Home Buying in 90019>Question Details

Ben, Home Buyer in 90019

Why are the Escrow fees so high even though we are splitting between the seller and buyer? We as a buyer alone are paying $4047 on $750K house

Asked by Ben, 90019 Thu Sep 23, 2010

Please help me understand whether the fees that we are being charge from sellers Escrow company is reasonable or not. Even though we are splitting the escrow cost in half between buyer and the seller we are still paying $4047.
House: $750K putting 20% down
The Escrow fees
1 Escrow fees $1,712
2, loan Tie-In Fee $500
3,Doc Preparation $100
4,Notery Fee Est $150
5, Electronic Doc Dowload $150
6, Archieve fee $39.50
7, Wire fees $25
8, Overnight Mail &handle $100
9, Deed of Trust $100
10, Grant Deed $30
11, Lender Coverage to equity $771
12 endorsement if require $250
13, Sub Escrow fees $70
14, Additional Title Charges Insp. fee $50

Help the community by answering this question:


Hi Ben.

These numbers seem to be right on track and reasonable for your transaction.

May you have many happy years in your new home knowing that you weren't paying more than you should be for the fees you listed.

Ronnie Kline
Keller Williams - Hollywood Hills
0 votes Thank Flag Link Sun Apr 28, 2013
Hi Ben,

Those numbers look reasonable to me. You can always try negotiating with escrow and title directly to reduce your fees, and see if they budge -- although it doesn't look like there's much room.

I'm assuming you're using the seller's escrow and title -- but if not, try enlisting your agent's help. Sometimes if the agent has a relationship with title and escrow, they MAY be able to give you some sort of a concession.

Good luck,
Caroline Choi
Broker Associate/Realtor
Caroline Sells The City LA
0 votes Thank Flag Link Tue Sep 28, 2010
Hi Ben,
Unfortunately the escrow fees are what they are, and to tell you the truth this amount looks normal . You can always shop around and see if you can get a better rate. An all cash deal will cost less then this if you can do it.
0 votes Thank Flag Link Fri Sep 24, 2010
Hi Ben,
What additional info is it that you would like the escrow company to give you?
It's not at all uncommon for them not to publish their rates. Try googling "Escrow Companies LA CA" and you will see that most of them don't. Even some retailers don't publish the price of items advertised and require an over-the-phone quote instead.
Other than that, it appears the Escrow Officer addressed your concerns. Like I mentioned in my previous post, this should be something your agent should be able to help you with. If you're not already represented, feel free to give me a call as I have tons of experience working directly with escrow companies and can possibly assist your further.
p.310.383.1141 | http://www.LAVillageRealty.com
RealEstateSuz@gmail.com | lic # 01390707
(a division of Power Brokers Int'l | lic # 01520327)
0 votes Thank Flag Link Fri Sep 24, 2010
The fees listed are perfectly normal. It would be illegal for an escrow company to overcharge you, there are very strict regulations in place with CDI and while it seems you are being nickeled and dimed, these are reasonable and customary charges.
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Fri Sep 24, 2010
I asked if the Ecrow company could provide us with a copy of your published rates
Below is her answer. She will not give us the information

Our rates aren't published per se but the formula is $2.00 per thousand of the sale price with a $200.00 base which is $1,712.00. The seller pays the same fee. The other fees that you pay are specific to your part of the transaction and the other fees the seller pays are specific to his side of the transaction. The title rates are determined by calling the title company which they give us over the phone. Again, seller pays title insurance on the sales price and you pay title insurance on the amount of your loan.
0 votes Thank Flag Link Fri Sep 24, 2010
In an effort to be transparent by identifying individual line items it gives the impression of a host of "junk fees" and many of these are related to financing. The fees for an all cash deal will be significantly lower and fewer lines. To receive clear and complete title to the property you need these functions - title, recording the deed, your documents notarized,... So while it is hard to see on the surface many of these items have value to you. And you can always shop your own notary or drive to escrow to sign but you decide if these are worth it to you.

Good escrow people work hard and properly manage the transaction so just be sure you have a good one and you won't mind paying them nearly as much.

Enjoy your new home!
0 votes Thank Flag Link Thu Sep 23, 2010
Call a few escrow places and see what they charge. Have you tried asking your agent? What does he/she have to say about your fees?
0 votes Thank Flag Link Thu Sep 23, 2010
Ron is correct and this is something your agent should be able to explain to you.
"Closing Costs" include a whole slew of charges that include: title fees, escrow fees, lender fees, prorated property taxes/hoa dues, prorated and prepaid insurance, doc fees, doc prep fees, underwriting fees, processing fees, notary fees, messenger, and more...
The "Escrow Fee" typically is calculated by a base amnt + a charge per thousand of the purchase price. In your case: the $1,712 could have determined by a $250 base + $2 per thousand of price. This is completely in-line with what other escrow companies charge.
And I try to avoid writing in "50/50" b/c it's misleading. "Each to pay own costs as customary" is the more accepted language.
All of your fees look perfectly normal. It looks like you're obtaining a loan, so be aware that this estimate does not include your lender fees.
Good luck!
p.310.383.1141 | http://www.LAVillageRealty.com
RealEstateSuz@gmail.com | lic # 01390707
(a division of Power Brokers Int'l | lic # 01520327)
0 votes Thank Flag Link Thu Sep 23, 2010
The fees look reasonable.. you should call them "Closing COst Fees" as they reflect more than what the "Escrow"company is charging... BTW... you can always ask for a discount.. all they can say is no, and they may agree to do it... good luck!
0 votes Thank Flag Link Thu Sep 23, 2010
Hello Ben,

I don't think your fees look too high. Overnight mail maybe.

Monique Carrabba
The Carrabba Group
Keller Williams Hollywood Hills
(323) 899-2900
0 votes Thank Flag Link Thu Sep 23, 2010
Actually, it is not 50/50 for actual escrow fees. Typically the seller's escrow fees are higher than the buyers. Also you are usually looking at around 1.5% of the purchase price for buyer's fees. This would not seem to be unreasonable.
Web Reference: http://www.homejane.com
0 votes Thank Flag Link Thu Sep 23, 2010
I meant item 6 not 13. A document archival fee. Come on.
Flag Wed Feb 19, 2014
Is this a bunch of realtors trying to protect an archaic and overpriced industry,. Items 3,4,5,8,and 13 are all JUNK fees. The escrow company simply provides a safekeeping of your earnest money deposit in trust and prepares a settlement statement. How is it that these fees are based on the value of the transaction. The same amount of effort and activity is required for a $200,000 transaction as a $2M transaction. Most states combine both the title, escrow, and settlement statement and 2% of the transacation is NOT AT ALL REASONABLE. What these realtors are not telling you is that they all have affiliated business arrangements which effectively allow them to provide compensation to each other for your business. I have been a cash buyer on numerous occasions in SO CA and still have yet to see the value in separating the title and escrow services. The fact that they have to charge a "sub escrow" fee is admission that the escrow company simply can not convey the deed - SHOP AROUND
Flag Wed Feb 19, 2014
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