03-16-2011 03:53 PM
Can all you experts give me an estimate on a home purchase that will have no mortgage? I know about the home inspection. But if we are paying cash is there any other fees since no credit reports, etc. We will probably opt for title insurance so there is no risk. Can anyone estimate typical closing costs on a $1 million property in California if no loans are involved?
Thanks in advance.
03-16-2011 07:30 PM
You may still want to opt to get an owner's title policy. In Southern California it's typically paid by the seller, in Northern California it's typically paid by the buyer. On a $1,000,000 sales price the owner's policy would probably run around $1,700. You'd still have an escrow fee, but since it doesn't involve a mortgage it may be reduced. On that sales price you could figure it'd be around $3k/side if a mortgage was involved, perhaps only $2k without a mortgage involved. Perhaps a hundred or so more in miscellaneous title & escrow costs.
03-16-2011 09:41 PM
Thanks for the great information. I've read many of your posts and they are always super helpful. We are buying in the San Diego area so your advice is helpful regarding the seller typically paying for the owner title policy. Thanks again.
03-17-2011 09:46 AM
You are welcome. If you are working with your own real estate agent, they certainly will have a preferred escrow/title company their listings typically go with, and that company can provide you a breakdown of the expected closing costs a cash buyer would have.
03-17-2011 10:27 AM
I also found this website last night which looks really good at helping to estimate closing costs with or without a mortgage. www.closing.com
MIckie, I'm planning to buy in either the Carmel Valley area or possibly in Santaluz near Rancho Santa Fe.
03-17-2011 10:31 AM
Nice. My old boss lives in Carmel Valley and I spent about 10 years working in Encinitas for him. I had to drive through Rancho every day to get to work.
Great area. Good luck with it all.
03-17-2011 10:37 AM
Thanks Mickie! Yeah, we were thinking about La Jolla but my wife thinks it's a bit too big of a bubble for our kids. If I was single, definitely I'd pick La Jolla but we're thinking about the kids and the schools in Carmel Valley and Poway school district are super good....so that's why we're looking at that area.
03-17-2011 10:41 AM
In all honesty, I am not a big La Jolla fan. It is a great place to hang out and such, but the schools as well as the kids their have a real tendancy to be very spoiled, rude, and snobbish and they also have some major drug issues relative to other similiar socioeconomic school districts. Too many spoiled kids with money ending up in rehab at 15... Again, not a fan. Carmel Valley and Poway are both great schools. As a matter of fact, schools is why we moved up North because we were not in a position to buy in Poway or Carmel Valley and wanted a nice place with great schools.
03-17-2011 10:49 AM
YES, that's EXACTLY what we've heard as well from others about La Jolla. We LOVE the area but that's what I meant by a "bubble". Also, we heard kids are bused in from other poorer areas which we're not a big fan of either. I think even if you do a great job of parenting...if you're kids are surrounded in that type of environment it can be tough.
Carmel Valley and Poway school district seems ideal for us. A bit further out from the city but that's ok as my wife doesn't work. Prices have dipped since the peak in Carmel Valley and Santaluz area but they are still darn expensive. We need a 4/5 bedroom house so all the ones we are looking at are over $1 million. Hopefully they come down a bit more before we buy here towards the end of the year. Take care.