There are a few ways to sell your house fast for a good price. Before we go into them, we should clarify that it's not about selling your house fast for the highest price, it's about selling your house fast for the highest *net proceeds*.

 

## Selling fast: understanding what takes up time in the real estate transaction

 

1. Pre-listing repairs. *Solution:* [sell AS-IS](https://www.offermarket.us/guides/selling-a-house-as-is) and list fast
2. Asking for too much. *Solution:* be honest with yourself, what is the condition of the property and what are the [comps](https://www.offermarket.us/real-estate-glossary/comps)? Set an attractive asking price.
3. Unqualified buyers. *Solution:* verify [proof of funds](https://www.offermarket.us/real-estate-glossary/proof-of-funds)

Here's how to your house fast for a good price (optimal net proceeds). There's more to learn at OffeMarket. 

How can I sell my house fast for a good price?

large_How can I sell my house fast for a good price - MetaImage.jpg

medium_How can I sell my house fast for a good price - MetaImage.jpg

small_How can I sell my house fast for a good price - MetaImage.jpg

thumbnail_How can I sell my house fast for a good price - MetaImage.jpg

How can I sell my house fast for a good price - MetaImage.jpg

How Can I Sell My House Fast? - OfferMarket FAQs

## Every day is We Buy Houses day at OfferMarket

 

This article shall serve as notice that every day at OfferMarket is 'We Buy Houses' day. As long as you ask yourself or Google "what is we buy houses", OfferMarket needs to be top of mind. We Buy Houses is taking on a new meaning thanks to our super modern technology and ridiculously simple real estate transaction process.

 

## How does we buy houses work?

 

We buy houses is a saying used by real estate wholesalers who want to put your house under contract with a cash offer and then sell the contract to an actual buyer. Some [real estate wholesalers](https://www.offermarket.us/guides/wholesale-real-estate-101) will tell you that they are the actual buyer, others will be honest and let you know that they have cash buyers to whom they will assign the contract.

 

## Does OfferMarket actually buy houses?

 

At OfferMarket, we buy houses differently. The 'we' in by 'we buy houses' is our nationwide network of qualified buyers who submit offers directly to you on our real estate marketplace. Here, buyers compete and you get a fair price. Learn more about [how OfferMarket works](https://www.offermarket.us/frequently-asked-questions/how-does-offermarket-work).

 

We are also directly buying select rental properties for our own rental property portfolio. That's right, if you [create your free listing](https://www.offermarket.us/sell) on our platform, we may provide you with a direct purchase offer where we are the actual buyer and we close in under 30 days because we buy houses for cash.

 

## Where do we buy houses?

 

OfferMarket is a technology-driven online marketplace. We buy houses everywhere in the United States.

 

## Some of the real estate markets we buy houses in:

 

- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- [Maryland](https://www.offermarket.us/we-buy-houses/baltimore-md)
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- [Washington, D.C.](https://www.offermarket.us/we-buy-houses/washington-dc)
- West Virginia
- Wyoming

 

## We Buy Houses AS IS, In Any Condition! 🏚️

 

From turnkey to teardown, we buy houses in any condition. Even if your house looks like this...

 

<iframe width="560" height="315" src="https://www.youtube.com/embed/Sy8RMWsR_Qw" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>

 

If your home looks like the inside of the one in this video, and you're thinking to yourself "man, I need to sell my house fast", you should stop reading and create your free listing on OfferMarket.

 

​We buy houses in any condition. We buy houses in poor condition. Selling a house in poor condition is our specialty. Wondering [how to sell a house in poor condition](https://www.offermarket.us/guides/selling-a-house-in-poor-condition)? Read our guide!

Every day is 'We Buy Houses' day at OfferMarket. How does we buy houses work? Learn more.

Every Day is We Buy Houses Day at OfferMarket

large_We Buy Houses - MetaImage.jpg

medium_We Buy Houses - MetaImage.jpg

small_We Buy Houses - MetaImage.jpg

thumbnail_We Buy Houses - MetaImage.jpg

We Buy Houses - MetaImage.jpg

'We Buy Houses' Day - Real Estate Blogs - OfferMarket

Announcing 'We Buy Houses' Day

Unfortunately, there are many things that can bring down property value. It helps to categorize these items into as follows: 

 

1. Property-centric
2. Market-centric

 

## Property-centric home value destroyers

 

Property-centric items that bring down your home's value are much more in your control than market-centric items, so it's important to make sure you are alert and maintain your property proactively before small issues become big, expensive problems.

