discuss "What should the industry norm be for splitting escrow transactions?"

[Jen-Sin]

Things are simplier when seller or buyer pays full escrow fees. The payer decides the escrow service and option.

Many variables come into play when escrow fees are spilt between buyer and seller.

1. Who decide which escrow service?
2. Who decide standard or premium service (DN.com and escrow.com offer 2 services)?
3. Do funding / payment processing fees get spilt too?
4. Do disbursement / withdrawal fees get spilt too?

Even when buyer or seller agree to pay full escrow fees, does that include additional funding / payment fee and / or disbursement / withdrawal fee?

The industry service providers seem to have differing standards. Following are some examples and not exhaustive:

FUNDING

• DN.com charges additional 5% for PayPal payment
• eCop charges additional $50 for international bank wire
• Escrow.com prices credit card / PayPal option into their premier escrow service.
• Flippa Escrow charges additional 2% to the buyer who pay by credit card.
• Sedo charges additional 3% to the buyer for sales above $500 and pay by credit card / PayPal.

WITHDRAWAL

• ECop charges $5 withdrawal fee AND $50 wire withdrawal fee or 2%/up to $45 for PayPal withdrawal
• Escrow.com charges up to $60 disbursement fee

Andrew Allemann compared the cost of escrow here in an outdated article but highlighted the many other costs besides escrow: http://domainnamewire.com/2014/01/21/domain-escrow-price-comparison/


Take part in the poll on what you think should the domain industrial standard be.

Thank you.

 

[djum]

I voted for #1, but it should be #4, imho.

 

[Raindrops]

To the best of my knowledge number 1 (my vote) is the standard, but I have seen listings where it is stated "Buyer handles all escrow fees." In the event where the seller states "all fees"or "buyer responsible for fees" - I can see where confusion could ensue maybe.

Definitely a good question, and probably something to give more thought to when listing a domain that might hit Escrow.

 

[21x20]

I always do buyer pays fees.

 

[SirDrago]

I voted #1 but as others have mentions sellers should explain in Detail what those Fee's actually include.

 

[WPM]

Having yet to use an escrow service... I look forward to the opinions.

If the escrow company is making the deposts into one big interest bearing account, I think they should disclose it so you can use that as a negotiating point.

Everyone will hit you up for fees. I feel if the sale is BIN then perhaps a 50/50 split. But anything below the buyer pays all. IMHO

Regards,

WPM

 

[NameYourself]

Every sale is different, the typical standard is usually for the buyer to pay escrow fees and payment fees. However, some buyers who have not purchased a domain or used escrow before are sometimes taken back to realize there are other fees. If this is the case it is best to just cover it for them, especially if the whole process is new to them.. the last thing they want to hear is more fees. This leads to reluctance, and reluctance often leads to sales that do not complete.

 

[vlad74]

I think that the standard is that funding fees always pays the buyer, escrow fees - as agreed, withdrawal fees - the seller.

 

[WebInvestments]

Hope I am not off topic, but would it be safe to mention on a Domain Landing Page that Escrow Fee will be covered by the seller? Is there a possibility that this would confuse the buyer with the 'deposit fee' that Escrow charges from the buyer. Makes sense?

By Escrow fee, I mean the price for which the domain is being sold to the buyer and the fee charged by Escrow for the transaction.

 

[Michelle]

Good question

Knowing where this has come from I would just like to say

Just make sure it is clear what is payable and by whom right from the start. Nobody likes a surprise which could be the difference between selling and not.

 

[alien51]

In my side of the fence, the Buyer does not need to worry about anything.

I pay for ALL the fees, because these fees are already included in the price tag of the domain. Because the price of the domain is arbitrarily set by me.

 

[WebInvestments]

Just make sure it is clear what is payable and by whom right from the start. Nobody likes a surprise which could be the difference between selling and not.

My thoughts exactly. Looks like I have to edit couple of landing pages of mine.

In my side of the fence, the Buyer does not need to worry about anything.

I pay for ALL the fees, because these fees are already included in the price tag of the domain. Because the price of the domain is arbitrarily set by me.

You read my mind dude. That is exactly why I prefer to mention the Escrow fee will be covered by us (the seller). This is to not to confuse the buyer with anything and obviously to set the sale smoothly.

 

[alien51]

Yes, it is crazy to be haggling and arguing about escrow fees, when your ROi is 3,000%

Your goal should be to get the transaction done as fast as possible. All this accounting stuffs, are just delaying the money going to your wallet. So pay the fees and get it over with.