Closing costs, etc.

Asked by N, Los Angeles, CA Wed Jan 26, 2011

Hello: How much would be total costs assosiated with a cash purchase of a property based on $1.35M price in Los Angeles, CA? Thanks in advance.

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Toni Lee Anderson’s answer
Toni Lee And…, Agent, Yucaipa, CA
Wed Jul 6, 2011
Depending on your fianacing, or purchase price in cash, I always err on the high side and estimate 3.5% for closing costs and fees. Most times it will be less, but it is far better to plan ahead than be short in the end. Most escrows will "pad" the costs and collect extra $ for unanticipated fees. The unused portion of this "pad" will come back to you after closing. Please consult with a good Realtor and escrow company. They will be invaluable in negotiating these costs for you. Feel Free to contact me if you need assistance or advice. Good Luck!
0 votes
Richard Schu…, Agent, Los Angeles, CA
Wed Jan 26, 2011
BEST ANSWER
Figure less than 1% of the purchase price. All you really have to pay for is escrow fee ($3,000 or so) some various recording and messenger costs and possibly upfront property taxes.


Richard Schulman
#1 Listing and Selling Agent
Keller Williams Westside Realty
310-482-0173
schulmanrd@yahoo.com
http://www.RichardSchulman.com
0 votes
Morgan Scott, Agent, San Diego, CA
Fri Jun 17, 2011
Your closing costs will be much less with an all cash purchase compared to a financed transaction. The answer is, "It really depends". Which ulimately, does you no good. A few things will affect your closing costs. The two biggest will be escrow and title. The best way to know how much those will be is to call a Title Company like Fidelity National Title, or American Coast Title and get an estimte for Title and Escrow. Also it is typicall for the Seller to pay for the Owner's Title Policy so I would make sure you have your agent put that in the offer. If you are in to details that would probably be the best way to estimate your costs. In addition to title and escrow, you will have a home inspection, most likely an appraisal and a home warranty. You would need to call on quotes for all these aspects. To ball park it, I would concur with one of the other posts, 1.5-2%. Although there are standard things for which the seller usually pays for, remember its all negotiable!
1 vote
Heather Paul, Agent, Santa Monica, CA
Thu Jan 27, 2011
For a cash purchase, there are approximately 1 1/2% to 2% of the purchase price. It will depend upon the escrow companies fees, however they are going to be pretty low being you will be paying in cash. Have you found the home you would like to purchase? Homes are selling very quickly right now in this area, if you need any assistance, feel free to call me or email me anytime.

Have a great day,
Heather Paul
Coldwell Banker
(424)625-1037
1 vote
Carol Dotson, Agent, Beverly Hills, CA
Wed Jan 26, 2011
You should calculate approximately 1.5 to 2% maximum for closing costs. You will typically have to pay property taxes for the year in advance and those are approximately 1.25% of the purchase price.

Carol Dotson
Prudential California Realty
310-927-4107
cdotson@prula.com
1 vote
Jonathan Shi…, Agent, Redlands, CA
Sat Jul 2, 2011
With a good agent and/or a favorable situation, you may be able to get nearly to zero in costs. But those are the rarer cases (nearly everything is negotiable, as I am sure it has been made clear).

A good rule of thumb is 2%-- give or take a 1% margin. These costs tend to account for escrow and title costs.
These costs can also be split with the buyer and the seller or even taken wholly by the seller (good agent and a good seller)

As a cash offer, you dodge the biggest cost and time taker in the modern home buying experience, that being the loan costs.

However depending on exactly the home, costs and abilities for the seller to cover them can vary.

if you want an individual analysis, talk to anyone of us.
You know nearly each and every one of the southern California realtors here are willing and able to help you one-on-one, if you have not already chosen your representative.

Give any one of us a call. We LOVE helping.
0 votes
Gerard Carney, Agent, Spring Hill, FL
Sat Jul 2, 2011
That estimate should be given to you once you express an interest in a particular property, it varies from sale to sale.
0 votes
Adam Spradlin, Agent, Fort Smith, AR
Thu Jun 30, 2011
Rather than guess i would prefer to give you information that will direct you to the correct answer. Contact a local title company and ask someone there to get you a net sheet put together.
0 votes
Justin Ruzic…, Agent, Greenville, SC
Wed Jun 29, 2011
Home Buyer,