 

## Roof leaks, water intrusion, foundation issues

 

Roof leaks that go unaddressed can cause major property damage (water damage, mold growth) that can quickly destroy the value of your home. Foundation issues that result in water intrusion or structural instability can be very costly and hazardous. Other items that result in water intrusion and biological growth (mold) include separated siding, unsealed entryways and windows.

## Pest infestation

 

Termite damage bed bugs can require substantial and expensive remediation. Rodent infestation can cause structural damage due to chewing through hard to access places. Rodents can also cause electrical wiring damage. 

 

Thus, [mice removal](https://www.peststrategies.com/pest-guides/rat-and-mouse-guides/mice-removal/) is essential to protecting your home.

 

It's important to be proactive to address pest concerns. If you are managing a rental property, remind your tenants every month that they are required to communicate and maintenance and pest related concerns proactively.

 

## Tenants with poor hygiene

 

As you might imagine, poor hygiene can cause pest infestation, foul odors and other issues that can bring down the value of your property.

 

## Tenants who damage or neglect the property

 

If you lease your house to people who break things or don't report maintenance issues, you can expect costly repairs that you may be left on the hook for.

 

## Delinquent tenants

 

It may be costly and time consuming to evict delinquent tenants. These are commonly the same people who damage or neglect the property. That's why it is so important to thoroughly screen prospective tenants.

 

The list goes on, and the message should be clear: *an ounce of prevention is worth a pound of cure.*

 

## Market-centric home value destroyers

 

Market-centric factors can be much harder to control for and avoid.

 

## Economic downturn

 

Whether local to your community or city, or nationwide (i.e. 2008 financial crisis), economies can experience short term shocks and longer-term structural issues which will be discussed below. When this happens, the price people are able and willing to pay for your house may be less than in the recent past.

## Rising interest rates

 

When interest rates increase, the interest payments for new mortgages goes up. Buyers can't afford the same purchase price range as when interest rates and their associated monthly payments are lower. As a general rule of thumb, rising interest rates will cause home prices to decline.

 

## Population decline

 

Related to the concept of economic downturn, when a local market experiences a declining population, it means there will likely be an imbalance of the supply of houses relative to the demand for houses. Housing demand and home prices may further decline, as many buyers become hesitant to purchase houses in markets where the proverbial bottom is unknown.

 

## High property taxes

 

High taxes can lead businesses and residents to relocate elsewhere, resulting in lower demand for housing inventory.

 

## High crime rate

 

Crime is directly correlated with property values. When crime goes up, people put their houses up for sale, high supply and low demand means property values go down.

 

## Poor governance

 

Corruption and unreliable city services can make would-be homebuyers look elsewhere. Lower demand for your house means a lower price.

 

## Low quality public schools

 

Many parents and guardians of children approaching or in the K-12 age range are sensitive to the quality of public schools. If your home is in a school district that is experiencing a decline in rankings, there will be lower demand for your home -- lower demand means lower property value.

 

As with property-centric home value destroyers, the list of market-centric home value destroyers continues on and is closely inter-connected. 

 

Before buying a house, understand the property and market-based factors that can bring down property value and do your research!

Things that lower property value fall into property-based and area-based categories. Learn more at OfferMarket.

large_What brings down property value - MetaImage.jpg

medium_What brings down property value - MetaImage.jpg

small_What brings down property value - MetaImage.jpg

thumbnail_What brings down property value - MetaImage.jpg

What brings down property value - MetaImage.jpg

What brings down property value? - OfferMarket FAQs

What brings down property value?

Grow your real estate investing business with the most competitive DSCR loan product. OfferMarket provides DSCR rental loans, bridge loans, hard money, fix and flip, slow flip, and ground up construction loans.

Private Lending | OfferMarket

Private Lending

How to Use the Escrow Calculator

What is an Escrow Account?

Common Expense Items Held In Escrow

How Escrow Works

Why Do Lenders Require an Escrow Account?

Do I Need to Have an Escrow Account?

Escrow vs. Self-Management

Pros and Cons of Opting Out

Do Escrow Accounts Earn Interest?

