The Fees You Pay When Selling a Home


When you sell a home, you will still incur some fees. I brought in an escrow officer to help explain the additional costs.

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When you sell your home, there are are certain costs you'll need to pay. I've brought in Alicia Smith with Premier Services again to help me break down these costs.

Everybody knows about commissions, but not many people know about title and escrow fees. Escrow fees cover the mutual third party costs for the buyer, seller, and lender. Title fees cover insurance by the title, what they're clearing, and whatever they're providing. 

Some costs in a closing statement for title fees include an owner's policy and sub-escrow fees, or the cost incurred to handle the funds. There would also be endorsement fees, which are requirements added onto the title by the bank. They can vary, or not be required at all. Then, you'll have messenger fees, because everything needs to close ASAP. Private delivery services can be used as well.

Wiring fees are incurred because you're borrowing and wiring out payment on the seller's behalf for things like property tax or any property liens. The transfer tax is another fee because every county has a required transfer tax. The owner's premium is a title charge to the seller as well. You may see the word "optional" on there, but that doesn't mean the payment is optional.

Owner's premium forms have an 'optional' section, but that doesn't mean the payment is optional.

It is optional in that it can be used on both the East Coast and West Coast. On the East Coast, fees are disclosed and the parties responsible for paying them are slightly different than they are here on the West Coast. Here in California, we have a pretty standard way for buyers and sellers to pay fees.

Additionally, you want to watch out for junk fees. There used to be miscellaneous fees and junk fees that weren't listed, but because of new regulations, it has tightened up quite a bit. Lenders have to stay within 10% of any change of the fees that we disclose, and all the fees need to be as close as possible to what the actual fee is going to be. Some may consider messenger or wire fees to be junk fees, but they're not because they're necessary for the title company to do their job. 

A big thank you to Alicia for joining us again to break down title and escrow fees that home sellers pay. If you have questions for Alicia, you can reach her at 949-383-5527. 

If you have any questions about real estate or our local market, give me a call or send me an email. I'd be happy to help.