Common Mistakes in Escrow and How to Avoid Falling Into Them

by Brent Blay

For most buyers and sellers, escrow feels like the finish line of a real estate deal. It’s where everything comes together—money, inspections, paperwork, and approvals. But here’s the reality: escrow is also where the most mistakes happen.

According to national housing data, nearly 1 in 3 transactions run into escrow delays, and around 16% of home sales fall through completely—often because of preventable missteps during this stage. That means a significant number of families who thought they were on their way to closing ended up back at square one.

The Most Common Escrow Mistakes

Missed deadlines – Even something as small as a late signature or delayed wire transfer can stall the entire process.
Unclear contingencies – Buyers and sellers often skip over details in inspection or financing clauses that come back to cause stress later.
Poor communication – With agents, lenders, escrow officers, and inspectors all involved, one breakdown in communication can lead to confusion and setbacks.
Inspection & appraisal surprises – Unexpected issues can leave buyers frustrated and sellers scrambling to fix things quickly.

Why It Matters

These mistakes don’t just cause frustration—they can cost time, money, and in some cases, the home itself. What’s surprising is how common they are. Most buyers and sellers don’t even realize how many moving parts are in play until they’re already in escrow, and by then, it’s often too late to “undo” the stress.

The Good News

Here’s the part most people overlook: these problems are avoidable. With the right systems in place, proactive communication, and someone guiding you step by step, escrow doesn’t have to feel overwhelming. The difference between a smooth close and a stressful one usually comes down to preparation and having the right people on your side.

Escrow shouldn’t feel like a gamble. Knowing what typically goes wrong—and how to stay ahead of it—can help you avoid being part of that 16% of deals that fall apart and instead move confidently toward closing.

👉 If you’re preparing to buy or sell, let’s connect. I can walk you through the escrow process, help you avoid the most common mistakes, and give you the confidence to close smoothly.

📞 Call or text me at (909) 641-8751
📧 Email: Brentblay@parkregency.com