If you are selling btc.. then yes you need btc in your wallet for escrow. If you are buying btc.. then u dont need any in your wallet.
If you are selling online then you need a minimum of 1btc in your lb wallet. If you are selling for cash then you don't need any in the wallet. Also the escrow service is only for online transactions so if anyone asks for it for an inperson transaction just refuse outright. There is another service called the transaction service that is designed for inperson transactions.
You have to use either transaction service or escrow to get rated and their is a 1% fee to the advertiser for either service. Go through the FAQ with a fine toothcomb to understand all this. Personally I don't trust their escrow service because some people have had a bad experience with it so be cautious.
So you are saying that the buyer opened the request and requested the online escrow with a cash in person buy? Possibly?
