Thank you so much jp, this answers most of my questions but since you gave me permission, I ask more
I agree with you that face to face in public is good so you can exchange money and wait for transactions to be confirmed before ending the trade. But why is the escrow service an impediment? Maybe this extra step is the cause for higher asking price for cash deposit method?
The reason I would like to consider an out of town seller is because their ask prices are fairer. In my area, the sellers are still trying to profit from the btc hype and do not seem to adjust for the recent low of around $600-650, instead they want to sell for much more.
You suggest Coinbase. Are they connected to localbitcoins?
I thought of one more question, of course anyone can answer it. If I make a cash deposit at an open bank on a weekend, will the seller receive the money the same day, or will they have to wait until next business day, so Monday?