Escrow Fees too high??

Asked by KS, Playa del Rey, CA Wed Nov 6, 2013

My escrow fees seem high. Sale price: 450k
Here are just the escrow fees (Not including any title or lender fees)
Escrow fee: 1100
Loan tie-in fee: 450
Messenger fee: 100
General Processing fee: 125
Audit Fee 25

Are any of these negotiable?

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5
Robert Spino…, Mortgage Broker Or Lender, Mill Valley, CA
Thu Nov 7, 2013
KS,

You're doing fine. Most of these seem in line and I would expect that a few will be adjusted downward to reflect actual costs.

Best of luck in your new place!

Rob Spinosa
rspinosa@rpm-mtg.com
0 votes
KS, Home Buyer, Playa del Rey, CA
Thu Nov 7, 2013
Thanks everyone. All answers were helpful. I'm too late to change the escrow as closing is next week. Also, it doesn't look like they are too far off on fees. I did ask them to send the documents to 3 different lenders. I will try to get a discount of $100-200 but wouldn't be pushing it.
0 votes
JR Thrasher, Agent, San Diego, CA
Thu Nov 7, 2013
All fees are negotiable. For example the "loan tie in fee" was originally created to cover the additional work required when a buyer uses a first and second loan on a purchase. However, as thins have gotten tighter in the real estate market a lot of escrow companies charge this fee regardless of how many loans you have. If you only have a first and no second I would try to get this fee reduced.

All that being said the fees don't sound to far off from normal.

J.R. Thrasher
http://www.SanDiegoRealEstateVeterans.com
619-929-0105
0 votes
Steven Pawera, Agent, Los Angeles, CA
Wed Nov 6, 2013
ALL these fees are negotiable BEFORE you and the seller agree on an escrow company. While the selection of the escrow company is a negotiable item, many agents will tell you (either from ignorance? or laziness?) that the seller gets to choose - and you wind up with a contract which you present to the seller that specifies escrow to be 'seller's choice'.
And the seller generally doesn't care either. Most often he goes with the preferred escrow of his listing agent. This does bring stability and predictability to the process - and that may be worth more in the long run than trying to shave a few dollars off fees.
And from the item 'loan processing fee' - I sure hope you are the buyer. And getting a loan (as compared to all cash). :)
0 votes
Marco Pirozz…, Agent, Manhattan Beach, CA
Wed Nov 6, 2013
Hi KS! Thanks for your query. In my experiences the Escrow fee for this particular transaction is not out of the norm, and reasonable based on the purchase price category. However, I would try and see if they can shave off Messenger Fee to at lest $50 and General Processing fee to $80 or $100.
I hope this helps. Marco
0 votes
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