Great question, and one I get often. When someone sells their house to me, we use an escrow company. And you should ALWAYS use an escrow company. Why? Because there are people out there who seem friendly and normal, but they are out to truly "steal" your house from you. But I digress.... When you sell your house, there are costs involved.
They are called "escrow charges".
They include: property taxes, transfer taxes, commissions, escrow fees, title charges, title insurance charges, termite fumigation, city inspection fees/documentation, etc., basically, all types of fees. Typically, the buyer and seller split those costs. FYI-property taxes up to the date of close of escrow are responsibility of the seller.
When you sell your Pasadena house to me, I pay all of those fees (except property taxes and your mortgage). I've learned over time, that paying ALL of the fees saves a lot of headache and misunderstanding. And it's just a great way to do business.
Here's a breakdown of a closing statement on a property I bought for $225,000:
- County Property Taxes (previous 6 months): $1,216.00
- Title Insurance: $1,354.00
- Messenger Fee: $37.03
- Sub-Escrow Fee: $75.00
- County Transfer Tax: $247.00
- Recording Fees: $103.00
- Escrow Fee: $1,800.00
- TOTAL: $4,832.03
Other Costs When Selling Your Pasadena Home
Except for the property taxes that were owed by the seller up to the day escrow closed, I paid for all of those costs, over $3,600. Now imagine you are selling your Pasadena home with a realtor. Then add on 5-6% for realtor fees and 1% for termite fumigation/repairs, that's another $13,500 to $15,750 on top of the $4,832.02! And remember, this example is on the sale of a $225,000 house! Almost $20,000 in fees on a $225,000 house is ALMOST 10% of your equity!