It’s important that you find the best online escrow service when you are flipping websites priced at $1,000 and above. When you start flipping websites at that level, it’s imperative that both buyer and seller are protected. Outside of hiring a lawyer, using an online escrow service is the next best thing, but which service is best? Most website flippers and domainers will say Escrow.com, but I’m going to buck the trend and recommend Safefunds.com.
I’ve used both of these online escrow services and have had good experiences with both but I use Safefunds whenever I can because they are much cheaper and the escrow process goes so much smoother with them. Here is why I think so highly of them.
Buyer Funding Options
Safefunds allows you to fund your escrow account by bank wire, electronic funds transfer, or by check. Unlike Escrow.com, they don’t accept funds from PayPal or credit cards. For that reason you may think that Escrow.com is the better online escrow service but think again. If you look closely at Escrow.com’s terms, you’ll notice they only allow PayPal and credit card funds if you use their Premier Service (which is twice as expensive as their standard service) and there is a transaction limit of $5,000. In addition, the funds are subject to Escrow.com’s approval.
Unless your transaction is under $5,000 and you absolutely must fund the purchase via PayPal or credit card – and you’re willing to spend almost double the escrow fees – then I concede Escrow.com is the best online escrow service when it comes to funding options. However, I don’t think that many people fall into that category. If you are o.k. with a standard bank wire, EFT, or check then Safefunds is the way to go.
Seller Payment Options
Safefunds allows sellers to withdraw their funds either by electronic funds transfer (inside the USA), international wire transfer (outside the USA), or by check. Withdrawing by check is free while the domestic electronic funds transfer at the time of this writing is only $12.
Escrow.com offers all the same withdrawal options including check by overnight courier , but with the exception of the check via regular mail, which is free, all their withdrawal options cost more than Safefunds. As an example, at the time of this writing you’ll pay $20 for a domestic electronic funds transfer – $8 more than Safefunds.
Online Escrow Service Fees – Where Safefunds Really Shines
Safefunds, like Escrow.com, doesn’t charge anything to open an account with them. There are no fees for the buyer and the seller fees are a flat fee based on the value of the transaction. Let’s say you’re selling a website for $3,500. If you use Escrow.com, you’ll pay 3.25%, or $113.75. At Safefunds you’ll pay just $48! While the buyer technically doesn’t pay any escrow fees with Safefunds, as a seller you can always split the fees with the buyer. In my example, if you and the buyer agreed to split the fees 50/50, you’d pay just $24!
Compare the fees of these two online escrow services yourself. Click here for Safefunds complete fee schedule. Click here for Escrow.com’s fees. You’ll notice the fees for Escrow.com’s “Premier Service” is almost twice that of their standard service.
Defining The Terms of the Transaction
Both of these online escrow services are similar when it comes to allowing the buyers and seller to define the terms of the transaction. There are no restrictions with either service. The buyer and seller have complete control and flexibility in defining how the transaction will proceed and when the funds will be released.
Buyer and Seller Protection
Safefunds provides the same protections for buyers and sellers that Escrow.com does in the event there is a dispute during the transaction. If at any time during the transaction there is a problem, you can file a dispute. Safefunds will get involved immediately to help resolve the dispute and the funds will be held securely in escrow until a resolution has been met between the buyer and seller.
Customer Service
Safefunds customer service is simply amazing. If you send them an email with any questions or concerns before, during, or after the transaction you will get a personal response within a few hours. I can’t say the same with Escrow.com. There have been times when I have sent them an email and I didn’t hear from them for a day or more! I have always been impressed with Safefunds responsiveness. I encourage you to test both of them. Send each a general inquiry via email and see which one gets back to you sooner. If I was a betting man, I’d bet Safefunds would be first to respond.
As I said at the beginning of this post, both Escrow.com and Safefunds.com have been good to me and are two escrow services I have used and would recommend. I have never had a problem with either service. However, given the advantages I’ve outlined, I believe Safefunds.com is the best online escrow service and I use them every time I can.
