What’s a normal cost to close with a title company?
I’ve got a new title company that’s telling me it’ll cost $800 to close on a simple land deal.
That seems high, but what do I know? How much do you all expect to pay when closing on a vacant lot with no mortgages?
That seems very reasonable, on average we pay between 800 and 1200. It probably also depends on if you’re getting title insurance that cost is adjusted based on the sales price. One thing I’ve learned when shopping around is to watch for the escrow charge. We used a title company out in AZ that had multiple offices. One office charged a $650 escrow fee, while the other charged just $200.
Keep in mind when you’re paying the title company you’re paying for the deed creation & recording, title insurance if you’re getting it, the title search itself and for them to handle the escrow, signing etc.
Sounds normal to me.
Thank you @Nicole. Are there title companies that will allow you to close with them without making you buy title insurance? I thought they all required this, but maybe I am wrong.
Hi Sally, if you are paying cash you shouldn’t be required to by title insurance. We usually do regardless just for peace of mind. If you’re using a mortgage to purchase the properties then yes it will be required to get as it insures the lender against defects as well.
@sallyhoskins if you think that’s bad, you probably shouldn’t get into commercial real estate. When you add up the cost of appraisal, environmental, survey, attorneys, and more, closings on that side of the business are rarely under $10K, all-in
Title can vary by region and company. SF bay cheaper than LA. But competing so cal will offer better if you bring more biz. Stay loyal to good folks.
I have regretted choosing the title company based on cheaper prices. I’d rather pay a little more and have the confidence that everything will get done properly. I recently had a title company forget to wire the seller their money. The seller called me two weeks later asking where their money was. So embarrassing. My bad for not following up with the seller after the sale. But still…
@Danielle that is a good reminder. It’s always a shock when you get a look at how bad some title companies are. Part of me thinks they’re an apples-to-apples comparison, but not always. You get what you pay for.
And of course, your experience with a title company is 90% a matter of which person you’re working with. The individual who communicates with all parties and makes sure everything is done correctly and on time can make or break the whole experience.
If you find a good person at a title company, sometimes these can be great people to hire away to work on your team. I know a few who have done this, and it has worked out well for them.