Who do you think stands to have the highest likelihood of losses per transaction( typical) for the fees charged- and do the fees vs liability represent a fair amount for that liability that is on the parties being paid the fees they are charging?
I am not real clear as to exactly how much each payee receives- but typically the real estate company gets 6-7 %, which in todays market is (avg sale=$200-500K)=$12,000-30,000- the lenders take the points and the lifetime interest, the brokers get about $3000-7000 for their efforts- appraisals-$300-400, the atty/settlement companies about $500-1000(they have the TI split in there too) and the title abstractors/examiners about $75-150.
All of the above have built in inflation factors except the appraisal and the title searchers- , which in my opinion should shift to a percentage just like all the others, so as to keep up with current economic pressures that are ever present- maybe we should have a 1% fee for everything- (probably closer to 0.08% for a $300k sale) it would make things a lot easier than haggling with every VM when the phone call comes in to do something they need.
Steve Meinecke
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