Plumbers give advise regarding the real estate business.
The guy that does my lawn, he's see's himself a real estate expert also, since he does mow a lot of grass and offers copious advise on how the real estate business works.
Seems everyone is a 'self-declared' adviser on what the structure of the real estate industry is or should be. Then to 'whisper,' it's a secret call me is a most offensive of all.
There are no little secrets. There most certainly DOES exist distortions of the truth.
Some real estate enterprises have established a business policy recognizing the principle "you simply can't stay in business giving stuff away."
If resources are used to market a home, these companies want those expenses paid for. For instance, when you finance a house, the lender may require a survey. Does the mortgage broker pay this? Does the bank pay this? No, the citizen pays for this. The same is true when your home is advertised, when the home tour movie is made, the back story is written, the social network is engaged, the broker event hosted......these are all expenses that must be paid by someone. Your HVAC technician, appliance repair, and most contractors also require at the very least a trip fee, a co-pay, or office fee when they are required to spend their time and resources. After all, they are engaged in a business, not a hobby.
IN additions to these expenses real estate professional MUST pay, some mortgage brokers try to get into the real estate agents pocket by compelling the agent to fund the mortgage companies or broker fee.
One could assume the mortgage broker believes that if 'someone else pay the junk fee on behalf of the buyer, they do not exist! There's a cold hard truth.
Usually this shell game is a 'one way' exercise where ONLY real estate agent funds are involved! It seems everyone else in the business is being paid for the costs they incur. Some even choose to extort funds from others. When the real estate agent exercises the same discipline, questions appear regarding, "Who will do it for FREE?"
Why is their an expectation that real estate professionals should spend freely when success really depends on the decisions the homeowner makes? Success really depends on the home buyers ability to make a decision? There are seven parties that determine if a real estate transaction will fail or succeed, and the agent, being only one of the seven, is expected to pay for them all! Do you not see how ironic this distortion is?
Most real estate companies, mine included, unfortunately, still operate on a hobby model. If a seller changes their mind, they have the freedom to cancel the contract and no fees apply. The costs I incur, however, remain real and must be paid, by me!
Many of the home owners who have grown to trust be, began their experience realizing there are no fees, junk fees of any kind, whether imposed by my broker or other source, will be passed on to them.
Junk is Junk, regardless of the label applied. When a home buyer or seller just 'changes their mind' they have rendered all the effort and expenditures of the real estate agent, JUNK! And you apparently believe that is OK.
Now, this is one of the great things about real estate. The home buyer and seller DOES have a plethora of choice. You can:
2. Pay as you go,
3. Pay up front,
4. pay at closing, or
5. not pay at all.
Each choice has benefits and consequences. But you do have a whole world of choices. And there are no little secrets that are kept in the dark shadows regarding the real estate side. Simply state what you want and you would be surprised how quickly the solutions will come to you.
If only the mortgage business was as transparent. If you want to avoid all the 'fees in disguise' piled on by many mortgage brokers, go as quickly as possible to the nearest credit union. They are 'hands down' the lowest cost provider of home mortgages. Even E-loan has proven highly effective. Now that's some cold hard truth.
There most certainly is a 'cold hard truth. The truth is you do have choices. Local lenders are valid options also. Simply enter you zip or city and choose an "A" or "B" graded lender.
Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL