Definition of "Escrow fees"

Jason Coker real estate agent

Written by

Jason Cokerelite badge icon

Legendary Realty

The escrow fee is basically how the escrow agent or manager get his/her compensation for assisting and handling both the parties and the funds involved in escrow.

In real estate, the escrow fee is considered part of the Closing Costs and, because it’s in both parties best of interest, it can be split by the Home Seller and the Home Buyer, but there are some cases where the Home Seller or the Home Buyer will handle it by him/herself. Usually, this decision follows local customary practices, so ask your real estate agent – who usually oversees the escrow for you anyway – how is it usually done regarding who pays the escrow fee.

Now, the amount you (and/or the other party) pay for it is determined by the escrow agent and is negotiable - especially if you are in a competitive real estate market. But if there is an “average” cost of escrow fee, it would be of 1 to 2% of the price of the house entering escrow.

Real Estate Tips:

Talking about paying... Do you know what's 100% free? Our Agent Directory! Search away for a local real estate agent and good luck!

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

History of an individual's credit financial transactions including a detailed payment analysis. The creditor history is critical for performing a credit analysis to develop a credit rating. ...

The definition of property acquisition cost in real estate is the total recorded cost of a piece of real estate after reductions in price, incentives, closing costs and any other ...

Notice of a pending suit; a public notice given to prospective purchasers and any one else considering an interest in property that the title is being legally challenged, and the outcome is ...

See quantity survey method. ...

The meaning of topography defines the science of mapping a specific region’s physical features. In short, the topography describes an area’s characteristics, such as its ...

Right to enter and start construction or furnishing property that is in the process of being purchased. ...

Decline in real estate values occurring during economic hardships such as depression or recession. The late 1980s and early 1990s experienced a depressed real estate market. Many office ...

Any of several types of legal joinders whereby one or more parties unites with or joins other parties in a legal action or proceeding even though the party may not be a direct part of the ...

Anything that has physical substance and form, such as land and buildings. ...

Popular Real Estate Questions