Do I need to pay for escrow when buying a domain?
Who Pays Escrow Fees?
In most domain transactions, the buyer covers the escrow fee. However, this is negotiable, and sometimes the seller pays or the fee is split.
Escrow fees are usually a percentage of the sale price, often ranging from 1% to 5%, with a minimum fee. For example, Escrow.com charges around 3.25% for domain name transactions.
Some marketplaces include escrow in their commission, so you may not see a separate fee.
Is Escrow Worth It?
Yes, escrow is highly recommended for domain purchases, especially for high-value transactions. It protects both buyer and seller from fraud.
Without escrow, you risk losing your money if the seller doesn't transfer the domain. With escrow, your funds are secure until the domain is in your account.
The fee is a small price to pay for security and peace of mind.
- Escrow fees are typically 1-5% of the sale price.
- Buyer usually pays, but it's negotiable.
- Some marketplaces bundle escrow into their fees.
- Escrow protects against non-delivery and non-payment.
Common mistakes
- Assuming escrow is always free; there is usually a fee.
- Not factoring escrow fees into your budget.
- Skipping escrow to save money, which can lead to fraud.