Understanding the Escrow Process: A Step-by-Step Guide for Southeast Michigan Buyers and Sellers

If you’re buying or selling a home in Southeast Michigan, you’ve probably heard the word escrow — and maybe wondered what actually happens during that time.

Escrow is simply the neutral holding period between accepted offer and closing. It protects both buyer and seller while all the necessary steps are completed. But knowing what to expect can reduce stress and help you move forward with confidence.

Here’s how it works:

Step 1: Offer Accepted
Once a purchase agreement is signed, the buyer deposits earnest money into an escrow account. This shows serious intent and secures the contract.

Step 2: Inspection Period
Buyers typically schedule inspections within the first 7–10 days. In markets like Ann Arbor and Dexter, older homes may require additional evaluations (radon, sewer scope, etc.). After inspections, buyers may request repairs or negotiate credits.

Step 3: Appraisal & Financing
If financing is involved, the lender orders an appraisal to confirm the home’s value. At the same time, underwriting reviews income, assets, and employment. (Pro tip: don’t change jobs or make large purchases during escrow.)

Step 4: Title Work & Insurance
The title company researches the property to ensure clear ownership and no liens. Title insurance protects against future disputes.

Step 5: Final Walkthrough
Typically 24–48 hours before closing, buyers verify the property is in agreed-upon condition.

Step 6: Closing Day
Documents are signed, funds are transferred, and keys change hands.

In Washtenaw County, escrow generally lasts 30–45 days, though cash deals can move faster.

Whether you're a first-time buyer in Ypsilanti or a seasoned seller in Milan, understanding escrow helps you avoid surprises.

Thinking about making a move? Register on our website for a personalized market report tailored to your neighborhood and price range. The right information makes all the difference.

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Written by LIVgreat Real Estate, your trusted Washtenaw County real estate experts.
Email: hello@livgreatrealestate.com
Website: https://livgreatrealestate.com




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