Opportunity Cost of Escrow Accounts

Conclusion

Real Estate Investing Platform

**Last updated:** March 6, 2025

 

This escrow calculator is a powerful tool designed to help you determine the necessary escrow deposits to ensure you have sufficient funds to cover your insurance and tax obligations throughout the year. Whether you’re a title agent, real estate attorney, homeowner or real estate investor, this calculator also allows you to calculate the total amount held in escrow for these critical payments, giving you peace of mind and financial clarity. 

 

Escrow accounts can feel complex, but with this tool, you can break down the process into manageable steps, visualize your payment schedules, and ensure your account remains adequately funded. Let’s dive into how to use it effectively and explore the broader context of escrow accounts in real estate. 

 

## **How to Use the Escrow Calculator**

 

Using the escrow calculator is straightforward, but precision is key to getting accurate results. Follow these steps to input your data and review the outcomes: 

 

### **Step 1:** Enter the month and year when your first loan payment is due.

This starting point aligns the calculator with your mortgage schedule. For example, if your loan begins in April 2025, the calculator uses this as the baseline to project escrow deposits and disbursements over the next 12 months. 

 

### **Step 2:** Input the *annual amount* for home insurance, mortgage insurance, county tax, city tax, school tax, and flood insurance where applicable.

Provide the total yearly cost for each item. For instance, if your homeowners insurance is $1,200 annually and your county taxes are $2,400, enter those figures exactly as they appear on your bills or estimates. If an item doesn’t apply (e.g., no flood insurance), simply leave it at zero. 

 


### **Step 3:** Set the payment *frequency* for each expense item (annual, semi-annual, quarterly, monthly).

Different expenses have different billing cycles. Homeowners insurance might be paid annually, while property taxes could be quarterly or semi-annually depending on your locality. Specifying the frequency ensures the calculator spreads the costs accurately across the year. 

 

### **Step 4:** Select the number of *cushion* months for each expense item.

A cushion is a reserve to prevent your escrow account from dipping into a negative balance. The industry standard is typically a two-month cushion, meaning you maintain two months’ worth of payments as a buffer. For example, if your monthly escrow contribution for taxes is $200, a two-month cushion adds $400 to your required balance. 

 

### **Step 5:** Choose the *first payment* month for each expense using the provided drop-down options.

Align each expense with when it’s due. If your homeowners insurance renews in July and your school taxes are paid in September, select those months. This step ensures the calculator anticipates cash outflows correctly. 

 


### **Step 6:** Scroll down to review the analysis tables.

The tables display a month-by-month breakdown of your escrow balance, deposits, and payments. You’ll see how your account accumulates funds and when disbursements occur, helping you spot potential shortfalls or surpluses. 

 

### **Step 7:** Scroll down to review the Settlement Statement Disclosure.

This section mimics the initial escrow disclosure you’d receive from your lender, summarizing the estimated costs and reserve requirements for the first year. It’s a handy reference for understanding your obligations at closing. 

 

### **Step 8:** Name your calculation, save it, and/or download as PDF.

Give your scenario a unique name (e.g., “2025 Primary Residence Escrow”) for easy tracking. Saving or downloading it as a PDF allows you to revisit or share it later. 

 


### **Step 9:** Share your calculation with co-borrowers, partners, and/or advisors.

Collaboration is key in real estate. Share your results with your spouse, business partner, or financial advisor to ensure everyone is on the same page regarding escrow planning. 

 

By following these steps, you’ll gain a clear picture of your escrow needs, tailored to your specific loan and property expenses. 

 

## **What is an Escrow Account?**

 

An escrow account is a financial tool used by lenders and borrowers to manage recurring property-related expenses. Think of it as a savings account controlled by your loan servicer, where funds are set aside to pay for obligations like taxes and insurance on your behalf. This ensures these critical payments are made on time, protecting both you and the lender.

 


## **Common Expense Items Held In Escrow**

 

Here’s a closer look at the expenses typically covered by an escrow account:

 

* ☂️ **Homeowners Insurance (i.e., Landlord Insurance):** Covers damage to your property from events like fire, storms, or vandalism. For rental properties, this might be termed landlord insurance, but it serves the same purpose. 

 

* ☂️ **Flood Insurance:** Required in flood-prone areas, this protects against water damage and is often mandated by lenders if your property is in a designated flood zone. 