I am sure you have closed on your property by now, but to answer your question here is a list of closing costs items.:
Buyer's portion of the escrow holder's fee
Appraisal fee
Homeowner's insurance
Buyer's portion of title insurance (negotiated per contract)
Inspection fees (if not paid for at the time of the inspection)
Home warranty plan (aka home protection plan)
Homeowner's association transfer fee and fee to provide documents
Homeowner's association dues (prorated)
Property taxes (prorated)
City transfer tax
State tax stamps
Gas earthquake safety shut-off valve (applies in certain areas only)
Miscellaneous fees (notary fees, messenger fees, etc.)
Web Reference:  http://blog.house-guy.com
0 votes
Felecia Wesl…, Agent, Beverly Hills, CA
Mon Jun 27, 2011
Closing costs are customarily 1.5% to 2% of the purchase price. A reputable ecrow company may provide an estimated statement of what it will cost for a buyer in your situation. Best of luck to you!
0 votes
Spirit Messi…, Agent, Tucson, AZ
Sat Jun 18, 2011
Too many moving parts and so much depends on sellers, Title company, and etc. FYI, so many people here in Arizona are asking for sellers to pay for closing costs, that ADRE actually changed the purchase contract to include it. You may want to consider working with a local agent, most likely they will save you in price and costs more than they will cost you.

Best of luck.
Spirit
0 votes
Jason Lloyd, Agent, Elmont, NY
Fri Jun 17, 2011
around 2% and also if the seller is willing to pay some of it.
0 votes
Richard "RJ"…, Agent, Beverly Hills, CA
Wed Jan 26, 2011
A good rule of thumb would be approx. 2% of purchase price. If you are working with an agent and you have made an offer already, then you should find out who the escrow company is and ask for an estimated buyers settlement statement. This way you will know (itemized) how much is expected to close. I would be happy to assist you in any way possible. Thanks.
Sincerely,
Richard "RJ" Kas (SFR, SRES)
"Representing the finest properties from Los Angeles worldwide"
KAS Properties - Coldwell Banker Previews International - Beverly Hills East
9388 Santa Monica Blvd, Beverly Hills, CA 90210
310.859-5334 office - 310.488.9826 mobile - 310-273-0670 fax ATT: RJ
RichardKas@gmail.com - http://www.RJforLA.com - DRE: 01352771
Sellers Buyers Investors Leasing Consulting
0 votes
Lance King, Agent, San Francisco, CA
Wed Jan 26, 2011
As a follow up to others comments, with a cash purchase you are not required to have a lender's policy of title insurance, but you should definitely get your own policy. If you don't understand what protections this gives you discuss it with your agent/broker.
0 votes
Grant Linsco…, Agent, Los Angeles, CA
Wed Jan 26, 2011
Hi,

With a cash purchase your closing costs should be very low with minimal fees. Likely around 1% or less. To give you an idea, a client of mine paid $1,240,000 cash for a property not long ago and his closing costs were around $5K however each escrow company will vary in their charges. I suggest you call the escrow company and they can give you a closing settlement statement.

Grant Linscott
Keller Williams Realty
323.333.6222 cell
grantlinscottproperty@gmail.com
0 votes
Jodie Franci…, Agent, Studio City, CA
Wed Jan 26, 2011
Hi N,

You can estimate the closing costs to be about 2% of the purchase price. Probably it will be less since you are paying cash, as their wouldn't be any prepaid interest. Typically you will pay your share of the escrow fees, and prorated taxes. It also would depend on the sales contract and if you took on any additional costs that need to be paid through escrow. Also, if its a bank owned sale they may require the buyer to pay some costs that are typically associated with the seller. Let me know if you need any additional information.

Jodie
0 votes
Ron Escobar -…, Agent, Beverly Hills, CA
Wed Jan 26, 2011
You should get a title insurance, even if it is all cash transaction think about $2,700 (check with your title insurer as they are standard rates accross the board). Then escrow which should be around $3,200... so you are looking around $6K... whit this much oney on the line, you should have a competent expert working for you and advising you... a buyer's agent is compensated by the seller and you should take advantage of that...

Ron Escobar, MBA
Broker and General Contractor
Web Reference:  http://shortsalecentral.org
0 votes
Sara Mehrpou…, Agent, Los Angeles, CA
Wed Jan 26, 2011
If you're paying cash then you won't have to pay any title insurance fee--usually the seller pays for your policy and you pay for your lenders (so no lender exists if cash). You are looking at a couple thousand. Your real estate agent should be able to get you a copy of an estimate from the escrow company if you request one. Good luck.

Sara Mehrpouyan
Rodeo Realty
818-903-2040
0 votes
Christophe C…, Agent, Beverly HIlls, CA
Wed Jan 26, 2011
Hi there, closing costs run approximately about 2% of the sales price.
0 votes
Lance King, Agent, San Francisco, CA
Wed Jan 26, 2011
N,

Different areas have different customary practices for fees and splits. You can wait for someone who works in your area to chime in or call a local title company and they could give you an estimate.

Best Regards,

Lance King/Owner-Managing Broker
lance@fixedrateproperties.com
415.722.5549
DRE# 01384425
0 votes
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