Escrow Fees

[vivasinski]

I am in the process of buying a lot in Nanawale, but the seller and I were both shocked by the estimate we received for closing costs. We were quoted a grand total of just over $2,000 to close on a $10,000 property. I would think escrow fees are pretty standard and it looks like there are only a couple of title companies in East Hawaii anyway. Any advice on bringing the closing costs down?

[freespirit]

Aloha are you borrowing for the land/lot a regular loan? Have you tried obtaining a personal loan from your bank? Depending on your credit worthiness most banks will offer personal loans anywhere from $5,000 - $20,000 and the interest usually is not that high, interest less then credit card interest rate. If you could qualify for a personal loan most times their are no closing costs.

OR as the seller to pay for all or part of the closing costs.

Aloha,

[vivasinski]

Mahalo for your reply, Freespirit! The owner is carrying the note at an interest rate that is way below market. My understanding is that even if we paid cash, we'd still have to pay title fees, escrow fees, recording, etc. Is that not the case?

[rocketman]

We just closed on a lot in Dec. located in Hawaiian Shores, 7K for the lot and $820.00 closing costs thru First American Title.

[justthefacts]

use a private attorney , just bought a property paid $450.00 for services .

[ericlp]

Does one have to use Escrow? If you do your own leg work and look up the records yourself, I'm sure you could just agree that there are no liens or debts recorded on the property and taxes have all been paid up. Not sure how complicated it would be, but, seems to me like it couldn't be that hard and save yourself some cash, it's just silly to pay those kind of fees for a 5-10K dollar property.

You could then just record the property yourself Quit claim deed or hire an attorney or real estate agent to handle the paperwork. Real Estate agents get a kickback for sending clients to the the title agency.

[VancouverIslander]

When we purchased our cottage, we used Title Guaranty Escrow Services. We were purchasing in cash, so maybe that helps, I really don't know. Escrow charges were just under $300.00, title charges around 180.00 with around 80 more in fees and taxes. We had a survey done (just under 900). This was 2012.

Just call me Mike

[Seeb]

The private mortgage is the thing. they tend to have way more problems

[terracore]

$2k can't possibly be right.

We recently completed a complicated owner-finance property sale for a higher sale amount, and the total title/escrow fees, completely inclusive, including added attorney fees, were about $850.

Either somebody is trying to rip you off, or the 2k includes other fees not associated with title insurance fees like back taxes or previous liens. If there are back taxes or liens those are the seller's responsibility.

Typically, the title/escrow fees are split between the buyer and seller. When all is said and done, if you are buying a 10k lot in Nanawale your share of the title/escrow fees should never be more than ~$500.

Who is the title company?

ETA: Does the 2K amount include staking fees? If so, you can lower the amount by renegotiating such that the seller pays the staking fees, or you can choose to not have the property surveyed or staked.

[vivasinski]

Thanks, everyone! The title company who quoted us the $2k is Title Guaranty. The $2k is total, which will be split between seller and I. It's a private party sale, we are not going through a real estate agent Items listed on the estimate are title fees (research & insurance), escrow fees, closing costs, attorney's fees, etc -- No staking, back taxes or liens.

Any recommendations of a good real estate attorney or another title company?