make sure the entrance to the home is clean, fresh, and inviting with a simple wreath, potted plants, etc.

3 ~ Share your testimonial about living in the home.  Write a little note to leave on a kitchen counter highlighting some of the things that you've enjoyed about living in the home. Your realtor can use this to share with potential buyers during the Open House.

4 ~ Have soft background music playing during the Open House, if possible.  Appealing to the senses using soft scented candles as well is a trick often used.  Be careful, though.  A candle too strongly scented may be off-putting.  Use your best judgment.



5 ~ Place directional signs.  24 hours prior to the Open House, place direction signs - the standby arrow indicating "Open House this way".  You can even decorate your signs with balloons, ribbons and other accoutrements to draw attention.