Ba, Home Buyer in Los Angeles, CA

Even i pay cash, the closing costs would be the same in LA, CA.? Thank you.

Asked by Ba, Los Angeles, CA Sat Sep 1, 2012

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13
Lucia Reed’s answer
A seller is getting "cash" whether you are paying cash or getting a loan. Some sellers will feel more secure choosing an all cash offer versus one with a loan contingency because less can go wrong and will therefore discount the purchase price for all cash with a quick close.

Many all cash buyers make so many demands that sellers can often be better off taking a chance on a well qualified buyer with a loan that really loves and wants the home, so be careful and don't be too demanding as it may backfire and seller may take another offer over yours.

As for closing costs, you can always ask for discounts and a few vendors like escrow may accommodate. As stated below, most of your closing costs will be the same if you go the typical who pays for what scenario, except you won't be paying your loan costs including the title policy insuring your lender against your misdeeds or mistakes.

You should talk to your agent about how to present your offer as all costs are negotiable. You will need to balance who pays what costs with the price and how it will affect you and seller with taxes,etc. You may choose to pay all the closing costs and offer a little less. Or pay none and offer more (less benefits unless you plan to resell quickly). What you negotiate in costs paid between you and seller will have the biggest effect on your closing costs.

Be informed, hire a good agent to represent you.

Lucia Ferreira
Broker/CEO
Sunset Palms Real Estate, Inc.
cell (909) 936-0000
1 vote Thank Flag Link Sun Sep 2, 2012
If you are paying cash, really the only fees you are saving on are the loan fees, because you are paying cash. There are Escrow and Title fees, inspection fees, smartest thing to do is ask your agent to get you a closing cost statement from their escrow officer or if you have an accepted offer you ask for one from the escrow officer that is closing the transaction. Prorated property taxes are included in this... 1.22% appox. of the purchase price.

Need any thing else don't hesitate to ask
310.896.1712 | lic#01377862

Madelaine Kolisnyk Realtor
Westside http://www.madelainek.com
you can search for property and find out many buyers tips on my website...
0 votes Thank Flag Link Sat Oct 13, 2012
Every real estate transaction has closing costs, there are reoccurring and non-occurring costs that include such fees as title and escrow costs. However, when you pay cash the closing costs are generally cheaper than if you were to get a mortgage to pay for the home or property you are buying. Title and escrow fees are negotiable. I would ask your Realtor or the escrow company to provide you with a breakdown of all the fees included, they should have provided you with this.

Good luck and remember-buying Real Estate is still a very smart purchase and closing costs are just one of the costs of buying a home.

Have a great day,
Heather Paul, Realtor
Coldwell Banker
310-586-0364
http://www.HeatherPaulOnline.com
0 votes Thank Flag Link Sat Oct 13, 2012
Dear Ba,
You have certain "fixed" costs that occur during closing of a sale that will have to be paid regardless of the method of payment. You will save money on closing when paying "all cash" but you cannot eliminate the fees entirely. Closing costs will vary, with the transaction.
0 votes Thank Flag Link Mon Sep 3, 2012
The terms by which you pay does not negate closing cost.

Closing cost are title fees escrow fee, recording fees, and taxes

Since you are paying cash you will not be required to pay prepaid home owners insurance

Paying cash will remove some of the cost you pay with financing, but never the less you will still have SOME closing cost.

Best of Success to you!!!!

Kawain Payne, Realtor
0 votes Thank Flag Link Sun Sep 2, 2012
Hey Ba,

Some of your closing cost like Tax proration and HOA fees are the same. But escrow service and title insurance vary slightly from company to company. But never the less, you could still get some discount in escrow service and title insurance. Just ask.
0 votes Thank Flag Link Sun Sep 2, 2012
You have some good answers here. I also encourage buyers who are paying cash to obtain an independent appraisal.

If I can answer any questions, please let me know.
0 votes Thank Flag Link Sun Sep 2, 2012
There are actually a lot less fees when buying with cash and, as a caveat, you don’t need to have a notary sign off the transaction documentation. As stated below, you not only do not have to pay the normal lender fees – what is not stated below is that this also includes the Lender’s Title Insurance policy – which alone is a huge savings. You can easily save approximately 50% on closing costs when paying cash. If you are comparing it to a purchase with a loan where the buyer is paying points to buy down the rate, the saving are even higher.
0 votes Thank Flag Link Sun Sep 2, 2012
You say if you pay cash you can save roughly about 50% but reading some of the other post from other Realtor's they seem to disagree and feel that the savings a minimal. I'm also wondering if I should hire a Realtor, attorney and if it's really necessary when purchasing a house with cash. I always though when you purchased a newly constructed house that the developer took care of everything included with the purchase. If I'm wrong please correct me because my last two houses I purchased I financed.
Flag Mon Sep 21, 2015
The only closing costs you save by paying cash rather than taking a mortgage are the lender fees which would typically include a flood certification check, appraisal, and origination fees. I would still strongly advise that consider having the property appraised to confirm it's worth at least as much as you're offering for it. Speak with you Realtor they can help you arrange this.
0 votes Thank Flag Link Sun Sep 2, 2012
Paying cash means you just don't have to pay for lender fees... you still have buyers closing costs.
0 votes Thank Flag Link Sun Sep 2, 2012
Buyers paying all cash usually expect to purchase at a discount , sellers normally expect to sell at a lower price because they think the certainty of closing is higher and the length of escrow will be shorter. Your closing costs may be the same amount, but you should be able to negotiate a lower purchase price.
0 votes Thank Flag Link Sun Sep 2, 2012
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
As the other agent said, the only difference is loan-associated fees, which can be 1-2% of the loan amount, not of the total price.
0 votes Thank Flag Link Sat Sep 1, 2012
Major difference detergent buying cash and financing is that you don't have to pay lenders fees.

Most other fees associated with real estate transaction (transfer, escrow, title, etc...) will still be there.

Please contact me anytime!


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0 votes Thank Flag Link Sat Sep 1, 2012
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