When selling a home, the escrow process can be one of the most daunting tasks for homeowners. The escrow process is the period of time between the acceptance of a purchase agreement and the closing of the sale. During this period, the buyer and seller will work to complete all the necessary steps to transfer ownership of the property. While this process can take a long time with a traditional MLS listing, things are much faster with a direct sale to Northwoods Property Resources.
In this blog post, we’ll walk you through the typical steps of the escrow process and what homeowners can expect when selling a home in Milwaukee. We’ll also discuss how a direct sale to Northwoods Property Resources can make the process much faster and less stressful.
Step 1: Opening Escrow
The first step in the escrow process is opening escrow, which marks the official start of the transaction’s closing phase. In Milwaukee, this is typically initiated by the buyer’s real estate agent, who submits the signed purchase agreement to a licensed escrow company or attorney. The escrow company then opens a file and provides both parties with detailed instructions on their responsibilities, including deadlines for inspections, financing, and document submissions. In Wisconsin, escrow procedures can vary slightly based on whether the sale involves a traditional lender-financed transaction or a cash buyer. It’s important for both buyers and sellers to review the escrow instructions carefully, as missing key deadlines can delay or even jeopardize the sale.
Step 2: Title Search and Insurance
The next step in the escrow process is conducting a title search and securing title insurance. This ensures that the property’s ownership history is free of issues such as unpaid taxes, legal disputes, or unresolved liens that could complicate the sale. In Milwaukee, title searches typically go back several decades to verify a clear chain of ownership. The escrow company works closely with a title company to conduct a thorough search, and if any red flags arise—such as undisclosed heirs or outstanding contractor liens—these must be resolved before the transaction can proceed.
Title insurance is then obtained to protect both the buyer and lender (if applicable) from any unforeseen claims to ownership after the sale. Wisconsin follows an owner’s policy and lender’s policy structure, where buyers often purchase an owner’s title policy for long-term protection. Home sellers should also be aware that unresolved title issues can delay closing, so it’s advisable to review property records early in the selling process to avoid last-minute complications.
Step 3: Home Inspection and Repairs
Once the title search and insurance are in place, the next step is the home inspection. In Milwaukee, home inspections are a critical part of the process, as Wisconsin law requires sellers to disclose known defects through a Real Estate Condition Report (RECR). However, an inspection can uncover additional issues that may not have been previously disclosed.
A licensed inspector will evaluate the property’s structural integrity, electrical systems, plumbing, HVAC, and roofing. If significant issues arise—such as foundation cracks or mold—buyers may request repairs, a price reduction, or a seller credit to cover the costs. Some sellers opt for a pre-listing inspection to identify potential problems in advance and make necessary repairs before listing. This proactive approach can help prevent last-minute negotiations that could delay or derail the sale.
Step 4: Appraisal
After any necessary repairs have been completed, the buyer’s lender will usually order an appraisal to assess the fair market value of the property. In Milwaukee, appraisals are conducted by licensed professionals who analyze factors such as recent comparable sales (comps), property condition, location desirability, and market trends.
A low appraisal can create hurdles in the transaction. If the appraised value falls below the agreed sale price, lenders may refuse to approve the full loan amount. When this happens, several options exist:
- The seller may lower the price to match the appraised value.
- The buyer may cover the difference in cash.
- The seller and buyer may negotiate a compromise, such as offering closing cost assistance.
- The buyer may request a reconsideration of value, providing additional market data to challenge the appraisal.
For sellers, preparing for an appraisal by documenting recent renovations, upgrades, and neighborhood improvements can help support a higher valuation and prevent last-minute financing issues.
Step 5: Contingencies
Throughout the escrow process, certain contingencies—or contractual conditions that must be met before closing—play a crucial role in protecting both buyers and sellers.
Common contingencies in Milwaukee home sales include:
✔ Financing Contingency – Ensures the buyer can secure a mortgage loan; if denied, they can walk away without penalty.
✔ Inspection Contingency – Allows buyers to renegotiate or withdraw based on the findings of the home inspection.
