Closing cost for cash buyer

[Mauricio Hernández]

Hi; I am buying a property for 495K all cash and I fell like I am getting charge more than what supposed to be. I thought cash buyers only have to pay escrow fees and a binder fee instead I'm being charged $3,125 in fees including escrow and home owners insurance and a bunch of other charges fees messengers escrow pad etc. is that the norm?

[J Scott]

In general, fees for a cash transaction should get broken down as:

1. Title Search/Insurance
2. Attorney/Title Closing Fees
3. Pro-Rations of Taxes/Utilites
4. Junk Fees

#1 is generally pretty consistent per state. #2 is typically in the $300-500 range, in my experience. #3 is out of your control. And #4 is typically pretty negotiable -- these are the fees you should review carefully and make sure that you're getting what you're paying for.

Insurance costs aren't closing costs, and the title company would only be putting insurance costs into the transaction if you're telling them to. If you're not telling them to, where would they be getting this information?