Frisco Texas Mortgage, Real Estate, Events, and more

My hand is not in your pocket, so dont reach in mine.

This post is not meant for the consumer. My feeling is that you have all the right to ask me how much money I am making and you are VERY free to compare it with other companies.

My comment "KEEP YOUR HANDS OUT OF MY POCKET" is meant for a Real Estate Agent I recently worked with. To avoid any conflicts, I did not want to post it during the transaction.

Im a big believer in a Real Estate Agent being involved with the transaction. Its my job to keep them (and our client) informed of the transaction with updates throughout the process. But, I do not feel you should question the amount of money I am making after our client has already SHOPPED the loan.

Let me bring you up to speed and tell you what I am talking about....

I received a call from a client that was working with another Lender but did not feel confident in their ability (returning calls, confusion, incorrect documents). They were now almost 30 days away from the closing and needed to make a decision.

After a bit of conversation with the client, and emails back and forth, the client decided to move forward with me.

I introduced myself to both Realtors and received a call from the buyers agent within 24 hours. They were questioning some of the fees on the GFE and asked that I remove almost $400. First of all... that amount is discussed with the client (all figures are disclosed, including the amount of money we make for processing the transaction). The client then had the opportunity to compare my quote with other companies. So, as far as I am concerned, its no longer an issue. End of story. So, why are you calling me about this now... 

My feeling is this... the client is able to shop around to compare my costs/rate with others. As a matter of fact, I typically will tell them to compare so they feel confident in what I am offering. They were happy with what we discussed.

Keep in mind... I am not the cheapest guy in Texas, nor am I the most expensive (I'm sure you are not the cheapest Realtor in the area either). We charge what we feel in reasonable for our services. The client can certainly choose to go with someone that is cheaper and possibly risk not being able to reach the LO with questions... or not closing on time... or not getting approved at all ** which was the case with the other LO **

Im not saying that all other LOs drop the ball or lack in communication, but I am saying that I do not have that problem. So, before you call me about a $400 difference between my quote and someone else's quote, think about the risks. Is that a good risk to take for less than $400? I would think not. I'm thinking you will be happy with ongoing updates, being able to reach me in the evenings and weekends, and ultimately having a happy (stress free) client.

** note, I was not making 3% on the transaction. We were talking about just under $400 on a $285K purchase **

 

When the client called me, I didnt tell him that he could get 'Discount Realtor" to help him for only 1.5% commission or a flat fee of $495. They picked you for a reason, just like they choose me. Clearly the client did some research on loan products and spoke to a few loan officers. They felt comfortable with me and what I brought to the transaction (knowledge, availability, and a good track record).

If you want to call me with questions, GREAT! Give me a call any time... but don't call to reach in my pocket. You have your costs and I have mine.

 

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The views expressed on this site are mine alone and do not reflect the views of my employer.

Comment balloon 62 commentsJohn Cannata • October 19 2010 11:30AM

Comments

Ops John..... I was cracking my head, going over and over the transactions we did together. I doubt it's me. I hope NOT!

Posted by Loreena and Michael Yeo, Real Estate Agents (3:16 team REALTY ~ Locally-owned Frisco TX Real Estate Co.) about 8 years ago

Good point - I never think about the mortgage lender being questioned by the real estate agent.  We're just so used to it happening to us . . .

Posted by Margaret Goss, Chicago's North Shore & Winnetka Real Estate (Baird & Warner Real Estate) about 8 years ago

John,

Good post.. and I can understand your frustration. The only time I get involved is when the buyer has a question and doesn't feel "comfy" or confident to ask a simple question about the fees. I don't expect any loan officer to make more than the Realtor.. that's just my opinion.

Posted by Greg Nino, Houston, Texas (RE/MAX Compass, formerly RE/MAX WHP) about 8 years ago

John.. excellent post and excellent point.  If a realtor brings this to my attention, the first thing I say is... "you can't compare what someone puts on a sheet anymore, unless you know all the pricing adjustments.  If they are going with a conventional mortgage with 10% down, having a 679 credit score, .. sorry, there will be a 1.75 point penalty either in points, fees, or rate..."  Overall, you make an excellent point.. if the borrower themselves did the shopping and feel comfortable, end of story. And yes, I will never be the cheapest, nor will I be the most expensive. The problem, a lot of this can change once the buyer goes with a lender... people are fooled by the new laws and guidelines that are protecting the borrower, but there are still many loop holes with this... so you just can't compare fees... no way. Again, good post and stay tuned for a post on this tomorrow... since you just sparked my mind on something, between this and what I read about when people can lock in.

jeff belonger

Posted by Jeff Belonger, The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans ( Social Media - Infinity Home Mortgage Company, Inc) about 8 years ago

I am sorry that you had that unfortunate experience.  I prefer to stick to what I know and I would not dream of telling the lender what to charge for their services.  Good luck to you!

