Who pays for Escrow?

[MDA]

In a forum sale, when let's say a domain is posted for sale at a fixed price (which is high enough to justify the use of escrow), a buyer comes along and wants the domain.

Who should pay for the escrow costs, the buyer or the seller?

 

[JoeCanadian]

Suggest you include the escrow fee as part of negotiations so that there is no misunderstanding. State your price - buyer pays escrow/seller pays escrow/split escrow fees - or however you want it to work.

 

[RJ]

I agree with PeterX, it should be discussed beforehand as part of the negotiation process.

In my experience, the buyer usually foots the cost or it's split 50/50 between buyer and seller.

 

[AdoptableDomains]

This is just my policy, but if it's under $600, I'll always quote a price with escrow costs added at the buyers option if they choose to escrow. About $600 to about $2,000 I'll usually offer to split the escrow 50/50. Over $2,000 I offer to pay the escrow because at those prices I as the seller want the assurance of escrow for the payment. Of course there are exceptions where I've agreed to pay or share escrow on lower amounts as a way to close the sale.

Some cases are different depending on the sales channel. On sedo and afternic site sales, the seller always pays the escrow if it was sold off their site. I think you have a choice if they didn't actually bring you the buyer.

 

[Spade]

I will almost always ask the buyer to pay escrow. In the event the buyer is not happy with this scenario, I will offer to split it, as long as its a standard escrow fee. Dont forget, some transactions through escrow.com require there 2nd level escrow service, which is 4-5 times as much. If the buyer has to use this service (required if CC purchase) then I will refuse to split it.

Justin

 

[WuLabsWuTecH]

in my experience, everything is wokred out before hand and i've usually seen escrows split. If its enough cash to matter to you, you should just foot the bill for a standard service. IF the buyer wants facier services, it would be fair to make him pay them.

 

[MDA]

I've never used escrow for a domain transaction, so I'd like to know more about the options out there.

Which are the most commonly used services and how much do they cost? And what does a more expensive service offer over a cheaper one?

Thanks

 

[WuLabsWuTecH]

from Escrow.com a popular one: http://www.escrow.com/support/faq/index.asp?qid=132

Comparison of the two levels and options

Fee Calculator: http://www.escrow.com/support/calculator.asp

As always, before using any escrow, make sure they are legitamate and not running a bogus escrow scam.