What are the chances an escrow falls through?
So what are the chances of your escrow falling out? You just opened up the escrow, you're super excited, but in the back of your mind, you're thinking, what are the chances of this falling out? Based on my 26 years of selling real estate in Los Angeles, my opinion is that when a house goes under contract and opens up the escrow, there's about a 30 percent chance that it falls out. Why? Well, there are three contingencies, which are hurdles to the sale. Number one is the inspection. Once the buyer gets beyond the inspection, I think the chances of it falling out drops dramatically to about 10 percent. The next hurdle is going to be the buyer's loan and the appraisal. Once the buyer gets loan approval and the house appraisers, the chances of it falling out drop again to about one percent; at this point, things are looking quite solid. There are unusual occurrences. Nothing is ever 100% until the escrow closes. Being prepared for and knowing how to navigate the difficulties in an escrow are your best courses of action. If you have any questions, we are always here to help.