Individuals who are seeking to buy a home in Delaware may need to put money in escrow before their transactions close. Putting money into escrow can provide incentive for both a buyer and seller to act in good faith until a home sale closes. A lender could also take a portion of a down payment or mortgage payment and put it into an escrow account. In such a scenario, the money would likely be used to pay property taxes and homeowners insurance.
Why escrow accounts are helpful
Fixer-uppers aren't necessarily less expensive
According to a study from Porch.com, individuals who buy fixer-uppers will likely spend just as much on these houses as those who purchase a turnkey property. If a homeowner goes over budget when renovating a fixer-upper, that person could spend $25,000 more than someone who bought a home that didn't need work. Overall, homeowners in Delaware spent an average of $246,891 on a fixer-upper and $250,496 on homes that were ready to live in from day one.
