Escrow Fees: Defined & Explained
As you've probably figured out, there are a number of fees involved in a real estate sale - one of which is the escrow fee. This post will explain what an escrow fee is, what it costs and who pays for it.
What is an escrow fee for?
An escrow fee is money paid to your title company or attorney responsible for conduction your closing.
Who pays it?
In California, the party (buyer or seller) who traditionally pays the escrow fees varies from county to county. Here's a helpful chart that will show you a breakdown of fees and who pays by county,
How much are escrow fees?
In terms of actual costs, in San Diego County the cost for the seller varies as the sale price of the home changes. Most title companies use a formula that charges a base rate, plus a percentage rate per thousand dollars of home value. Assuming a home sale between $200,000 and $3,000,000, the fees for the seller will generally range from a low of $1,000 to a high of $3,500. Want to know about more fees? Check out this comprehensive lists of seller closing costs.
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