 

* ☂️ **Private Mortgage Insurance (PMI):** Applies if your down payment is less than 20% on a conventional loan. PMI protects the lender if you default and is typically paid until you reach 20% equity. 

 

* 💸 **Real Estate Taxes (City, County, School):** These vary by jurisdiction but often include city taxes for municipal services, county taxes for broader infrastructure, and school taxes to fund local education. 

 

* 💸 **Homeowners Association Dues (HOA):** If your property is in a managed community, HOA fees may be escrowed to cover amenities, maintenance, or shared utilities.

 


## **How Escrow Works**

 

When you secure a mortgage, your lender provides an **Initial Escrow Disclosure Statement**. This document estimates your insurance premiums, property taxes, and other charges for the first 12 months of escrow, based on historical data or current rates. At closing, you’ll typically prepay a portion of these costs into the escrow account to establish an initial balance. 

 

Each month, your mortgage payment is split into three parts:

 

1. **Principal:** Reduces your loan balance. 
2. **Interest:** Covers the cost of borrowing. 
3. **Escrow Deposit:** Funds the escrow account for future payments.

 

The total monthly payment is commonly referred to as [PITIA](https://www.offermarket.us/blog/pitia) for amortizing loans and ITIA for interest-only loans.

 

Over time, escrow deposits accumulate, and your servicer uses them to pay your taxes, insurance premiums, and other escrowed items when they’re due. The Escrow Calculator helps you visualize this process, showing how your balance grows and shrinks with each payment cycle. Including a reserve (e.g., the two-month cushion) prevents shortages, while an extra cushion adds a safety net for unexpected increases in costs. 

 

## **Why Do Lenders Require an Escrow Account?**

 

Lenders often mandate escrow accounts to mitigate risk and comply with loan program guidelines. Here’s why:

 

### **Risk Management for Lenders**

When you borrow money to buy a property, the lender has a vested interest in ensuring the collateral (your home) remains protected. If property taxes go unpaid, the government could place a lien on the property, jeopardizing the lender’s claim. Similarly, if insurance lapses and a disaster strikes, the lender could lose their investment. Escrow accounts allow the servicer to oversee these payments, reducing the chance of missed deadlines or coverage gaps.

 

### **Institutional Investor Requirements**

Many lenders don’t hold your loan long-term; they sell it to institutional investors like banks, pension funds, or government-sponsored entities (e.g., Fannie Mae, Freddie Mac). These investors often require escrow accounts as a condition of purchase. By having the servicer manage taxes and insurance, investors ensure consistent payment histories, minimizing their exposure to risk.

 

### **Loan Program Guidelines**

Different loan types have different escrow rules. For example, FHA and VA loans almost always require escrow accounts due to federal regulations, while conventional loans might offer flexibility if you have a strong credit profile or significant equity. Understanding your loan terms is crucial to knowing whether escrow is mandatory. 

 

## **Do I Need to Have an Escrow Account?**

 

Not necessarily. Whether you need an escrow account depends on your lender, loan program, and personal preference.

 

## **Escrow vs. Self-Management**

 

Some borrowers can opt out of escrow and manage taxes and insurance payments themselves. This is more common with:

 

* **Hard Money Loans:** Short-term loans like a [Fix and Rent loan](https://www.offermarket.us/fix-and-rent-loan) often skip escrow requirements, leaving payments in your hands. 
* **High Equity Conventional Loans:** If you put down 20% or more, some lenders allow you to waive escrow, provided you have a solid financial track record.

 


In contrast, [DSCR loans](https://www.offermarket.us/dscr-loan?ref=content-escrow-calculator) (Debt Service Coverage Ratio loans), popular among rental property investors, typically require escrow to ensure rental income isn’t diverted from tax and insurance obligations.

 


## **Pros and Cons of Opting Out**

 




 

* **Pros:** You retain control of your funds, potentially earning higher returns by investing them elsewhere until payments are due. 
* **Cons:** You’re responsible for budgeting and timely payments. Missing a tax bill could lead to penalties or a lien, and forgetting insurance could leave your property unprotected.

 

If you’re disciplined with money and prefer flexibility, self-managing might work. Otherwise, an escrow account simplifies the process. 

