Escrow is canceled for a number of different reasons. The biggest one is the most avoidable- emotion.
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There are many different reasons why an escrow may cancel, on both the buyer and seller sides. However, in my experience, there are three primary reasons escrow is canceled:
1. The appraisal. Every time I work with a client, I let them know we have to sell to the buyer, to the agent, and to the appraiser. It’s important for you to know that buyers who obtain financing will have an appraisal. The bank or lender that loans them money needs to make sure they have collateral for their money. If they think you paid too much, they will let you know. When that happens, the deal may fall apart.
2. The inspection. A lot of times, buyers don’t realize how much work a home might need until their offer has already been accepted and the inspection has been completed. If a seller and a buyer can’t come to an agreement on what repairs the seller will make, the transaction will fall apart and escrow will be canceled.
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Emotion is the biggest reason escrow
is canceled.
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is canceled.
3. Emotion. This is the biggest reason that escrow is canceled. I have seen so many buyers get emotional, scared, or nervous, and simply cancel the transaction.
The message today is to understand the different reasons why escrow may cancel and how important it is to work with a good agent who understands the buying and selling processes in greater detail.
A lot of buyers have regret about canceling escrow. Working with a professional is so important because they will guide you through the transaction and any hiccups that might happen along the road. We are always here to help.
If you have any questions for us, comment below, give us a call or send us an email. We would love to hear from you. Until then, happy selling!
