Keep Some Funds in Escrow
On Friday afternoon, I agreed to buy a domain name for what I think is a good price. It was getting late in the day, and there wasn’t much of a chance of getting the deal done that day, unless the money was already in escrow. For a situation like this, it might be good to have funds in your escrow account.
It doesn’t happen regularly, but I have had buyers and sellers back out of deals on me. They take a bit more time to think about the deal, and they decide they don’t want to close the deal. It sucks, but it happens. I have found this to be the case more regularly on deals that are agreed to prior to a weekend and are expected to close the following week. People either get cold feet about spending money on the domain name or they have second thoughts about selling a domain name for the agreed upon price.
When you keep funds in an escrow account, you can transact nearly immediately. You don’t have to wait hours or days (international) for the escrow company to receive your wire transfer. This is precious time when an important deal is on the line.
This past Friday afternoon, a seller agreed to sell a domain name to my company, and I didn’t want to risk losing the deal over the weekend. Prior to agreeing to the escrow transaction at Escrow.com, my account was fully funded, and I was able to pay instantly upon the seller agreeing to the transaction. Being quick to fund the transaction allowed the domain transfer to start before the weekend, and the deal will hopefully be wrapped up in the next few days once the domain name is released by Moniker.
If you transact regularly using using an escrow service, it might be beneficial to pre-fund your account or keep money in the account. Interest rates at the banks are low, and as long as you trust the escrow service you use, it can be wise to have your account funded in advance.
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