Proceed with Extreme Caution, after all... YOU be the only one
paying the bills once the dust settles!
The truth about hidden real estate fees,
It's YOUR MONEY; keep it!
YOUR ATTORNEY; Hire an attorney to review
all documents before signing anything. All documents
can be provided to you in advance from a reputable
agent, mortgage broker, title company, etc. in the
form of a "DRAFT", "GOOD FAITH ESTIMATE", "BUYERS
ESTIMATE OF CLOSING COSTS". Buyers, reviewing
all documents with an attorneys assistance WILL SAVE
THOUSANDS OF DOLLARS IN HIDDEN FEES!
YOUR AGENT; Fees charged to you from your
own agent? These "Garbage fees" a.k.a broker
compliance fee, processing fee, administration fee
or whatever they may call it. They will appear
on the purchase agreement that your agent wants you to
sign. Fees range between $150.-$495., do not agree to
pay this. It is only the beginning of the
nickel and dimming that occurs throughout the
transaction. YOUR AGENT CAN PAY THIS IF THEY WANT TO
CLOSE YOUR DEAL. Not sure how these additional
"GARBAGE FEES" falls in the category of protecting
your best interest?
YOUR MORTGAGE; Pay close attention to the
mortgage documents, recommend to hire an attorney to
review them. An attorney may cost a few
hundred dollars, but if you followed the above
recommendation you are now even. An experienced real
estate attorney will save you THOUSANDS in mortgage
prep fees, credit fees (credit checks are $20. not
$200.), mortgage application fees
and a whole lot more! Paying upfront for the
appraisal is typical, but that is it! Again, Not sure how these
additional "GARBAGE FEES" falls in the category of
protecting your best interest?
YOUR HOME INSPECTOR; If your agent
referred the home inspector to you be prepared to pay an
additional 10-15% in some creative form.
Find your own
inspector. This way you will not have to worry
about any type of "Conflict of Interest", winks or
whatever is said and done without your presence.
NEVER use an Inspector "Recommended" from your
agent, this is not rocket science, as long as the
inspector is licensed, insured and been the the
business at least 5 years, you are safe, the home
inspector will handle the rest in a professional and
due-diligent manor!
YOUR TITLE INSURANCE; Yes they all add on
"GARBAGE FEES". This is probably the best one, While
all your bags are packed, truck is loaded for the
big move and you are so excited about moving into
your new home... They ALSO try to hit you with
another "GARBAGE FEE" (usually $450.-$700.) a.k.a.
Processing fee, closing fee or again whatever they
may choose to call it. Make the title company remove
the fee or you will not close the deal, period.
Click here to review
Title
insurance costs.
YOUR HOME WARRANTY; yes, the price is
pumped up so they can pay the agent and or broker
for sending them the business. Never pay for a
home warranty, agents typically split the bill on
this, although they will first try to get the
anxious home seller to pay for it first.
Bottom line they get the home warranty very cheap,
usually 10-20% less.
Answer; To YOUR AGENT and their broker
in kickbacks for sending them the business, you
pay for the thank you letter. If you
read your purchase agreement/offer to purchase
thoroughly... It will be disclosed in the smallest
paragraph of the purchase agreement/offer to purchase
(usually sandwiched between two Questionable paragraphs
in an attempt to distract you, cleaver huh?), that they are now legally allowed to PRICE
GOUGE YOU!!
Take all documents to Your attorney BEFORE SIGNING
ANYTHING.
Bottom line, Don't pay the fees, you have the right
to refuse to pay for something you never agreed to.
You will not be punished, fined, lose any deposit money
or lose the home of your dreams, in fact your attorney
may be able to pursue them for
"duress/anguish"... if they attempt to
intimidate/manipulate you into agreeing to pay these
fees.
It's YOUR MONEY, keep it!
You will be amazed how easy it is to have
all these fees
removed! When you find these hidden fees, and your
attorney cannot be reached for review and council,
simply strike out the disagreement, initial and date
next to or near the strike, example;
"Buyer will be charged a Broker compliance fee of
$495." to; "Buyer will be charged a Broker compliance fee of $495."
initial and date!
If your agent is truly acting in your best
interest (due-diligence), they will not disagree.
If they disagree... find another agent!
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