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Required Reading List for Buying Foreclosures!
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A simple, yet powerful and proven
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Seized real estate market
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What You Don't Know About The Real Estate Process, Some Inside Secrets
By Suzie Shannon
Some people in the real estate industry have a terrible reputation. Why, because
they deserve it. A lot of hard earned money trades hands and if things go wrong
that leaves a very bitter taste in the injured parties mouths.
In real estate most people stay in the house for a long time. If they don't,
many times they sell the house themselves or quite often deal with different
professionals the next time around. This doesn't always mean they were dissatisfied
the first time. Sometimes a new agent sells him or herself. Believe it or not
sometimes the property will be listed and a seller and buyer meet. Then when
the listing expires, guess what.
The mortgage company is usually the one that profits most from the transaction.
Sometimes the seller makes a pretty nice profit. In my opinion agents and brokers
usually make too much money for the service they are supposed to provide. For
example a broker can make $18,000 or more on a $300,000 house which is no more
work, in fact usually it is less work than a $50,000 property. The other professionals,
excluding the mortgage company, charge a very small set fee. An appraiser only
gets $300 to $400 which is regulated by VA (for VA loans) and the market. The
attorneys, surveyors and inspectors get even less. If they charge more, most
agents will use someone else.
Two things are collected up front at the mortgage company. An appraisal fee
and credit report fee. Many times the purchaser has been overcharged for these
fees. Always check your settlement statement. They are also told that the appraiser
has to be paid up front when the truth is, many times the appraiser isn't paid
for several months.
Last year it was brought to my attention by some refinancers that their loans
had been delayed because the lender didn't have the appraisal. I told them
they did have the appraisal. Then the homeowners contacted me and told me that
after four months of not closing, the officer left the company, went somewhere
else and wrote a letter of apology. He stated that the manager had instructed
him to stall the loan in anticipation of a rate incease.
Suzie is a licensed real estate broker and certified residential appraiser
with 20 years experience. Other professionals have contributed as well. http://www.freewebs.com/realestatenews
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