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Buyers Costs Associated with Escrow

By
Real Estate Agent with Lion Real Estate 0149496

 

Buyers Costs Associated with Escrow


Our buyers always ask how much money do I need to buy a home.  In fact I just had a request to go over these costs with a buyer I am meeting today so thought I would publish this list.  This list is based on buying a home in Fresno CA.

 

 1)       Earnest Money Deposit (EMD).  This is the amount of money you will deposit into escrow within 3 days once your offer is accepted.  Usually $1,000 or 1% of sales price.  This will do towards your down payment or if you are financing 100%, will be refunded to you at close of escrow

2)      Professional General Home Inspection:  Optional but recommended.  A home inspection is a visual inspection of the structure and components of a home to find items that are not performing correctly or items that are unsafe. Approximate cost is $200 to $300 depending on size, age and components of home.  Payable at time of service, usually within contingency period (17 days).

3)      Appraisal fee:  Appraisals can be placed on a credit card and are approximately $400 to $500.  Payable at time of ordering, usually within first week of escrow

4)      Pest Inspection:  Optional. Performed by a reliable pest company to look for termites and dry rot.  Inspection approximately $50 to $75.  Payable at time of service, usually within contingency period (17 days).

5)      Roof Inspection:  Optional.  Performed by a licensed roofing company to access life of roof.  Inspection approximately $75.  Payable at time of service, usually within contingency period (17 days).

6)      Closing Costs:  Usually 3% to 4% of sales price, depending on time of year, escrow company and lender fees.  Closing cost assistance may be available from seller or lender.  Due at close of escrow.

7)      Home Warranty:  A home warranty is a service contract that covers the repair and replacement costs of home appliances. The warranty generally covers equipment and appliances such as dishwashers, plumbing systems, electrical systems etc. that fail due to normal wear and tear.  Approximately $360 payable at time of order.  Can be ordered at close of escrow or after.  Cost may be split or covered by seller.

8)      Down Payment:  The balance of the down payment is due prior to the close of escrow, usually 2 to 3 days prior.  Down payment varies on type of loan.  Down payment must be in form of cashiers check or bank wire.

9)      Other Inspections:  Buyers can choose a range of other inspections to be performed based on the property.

 

This list is pretty comprehensive and costs are approximate only based on buying a home in Fresno CA

Comments (4)

Patrick White
Home Driven Realty, Inc - Baldwin, NY
Driven to bring New Yorkers home

Good Afternoon Stephanie

Thanks for the post and information. Very concise and a nice checklist. have a great week

Oct 14, 2012 04:49 AM
Stephanie Greenberg
Lion Real Estate - Fresno, CA
Fresno Homes For Sale

Thanks Patrick!  The buyer I met with today said it really helped him put the cost in to perspective.

Oct 14, 2012 09:32 AM
Adam Malachi
A 2 Z Realty LLC - Castle Rock, CO
QSC,CDPE,CIPS,CNE,CRB,CRS,GRI,MRE,SFR

Great Post! Very informative blog for the buyers!

Thank you very much for sharing.

Oct 15, 2012 01:54 PM
Jana Holmstrup
Jana Holmstrup - CCO - Kings Mortgage Services, Inc. - Visalia, CA

Nice detailed explaination of the various costs involved - well done!

Dec 16, 2012 04:51 AM