Most people know that escrow agents are a necessary part of big financial transactions, but how does it work? Well, an escrow agent holds any money that needs to be collected and makes sure that all parties involved in the sale get what’s rightfully theirs. Did you know escrow companies are impartial and can help prevent or resolve conflicts quickly, without wasting money on lawyers? But before you hire an escrow company to oversee a major transaction, there are a few things you should consider first.
Here are a few things to think about:
1) Experience
How much experience does the company have? When hiring an escrow company, there are a few questions you should ask to help narrow down your best options. One of the first things you need to know is if they’ve been in business for years, or if they’re just starting out. If your transaction is more unique, like buying a piece of art from another country, it’s important to know whether they’ve dealt with exchanges like yours in the past.
2) Check Better Business Bureau
The most important thing you need to find out is if the company is reputable. Better Business Bureau is a good place to check for reviews on escrow companies to see if there have been any complaints filed against them. You can view what other people have said about the company and their experience with them. It’s not always an easy process to find an escrow company you can trust, but it’s certainly worth the extra time and effort, as posing as a trusted third party poses an opportunity for fraud.
3) Review Online Testimonials
Another option is to look up online reviews and testimonials. This is easier than ever before now that everything is immediately available online. It’s worth looking at reviews to see what other people are saying about the escrow company because it shows how they performed in a variety of situations. If you’ve never worked with a reputable agency before, this is one of the best ways to get a clear picture of their customer service and overall work ethic.
4) Billing
Another thing you’re also going to want to figure out is if they charge any fees, such as a processing fee, and how billing is handled. In most situations, escrow companies bill a percentage of the total transaction. Many people are uncomfortable when it comes to discussing money, but be sure to ask questions about billing procedures so you don’t walk away with any surprising costs.
Talk to an Escrow Agent
We hope you feel more confident about spotting the best escrow companies for your needs after reading this blog post. But if you still have some questions, we’re here to help! Give us a call at Bay Area Escrow by dialing (925) 831-9099, or send an email by using this link. Our friendly team is happy to answer any and all questions you have.