By Robert Urban, FSBO Seller, Escrow Explainer, and Full-Time Avoider (Or is it avoider-er?) of Being Screwed Over
You’ve listed the house. You’ve shown it to strangers who’ve touched your walls, commented on your kitchen tile, and whispered weird things in your bathroom.
And finally — praise the real estate gods — you’ve got an offer.
You’ve negotiated, agreed on terms, and you’re ready to seal the deal.
Except now everyone keeps tossing around the word “escrow” like it’s something you learned in kindergarten. Spoiler: It’s not.
Let’s be honest – unless you’re flipping houses like they’re pancakes at a Waffle House, the average person only goes through a home sale once every 15 years (that’s the Florida average, by the way).
So no, “escrow” is not part of your daily vocabulary. It’s weird. It’s vague. But don’t worry, I am about to break it down like you’re hearing it for the first time… because you might be.
Here’s everything you need to know about the escrow process as a FSBO seller in Florida — in plain English.
First of All, What the Heck Is Escrow, anyway?
Escrow is a fancy word for:
“A neutral third party holds the money and paperwork until everyone does what they’re supposed to.”
Think of it like a referee who doesn’t care if the buyer loves your crown molding or if you think your home is worth more because “the vibes are good.” They just make sure both sides play fair, follow the contract, and nobody walks away with the cash until the job is done.
Step 1: Opening Escrow (aka: “We’re Doing This Thing”)
Once you and the buyer sign the Purchase and Sale Agreement (congrats, by the way), the buyer will submit their earnest money deposit — a little “I’m serious” financial handshake — usually 1–3% of the purchase price.
That money goes into an escrow account, not your bank account, not the buyer’s sock drawer, and not under your mattress.
In Florida, the escrow agent is typically:
- A title company (most common for FSBO)
- An attorney
- Or in some cases, a broker (but not in FSBO — you ARE the broker, remember?)
Make sure the escrow agent is licensed, professional, and not your cousin Greg who once sold Pokémon cards on eBay. (Unless he wants to give me a Charizard Topsun Blue Back- then I will recommend him)
Step 2: Contract Kicks In (Cue the Countdown)
Once escrow is open, the real work begins:
- The inspection period starts ticking (usually 7–15 days unless otherwise negotiated).
- The buyer applies for financing (if they haven’t already).
- Title searches, lien checks, and document prep begin behind the scenes.
- If you agreed to repairs or fixes, now’s the time to start handling those.
Your escrow agent/title company will guide you through the paperwork and let you know what’s needed to keep things moving.
Note: FSBO sellers often make the mistake of just sitting back and waiting.
Don’t. Stay involved, stay on top of communication, and keep receipts.
Step 3: Inspections, Appraisals, and Mild Panic
This is the part where buyers send in inspectors to judge your house like it’s on America’s Got Mold.
They might bring:
- General home inspectors
- Roof inspectors
- Termite guys
- Mold testers
- The one relative who thinks they’re a contractor because they once built a treehouse
You don’t have to be there. In fact, you shouldn’t be — it’s weird for everyone.
Just make sure your house is clean, accessible, and not guarded by a dog named Brutus.
If issues come up, the buyer might ask for:
- Repairs
- Credits
- A price reduction
- Or to walk away altogether
This is where negotiations may happen again — and your escrow agent remains neutral while you two duke it out like adults (or at least like civil humans with email access).
Step 4: Contingencies Are Met or Cleared
Most contracts have contingencies — little escape hatches built into the agreement, such as:
- Financing contingency
- Appraisal contingency
- Inspection contingency
- The “my mom doesn’t like the kitchen” clause (okay, not real, but it feels real sometimes)
Once those are handled, the buyer must remove contingencies in writing.
That means: “I’ve seen the place, got the loan, and I’m still in. Let’s do this.”
If they back out after this without a valid reason, you keep the earnest money.
(Which feels amazing, but also — now you have to re-list. So… yay?)
Step 5: Title and Escrow Team Do Their Nerdy Magic
The title company will:
- Run a title search to make sure you actually own the property (you’d be surprised)
- Clear any liens, unpaid taxes, or weird 1994 divorce claims
- Coordinate with the buyer’s lender
- Prepare the closing documents
- Schedule the actual closing
- Handle the money like Fort Knox — wiring funds only when all signatures are in
You’ll be asked to review and sign a stack of papers.
Yes, your hand will cramp.
Yes, it will feel like signing your life away.
Yes, this is normal.
Step 6: Closing Day (Cue the Fireworks)
Once everyone signs, and the escrow agent confirms funds have been received, here’s what happens:
- The deed is transferred
- You get paid
- The buyer gets keys
- Everyone cries a little inside
- You wonder how fast you can move without forgetting the blender
Congrats. The escrow has closed and you’re officially done.
No Realtor. No commission. No drama (hopefully).
Bonus FSBO Tips for a Smooth Escrow Process
- Pick a reputable title company early in the game. Preferably one that’s FSBO-friendly and doesn’t talk down to you.
- Keep everything in writing. Always. Even texts. Especially texts.
- Don’t skip using a proper FSBO contract. (Need one? HOYONOW.com has a killer “As-is” one built for normal humans.)
- Ask questions. If something’s unclear — ASK. This is not the time for ego or “playing it cool.” This is the time you are reminded of your elementary school teacher saying “There are no stupid questions” (Which 45 years of living has proven to me that is a false statement, but you get my drift.)
- Be realistic. No deal is perfect. But most hiccups are fixable with communication and caffeine.
Escrow Is Not the Enemy — Confusion Is
The escrow process isn’t designed to make your life harder.
It’s designed to make sure nobody gets screwed — not you, not the buyer, and not the bank footing the bill.
If you handle your FSBO sale with the right info, the right paperwork, and a tiny bit of patience, escrow becomes just another step — not a horror story.
Need a contract that actually works for FSBO?
Need a checklist so you don’t forget something stupid and lose the deal?
Learn more about HOYONOW.com and how they can walk you every step of the FSBO process and save you big money while doing so.
I am rooting for you,
Robert Urban