 

## **Do Escrow Accounts Earn Interest?**

 

In some states, yes—your escrow balance may earn interest, which can offset rising costs or reduce your monthly payment over time. The following states mandate interest on escrow accounts as of March 2025:

 

* Alaska 
* California 
* Connecticut 
* Iowa 
* Maine 
* Maryland 
* Massachusetts 
* Minnesota 
* New Hampshire 
* New York 
* Oregon 
* Rhode Island 
* Utah 
* Vermont 
* Wisconsin

 


### **How Escrow Interest Works**

If you live in one of these states, your servicer calculates interest on the average daily balance of your escrow account, typically at a modest rate set by state law. This interest isn’t paid out directly; instead, it’s credited to your escrow account and factored into the periodic escrow analysis. Your servicer will report this on IRS Form 1099-INT, alongside your mortgage interest statement (Form 1098), for tax purposes. 

 

In states without this requirement, escrow funds sit idle, earning nothing—a key consideration for investors weighing opportunity costs. 

 


## **Opportunity Cost of Escrow Accounts**

 

Money in an escrow account is technically yours, but you can’t access it until the servicer disburses it for taxes or insurance. This creates an opportunity cost—the potential returns you’re missing out on by not investing those funds elsewhere.

 

### **Comparing Returns**

Let’s say your escrow account holds an average balance of $3,000 annually. In a state with mandatory interest, you might earn 1.5% ($45/year). Compare that to:

 

* **Real Estate:** Reinvesting $3,000 into a rental property yielding 8% could generate $240/year.
* **Stocks:** A diversified portfolio averaging 7% could return $210/year. 
* **Savings Account:** A high-yield account at 4% might net $120/year.

 

The gap between escrow interest (if any) and alternative investments can be significant, especially for real estate investors managing multiple properties.

 


### **Balancing Risk and Reward**

Opting out of escrow to invest those funds comes with risks. If you fail to set aside enough for a $2,000 tax bill or a $1,500 insurance premium, you could face penalties or coverage lapses. The Escrow Calculator helps you weigh this trade-off by showing how much you’ll need to reserve independently, letting you decide if the potential returns justify the responsibility. 

 

## **Conclusion**

 

The Escrow Calculator is more than a tool—it’s a window into your financial obligations and opportunities as a property owner or investor. By understanding how escrow works, why lenders require it, and how it impacts your cash flow, you can take control of your real estate journey. Whether you’re navigating a mandatory escrow account or weighing the benefits of self-management, this guide and calculator equip you with the knowledge and resources to succeed. 

 

Ready to dive deeper? Use the calculator, explore our platform, and connect with our team to turn your real estate goals into reality. 

 

---

 

## **Real Estate Investing Platform**

 

At OfferMarket, our mission is to empower you to build wealth through real estate. We’re a private lender exclusively serving real estate investors and we specialize in 1-4 unit residential properties. Thousands of investors use our platform monthly to streamline their operations and grow their portfolios. Here’s how we support you:

 

* 💰 [**Private Lending**](https://www.offermarket.us/loans?ref=content-hard-money-vs-private-money)**:** Flexible financing options like DSCR loans and Fix and Rent loans tailored to your investment goals. 
* 🏚️ [**Off-Market Properties**](https://www.offermarket.us/listings?ref=content-hard-money-vs-private-money)**:** Access exclusive deals to expand your portfolio. 
* ☂️ [**Insurance Rate Shopping**](https://www.offermarket.us/insurance?ref=content-hard-money-vs-private-money)**:** Compare policies to minimize escrow costs. 
* 💡 [**Market Insights**](https://www.youtube.com/channel/UCRoNHXFVgI36SV0QQpyf9fw)**:** Stay informed with expert analysis and trends.

 

### **Why Choose Us?**

We understand the unique needs of real estate investors. Whether you’re calculating escrow for a new rental property or securing financing for a flip, our tools and services are designed to save you time, reduce costs, and maximize returns. The Escrow Calculator is just one example of how we simplify complex processes, giving you the confidence to make informed decisions.

An online escrow calculator designed to help real estate professionals calculate and understand escrow starting balances. Get PDF, save and share your escrow calculations!

Escrow Calculator views of OfferMarket's escrow calculator for mortgage closings.

*Quote takes 1 minute, no credit pull

*1 quote from 40+ carriers

*New listings daily

Escrow Calculator

* Takes 2 minutes, no credit pull