escrow fess in california

Asked by Kevin Gerety, Franklin Lakes, NJ Sat Nov 24, 2012

i am told its about 3% which sounds high. is that about right?

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Benie, , San Diego, CA
Fri Aug 23, 2013
It depends on what escrow company is handling the file and who your lender is. If your lender charges origination fees than yes it can be at 3%. Some escrow companies have outrageous junk fees that they charge and this can effect the amount of closing costs. My company doesn't charge origination and we may be able to help with some of the closing costs.
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Terri Vellios, Agent, Campbell, CA
Sun Nov 25, 2012
It depends on where you are purchasing. Each county and city vary. Some cities have transfer tax, some counties are seller paid, others, buyer and some split. Below is an example of fees which may or may not be applicable to your purchase;

Title Insurance for the Buyer
Title Insurance to the Buyer Lender
Escrow Fee
County Transfer Fees
City Transfer Fees
HOA documents
HOA transfer fee
Property Tax Prepaids
Home Owner Insurance Prepaids
Recording Fees
Lender Fees
Flood Certification
Possible Mortgage Insurance
Home Warranty
Credit Report

Your agent, lender and escrow company can all give you an estimate based on the purchase price, type of purchase, and location of property.
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Teresa (Tera)…, Agent, San Diego, CA
Sun Nov 25, 2012
On a cash purchase (no loan involved) the buyer's closing costs are fairly reasonable. It's the loan-related costs that run the fees up, such as the 1% loan origination fee. The approx closing costs (including escrow fee, pro-rated property taxes, property insurance, appraisal, home inspection, etc) on a $500k cash purchase would be in the vicinity of $5700. Add any loan fees quoted by your loan officer if a loan is involved.

If you are considering purchasing a home in the San Diego area, let me know what type property (house/condo), number of bedrooms/baths, what areas, and what price range you are interested in and I can send you detailed listings that meet your criteria.

If you are referring to the sale of a property, the seller's closing costs (including owner's title policy, document transfer fee, pro-rated property taxes, escrow fee, home warranty, commission, etc) could be in the vicinity of $39k. Contact me if you would like help with the sale of a property in the San Diego area.

Tera George

Coastal Realty
(760) 931-0345
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Sinead McAll…, Agent, Oceanside, CA
Sat Nov 24, 2012
Yes, 3% for an escrow fee would be high. A good rule is $350 base plus $2 per thousand (although there is no fixed rate- each company sets their own). You should be able to get a good faith estimate from your agent, escrow officer or loan officer.

Sinead McAllister
McAllister Homes Real Estate
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Patti Adams, Agent, San Diego, CA
Sat Nov 24, 2012
Michael gave you good data below. There are other costs involved in buying or selling a home that are collected in escrow so if someone told you "three percent" they may have been talking about total fees/costs. Those costs vary if you are buying or selling...sellers customarily pay certain fees, others are split, and some are assumed by the buyer. Included are title insurance costs, documentary transfer tax, prorated property taxes, etc.

If you would like an estimate, let us know the price you are anticipating and whether you are buying or selling and we can work it up for you.
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Cindy Davis, Agent, San Diego, CA
Sat Nov 24, 2012
I usually advise 2.5 to 3% of purchase price. Everything in California is high!! If you want to buy here, it's just a fact of life!

About half of your total closing costs will likely be lender related - costs of origination fee, title fees for the loan, doc prep fees, the list goes on...

Of the other half, you will pay your fair share of escrow fees, pre-payment of property taxes, any relevant hoa fees, and so on.

It is important to ask your lender AND escrow for a good faith estimate.

Kevin, Please let me know if there's anything else you need help with.

All the best.
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Bill Hays, Agent, Cardiff, AL
Sat Nov 24, 2012
Hey Kevin:

Either your lender or escrow officer can provide you with a good faith estimate of what your closing costs will be in general and for a specific property you have in mind. The fee for the escrow itself is not even close to 3%, but can vary from company to company.

Good luck in Carmel Valley. Contact me if you would like more specifics or better assistance.

CA DRE 01775528
NMLS 980076
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Joan Patters…, Agent, Rancho Cucamonga, CA
Sat Nov 24, 2012
I am sure you are talking about all the closing costs. I typically tell my clients that they need to plan for at least 3% of the sales price in closing costs-not including the down payment. Escrow fees are based off the sales price too, but they should be in the 3% total. I am not sure how much they charge in New Jersey, but you can always call the escrow company and make sure.

Good luck!

Joan Patterson, B.A., G.R.I., Realtor, License #01431647
Keller Williams Realty
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Jonathan and…, Agent, San Diego, CA
Sat Nov 24, 2012
I think that maybe you are referring to closing costs which can go up to 3% but that is a bit high. The escrow fees themselves shouldn't cost you too much but your loan origination fees, which are part of your closing costs, can cost you a pretty penny. It's something that I would discuss with your lender.

Let me know if you have any other questions!

Theresa Mack
(858) 230-4850
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