Posted by Karen Feltman, Relocation Specialist in Cedar Rapids, Iowa (Cedar Rapids/Iowa City, IA KW Legacy Group) about 8 years ago

I can underestand your frustration with this especially since the buyer shopped around. I'm curious, did the agent suggest to the buyer also that you were charging too much?

 

Posted by Barb Szabo, CRS, E-pro Realtor, Cleveland Ohio Homes (RE/MAX Trinity Brecksville Ohio) about 8 years ago

It really bothers me when people like buyers and lender suggest that I kick in my Commission just to cover fees people should have be aware of in the first place. So I know it has to be the same for you.

Posted by Victor T. Gurrola, Diamond Bar Real Estate Professional (Remax Realty 100) about 8 years ago

It really bothers me when people like buyers and lender suggest that I kick in my Commission just to cover fees people should have be aware of in the first place. So I know it has to be the same for you.

Posted by Victor T. Gurrola, Diamond Bar Real Estate Professional (Remax Realty 100) about 8 years ago

It really bothers me when people like buyers and lender suggest that I kick in my Commission just to cover fees people should have be aware of in the first place. So I know it has to be the same for you.

Posted by Victor T. Gurrola, Diamond Bar Real Estate Professional (Remax Realty 100) about 8 years ago

I understand completely.  In fact recently during negotiations a listing agent called me to ask if we could "just cut the commission by X to 'make the deal' "  I let him know immediately he could cut his listing side all he wanted, but what was stated in the MLS would be what the seller owed me at closing.

Posted by Tammy Lankford,, Broker GA Lake Sinclair/Eatonton/Milledgeville (Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668) about 8 years ago

That's a catchy phrase and yet so true...good post.

Posted by Mahesh Mike Patel, Call Me And Consider It Done! (First Team Real Estate) about 8 years ago

Loreena - I would never post a problem that you and I had. We would talk about it, but you wouldnt see it here unless it was a learning opportunity I could share with other Realtors and LOs. We are good to go. :-)

Greg - Absolutely! There are very rare cases where a LO will make more than an Agent. The only time you may come close is when its a small purchase (but not always). Most of the time, the LO makes about half. Again, depends on the loan amount and the LO. As for the questions, I welcome them ALL. Im not trying to hide anything. We fully disclose all of the money that we make on a transaction. I agree that the buyers sometimes do have questions and they discuss them with the agent, who then calls us for an update. In this example, it was more the way they approached me about the fee.

Jeff - Blog away my friend. I'll be watching for it.

Thanks Karen. Most agents do stay out of it, or they ask questions about the fees to assist the buyer. I fully support that!

Barb (happy birthday!) - The buyer did share the quotes with the agent and then told her they chose me. That does not mean that all the questions stop, I get that. For this situation, it was more the approach the agent had about this fee. I cant always compete the the lowest guy/gal because there are some LOs that will do it for next to nothing. Well, in order for me to provide quality service, that means I may not be able to close 40 deals a month (although that number would be nice). Instead I will close slightly less, but I am also providing the service that my competitor is not.

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 http://TexasLoanGuy.com) about 8 years ago

John,

I agree with you 100%.  It is not our place to question your business practices (as long as they are legal and ethical) or what you charge for your services just as it is not your place to question ours.  Let us all work together to provide the best service possible and be worthy of whatever amount we charge.  

Example: I have no problem paying more for better food and service at one restaurant over another.  And, in fact, I am super happy to give a higher tip for outstanding service and will seek out the server who provides that level of service when I come back... there is "price" and then there is "value"... I am happy to pay more for more value!

Tim

Posted by Tim Fennell, Jacksonville Real Estate (The Legends of Real Estate, REALTORS®) about 8 years ago

John,

You're getting me fired up here!! Cuz I hate that!  Especially since your clients found you on their own, shopped you, and were comfortable.  I've had that happen to me twice this year.  Your last paragraph really drove home the point.

I would be interested to see your answer to Barb's question above, on whether the agent made a comment to the buyers.

Great post.  Best of luck.

Posted by Kevin Kelly, Amerifirst Financial Inc. (Licensed Loan Originator) about 8 years ago

Agents are constantly being asked to justify their value, why shouldn't LO's.  That being said, it is not the agents job to question you it is the person who hired you.  I wonder if the agent asked their client before calling you.  Again, this is not the agents job and I agree completely.  Taking these kinds of calls out of our transactions will make them go smoother.  I was surprised to see Loreena in here so fast and worried, clearly she has worked with you and clearly she has asked you about fees.  As you point out later in this response tree she is professional.  A professional can always justify their price.  A buyer has a right to buy or go somewhere else. A weak person will always back pedal, I am glad you didn't.  Good for you.

Posted by Larry Lawfer, "I listen for a living." It's all about you. (YourStories Realty Group) about 8 years ago

Margaret - Sorry I missed you in my previous response. We do tend to get questioned more about our fees now, but thats also because we fully disclose the costs to the customer. So, we put it out there and of course they are going to ask more questions about it.

