Home Buying in Battle Ground>Question Details

Property Mav…, Other/Just Looking in Monroe, WA

What are buyer's closing costs on a cash purchase on unimproved land? Purchase price is $25,000.

Asked by Property Maven, Monroe, WA Tue Oct 12, 2010

Property is in rural King County. Cash - no loan. Are escrow agents necessary and what are title insurance costs - are they split with the seller?

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Closing costs are minimal on cash deals. The one I have closing right now is 1/2 the escrow charge and their recording fee.
1 vote Thank Flag Link Tue Oct 12, 2010
The seller would normally pay the title insurance for you, & you for the lender, & since there is no lender, you are off the hook. split escrow, so shop around for the best price. You may not have to have escrow, but you will have to pay a lot of attention to prorating everything. I would always suggest using professionals whenever possible.
1 vote Thank Flag Link Tue Oct 12, 2010
My $9,000 cash land deal came out to a little under $9600.
I don't know about out there, but escrow accounts are generally required for earnest money.
I put down about 2 percent.
Generally you pay for homeowners/landowners title insurance.
Mine Broke down as follows:
Closing fee $300
Title Insurance $150 (which I think is a little high based on what I have read, but I am not sure if it is worth the trouble to irritate the attorney and find my own, besides he charged me for title examination. Yes I just looked at it. The little SOB attorneys are getting $112.50 of the title insurance, and they are paying the title insurance company $37.50. What a crock. My closing is soon, and I am going to see if I can find it cheaper elsewhere. They are not the only law firm out there if push comes to shove.
Title Examination $125
Deed Recording charge $10
Transfer taxes $9
They will give you a HUD-1 form before closing which breaks everything down.
I don't know what half of escrow everyone is talking about means.

I have to buy my own title insurance, and survey if I want one. I am having second thoughts about title insurance, because I believe it only covers the purchase price. For example, if you were to buy title insurance on $25,000 land deal, and somehow something was missed and you were forced to return the land, you would only get $25,000 back, as far as I know, so if you built a $200,000 house, then I guess you would be out the price of the house unless you got it moved. In my case, I am also going to have to have a well dug (pretty hard to take with you), a septic tank along with grading/leveling and preparing the property for a home, and getting a propane tank most likely (which would be the only thing I would be able to take with me), and I would have to pay to get the home moved. Makes you wonder if it is really worth it. If I am wrong about this, please correct me.
0 votes Thank Flag Link Sat Mar 17, 2012
I am not looking, I am purchasing, but it only gives you the choice of buying a home, but like the other person, I am just purchasing land.
Flag Sat Mar 17, 2012
On cash transaction you can typically expect your closing cost to be half of the escrow fee, recording fee and prorated property taxes. That's is pretty much it. If there are any monthly or annual fees those would be prorated also, such as if there are any agreements attached to the property for shared cost to maintain a road, common areas, shared wells etc. Who pays title insurance would be determined by the terms of your contract. It is customary in our area that the seller pays for the title insurance but sometimes terms are negotiated that the buyer will pay for it. Such as banked owned properties will sometimes have in their counteroffer addendums that the buyer will be responsible for the cost of sellers title insurance. You will need to use either an escrow agent or an attorney to prepare the proper documents that will need to be recorded. Your half of the escrow fee is not going to be very much.
0 votes Thank Flag Link Tue Oct 12, 2010
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