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I'm buying land in HPP Next week... Surprising me were all these fees. I understand some, but It seems like I'm paying for some when I shouldn't or at least be sharing it with the seller. Heres the list on a $45,000 HPP Acre. First American Title is the Title Company.
-Closing reserve fee $100 (???)
-Road Maintenance $179 my portion is 104.46 (I understand this)
-County Tax $39.08 (One month left, seller paid 11 months) (I understand this)
-Escrow fee $300 (??? why I pay, I'm paying 775 for my house being sold in Michigan, now another 300).
-Overnight Mail 26.04 (???For what I don't know) AND I didn't request this...or OK the overnight. What overnight, I haven't gotten anything overnight. If someone asked me I would have had them sent whatever this is for regular mail.
-Title Policy $178 (???? Don't just assume I need it... Everything is clear on the sellers part)
-Recording deed $50
-Transfer fee to Hpp association $200 (HPP Association told me to question why I had to pay all of this).
$45,000 now turns into 46,000.
Any answers... on how I should deal with this? Need to know by Monday.
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1. You will get the Closing Reserve Fee back two weeks after closing.
2. The escrow fee is high, the escrow company I usually use charges $175 on a $45K purchase.
3. It's one of the junk fees. The escrow company should just e-mail you the documents for you to print out.
4. Title Insurance is high too, my escrow company charges $100 on a $45K purchase. Regardless, it's a necessary evil and it protects you, the buyer and has nothing to do with the seller.
5. Most homeowner associations charge a transfer fee when there is a change of ownership of the property. Call HPP and ask them how much they charge. Escrow can't charge you more than HPP is charging.
Overall, most real estate agents know how much escrow companies charge and give an estimate to their clients before they write up an offer. The Purchase Contract clearly specifies the additional closing charges on Pg. 4 (Section C-11) but you probably didn't read it. I think the closing costs in Hawaii is way way way below of the closing costs in other States.
Aloha,
John S. Rabi ABR,CM,CRB,FHS,PB,RB
808.989.1314
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"
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Fees Fees and more Fees
We just bought our home here 9 months ago, and just sold our Ohio home a couple of months ago. Those fees sound similar to what we paid. All I can tell you is that I will never sell a house again, unless it's to my children. I will just rent it out,...I hated paying all those fees and commissions ( sorry real estate agents) that seemed so ridiculous and at times made up so someone gets a piece of the pie! But those are the hoops you have to jump through. I'm glad it over with and I can pretend like it never happened!
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quote:
Originally posted by ohanamama
...I hated paying all those fees and commissions ( sorry real estate agents)...
Guess what, the real estate agents hate paying all those junk fees that they have to pay too! 
BTW, you might be surprised to learn that the average real estate agent makes $32,000/year according to NAR.
Aloha,
John S. Rabi ABR,CM,CRB,FHS,PB,RB
808.989.1314
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"
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The closing reserve fee is there in case closing is delayed and therefore the prorated things like property taxes, road fees etc change. If they don't change, you'll get it all back. If they change by a little bit because closing is delayed by a few days, you'll get most of it back minus a few bucks.
Most real estate agents have a good idea of the fee structures for different escrow companies. For example, some charge the same fees for title insurance and escrow for everything under $100,000. Others have fee schedules that start at $40,000 or so (and for those smaller transactions, of course, its proportionally less). I know that I will show the fee schedules to a buyer if I think the fees may be significantly different. Of course, in the end, its up to the buyer and/or seller if they have a preference.
All that being said, I do love First American Title.
John Dirgo, R, ABR, e-PRO
Aloha Coast Realty, LLC
808-987-9243 cell
http://www.alohacoastrealty.com
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This is the answer from FAT...
Closing reserve fee $100 (???) This is a refundable amount which escrow collects for any unforeseen charges or adjustments. Once the escrow closes, we will refund this amount or there about to you.
Road Maintenance 179 my portion is 104.46 (I understand this)
County Tax $39.08 (One month left, seller paid 11 months) (I understand this)
Escrow fee $300 (??? seller pays, I'm paying 775 for my house, now another 300). Escrow fee is split between seller and buyer, and therefore, your share is $300.00
Overnight Mail 26.04 (???For what I don't know) AND I didn't request this...or OK the overnight. What overnight, I haven't gotten anything overnight. If someone asked me I would have had them sent whatever this is for regular mail. This fee is for the return of your Preclosing Documents once we email them to you. Escrow is not yet ready for this portion of the transaction, however, we input our fees at the opening of the transaction. Also, because of your location, it will be better if an overnight service is used for the return of the documents.
Title Policy $178 (????) This is your share (40%) and the seller is being charge $60%)
Recording deed $50 Buyer responsible to pay the recording fee for the conveyance document. Since this is Land Court property, fee is $50.00
Transfer fee to Hpp association $200 (HPP Association told me to question why I had to pay all of this). The transfer fee is paid by the buyer since the buyer will be the new owner of the property. Unless otherwise indicated, the whole amount is borne by the buyer.
I guess that answers the questions. Thanks for all your replies. I Didn't expect them all. If you're wondering, here is the land I'm purchasing...
http://www.hawaiiinformation.com/REsearc...MLS=210438&SubmitMLS=Go&MLSEVAL=y&page=1
You'll all be seeing more of me now that I've finally got things rolling. Maybe some of you will be my new neighbors.
A Hui Hou. [8D]
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TMYC. That is a very nice lot in the sunny section of HPP. You got it for a very good price compared to a couple years ago. I bought a lot on 15th st. in HPP 5 years ago and have built a house there since. Welcome to the neighborhood! This forum is a very good place for all kinds of info. Lots of great people here as you will find out.
Mac nut
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We just closed on 28 acres near Pahoa - your fees were a lot less than mine!
Puna: Our roosters crow first
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32k a year national average for real estate agents. hmm I live in salmon idaho pop.3000 we have 14 real estate offices here with about 30 agents, we have a running joke here that their are more real estate agents than bars restrauants gas stations and hairdressers combined. Most of which are clients of mine. They make alot more than the average person around here, their just smarter in investing their money,so its not taxable income (property land house investments).I do the same thing with my salon I think all sub-contractors and small buisness's have to take full advantage of all tax breaks and write offs otherswise we get slaughtered by our own gov. by taxes.
we have school teachers making 45-50k a year. not all most are on a average of 32k a year.
Not harping on any real estate agents, so dont get me wrong. god knows we need you for your experties's, but dont blow smoke[V]
setting my soul free....
setting my soul free....
quote:
Guess what, the real estate agents hate paying all those junk fees that they have to pay too!
BTW, you might be surprised to learn that the average real estate agent makes $32,000/year according to NAR.
Aloha,
John S. Rabi
Yep and considering the old saying that 20% of salesmen sell 80% of the product while 80% of salesmen share the remaining 20%, many realtors could not do it if their spouses did not work.
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