Escrow Cost Case Study

1) Escrow and legal costs. Escrow cost is required by law, and different states have different costs. When a project seeks a site, the clients need to think about escrow costs and make sure it is worthwhile to pay the amount of money. Besides escrow cost, there are also other kinds of legal and inevitable costs. These costs vary from locations and companies. When the owner wants to choose the site, he should consider how much he wants to spend on those costs. He also needs to think about the purpose of the project. If it is not a profitable project or he dose not have much funding, he may not need to spend too much money on those costs. Some states may have unique requirements for some fields. Owners in those fields with small company or limited resources may need to avoid those locations. …show more content…
In order to be well prepared to the project, owners need to spend money on it. For example, the owners need to pay for extending or upgrading roads. Before the project, the owner needs to take a look of the roads near the potential location of the project. He can discuss with the project managers to see how much he needs to spend on it. Sometimes, even if the company is willing to spend money on extending the road, the limited width of the road may still reject the project. The owner also needs to think about the extensions, capacity, and redundancy of utilities. Utilities are related to the purpose of the project. If the project requires more capacity than the maximum of the capacity among that area, the owner may need to change all the utilities among the area or simply change a site. The decision should be made based on if the owner think changing all capability among the area is worth than changing the site. In addition, site selection may involve costs of mass grading, which is another factor that should be