Up front fees in the real estate biz?
What the heck?
I have been running across more and more stories about buyers/borrowers being charged upfront for services.
I can’t believe people get away with it.
Recently, I had a question from someone wanting to get preapproved for a loan…. she even found a house already…. and the loan officer she contacted first asked her for $15 to pull credit. Now, let’s forget that that is probably not the ‘actual’ cost….. which is all that should be charged. But UPFRONT? No, I am sorry…. I cannot hold my opinion back. No fee should ever be charged upfront. One exception ,might be for an appraisal when it is ordered. I do try to get my borrowers to pay for it at the door…. I have been stuck with that fee before.
I see application fees all of the time. $100 - $500 and people actualy pay it.
I even saw where one realtor asked for a $100 retainer from a buyer before he would go show houses.
I eat a couple of credit reports per month. And it costs me money to run a file thru Fannie Mae for approval…. I even eat a few of them too. But I will never ask my client for money upfront. And I will certainly share that information with anyone who will listen.
Is this just part of the changes in this industry? With the discount brokers and internet business?
I embrace technology and change. But some things should remain the same.