✔ Appraisal Contingency – Protects buyers if the home appraises for less than the purchase price.
✔ Title Contingency – Ensures a clear and marketable title before the sale is finalized.
For sellers, failing to meet contingencies—such as delaying agreed-upon repairs—can lead to contract cancellations or delays. To avoid last-minute surprises, sellers should stay proactive, respond promptly to requests, and consult their real estate agent or attorney on potential roadblocks. In competitive markets, sellers may see buyers waive certain contingencies, but this comes with risks for the buyer.
Step 6: Closing
After all contingencies have been met and the buyer’s lender finalizes the loan, the escrow process moves to closing. This final stage includes:
1️⃣ Final Walkthrough – Buyers typically conduct a last inspection to ensure the property is in the agreed-upon condition.
2️⃣ Signing Legal Documents – Both parties must sign various legal and financial documents, including the HUD-1 Settlement Statement, deed transfer paperwork, and mortgage agreements (if applicable).
3️⃣ Payment & Fund Transfers – The buyer submits their down payment and closing costs, while the lender wires the remaining funds. The escrow company disburses the sale proceeds to the seller, minus any deductions like outstanding mortgage balances, agent commissions, and property taxes.
4️⃣ Title Transfer & Recording – The escrow company facilitates the transfer of ownership, which is then officially recorded with the Milwaukee County Register of Deeds.
Sellers should note that Wisconsin follows a “wet funding” process, meaning all funds must be fully cleared before closing is finalized. This can sometimes lead to minor delays in receiving proceeds, so sellers should coordinate with their escrow agent to ensure a smooth process.
As you can see, the escrow process can be lengthy and stressful for homeowners. However, there is a faster and less stressful option available – a direct sale to Northwoods Property Resources.
Why Choose Northwoods Property Resources?
For homeowners looking for a faster alternative, a direct sale to Northwoods Property Resources can simplify the process significantly. Unlike a traditional real estate sale, which involves an escrow period lasting 30-45 days on average, a direct sale can close within a matter of days since there are no lender approvals, appraisals, or buyer contingencies involved.
However, while direct sales eliminate many of the complexities of escrow, they still require essential legal steps, such as title verification and a closing process facilitated by a title company or attorney. Additionally, homeowners should be aware that direct sale offers are typically below market value, as companies like Northwoods Property Resources assume the risk and cost of necessary repairs.
For sellers prioritizing speed and convenience over maximizing their home’s sale price, this option provides a reliable solution. However, homeowners should compare multiple offers and review all contract terms carefully before proceeding with a direct sale.
In addition, a direct sale to Northwoods Property Resources offers several other benefits. For example, you can avoid the need to make repairs to your property or stage it for showings. Northwoods Property Resources will buy your property as-is, regardless of its condition. This can save you time and money and make the process much more convenient.
Another benefit of a direct sale to Northwoods Property Resources is that there are no real estate agent commissions or fees to pay. When you sell your property through a traditional MLS listing, you will typically need to pay a commission to the buyer’s agent and your own agent. This can add up to thousands of dollars in fees. With a direct sale to Northwoods Property Resources, there are no commissions or fees to pay, which means that you can keep more of the sale price for yourself.
Finally, a direct sale to Northwoods Property Resources offers certainty and peace of mind. When you sell your property through a traditional MLS listing, there is always the risk that the sale will fall through during the escrow process. This can be devastating for homeowners who are counting on the sale to go through. With a direct sale to Northwoods Property Resources, you can be confident that the sale will go through as planned and that you will receive cash for your property.
The escrow process can be a stressful and time-consuming experience for homeowners. However, there is a faster and less stressful option available – a direct sale to Northwoods Property Resources. With a direct sale to Northwoods Property Resources, you can avoid the uncertainty and stress of the traditional escrow process and get cash for your property quickly. If you’re looking to sell your property in Milwaukee, contact Northwoods Property Resources today to learn how we can help you. (920) 851-9727