Victor - I can see when there is something unexpected that happens (which should not happen often), someone has to pay for it. Typically, it will be worked out between bth agents and the LO. The agents should never assume the lender will pick it up though, nor should the LO.

Tammy - Thats something the Listing Agent needs to disclose in the listing. I agree with you there that they can cut their fees if they would like, but it doesnt mean that everyone should cut there commission.

Thanks Makesh.

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 http://TexasLoanGuy.com) about 8 years ago

I had a lender this past spring tell our mutual client that it is "typical" for us (agents) to buy a home warranty at closing.  I was thinking "WTH dude, really"?  Maybe back in the day when we were selling 3,4,500K homes.  Today that is 10% out of our pocket!

At any rate, lender and title do their jobs and I do mine.  Consumers are smart enough to smell a rat if they see one and they need to negotiate with lender or title themselves.  I stay out of that business!

Posted by Renée Donohue~Home Photography, Western Michigan Real Estate Photographer (Savvy Home Pix) about 8 years ago

John,  Great post....this situation would certainly rile my red headed temper!!! LOL!! Perhaps the agent would have preferred working with an out of state internet lender to save that $400!!!!  Glad this was featured!!  And, I am looking forward to Jeff's post as well!

Posted by Deborah "Dee Dee" Garvin, C2 Financial (C2 Financial) about 8 years ago

Tim - Thats exactly correct. You dont pay the same prices at Taco Bell as you do at Mi Cocina. You'll pay more money for better food, service, and atmosphere.

Kevin - The agent did see the other quotes, but Im not positive they said something to the buyer directly. I assume they DID, but I have not proof of it. Either way, the buyer still chose to move forward with me. :-)

Larry - Loreena actually has nothing to worry about. We have worked together on several transactions. Im not her only lender though, so perhaps she questions someone else and was just trying to think if it was me. :-)  She is very professional. We do not have any "garbage fees" within our transactions, so I feel very confident about our fees and overall my commission. There are times where I have cut that fee down but for the most part I try and stay consistent. If Im consistent with everyone, then no one feels I am favoring someone else.

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 http://TexasLoanGuy.com) about 8 years ago

John - Been there, done that.  Just closed a similar transaction that you did (that's a whole other post).  The Realtor then wants me to waive certain fees because he had his in-house guy do that.  SO WHAT!!!  I'M NOT YOUR IN-HOUSE LACKEY GUY!!!

The buyer picked me for a reason and if the buyer has a problem with our arrangement, then the buyer and I will discuss it with no concern for you or what you have your in-house guy do!

Posted by Donne Knudsen, CalState Realty Services (Los Angeles & Ventura Counties in CA) about 8 years ago

Renee - LOL I dont thnk I have ever told the client about a 'gift' the agent gives. I work with an agent that ALWAYS provides the same gift to each buyer... but I still don't share that with the buyers. What if the one time I mention it, the agent no longer provided that gift? That would be embarrassing for all of us. As you said... I do what I do, and you do what you do. :-)

Deborah - That is so true. You can save a few hundred dollars and gamble with YOUR check... but if I were an agent, I wouldnt make that gamble.

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 http://TexasLoanGuy.com) about 8 years ago

They were questioning some of the fees on the GFE and asked that I remove almost $400.

Ouch!  I'm glad you got this one closed.

Posted by Bruce Brockmeier, Coached By Crouch (Internet Marketing Consultant to REALTORS®) about 8 years ago

No matter how you look at it, someone in the transaction wants the agent, lender or title company to kick in some money to get the transaction closed. Been there, done that.

Posted by Ed Pichette, RE/MAX South Shore Realty (RE/MAX South Shore Realty) about 8 years ago

If a buyer can afford a $285,000 home most likely they have enough business sense to ask questions and make a good decision. I never try to separate my client from the LO they have chosen. I do try to guide them in their choice and the big deal is making sure that the LO and their company can close the deal and provide timely communication. If the underwriter is in CA, the processor in FL and you're sitting in TX with no way to effectively communicate with them, things are going to go badly in my opinion. Sounds like you are on top of your game and know how to follow up and follow through. Also sounds like the agent has been fishing but everything that they caught has broken the line. But hey, that's my opinion. Keep up the good work. Can I have a dollar?  : )

Posted by Randy Elgin, Sells Affordable Homes for sale in the San Antonio (Keller Williams, San Antonio, Helotes, Leon Valley) about 8 years ago

@Larry - I do watch over my client's transaction, GFE included because (not John's) I've seen a huge difference in fees. Just like I tell my clients, there are not obligated to use my preferred vendors, but there's a reason they come mine.

@John - Right now, you are! It's hard to get on my list and once you are on, it's not that easy to get off. But if you make my client feel they've been shuffled away because they cannot buy now, close the book on them, I'll close the book on the lender/ vendor pretty quick. FYI: One just got booted out and you're sitting very solid right now.

By the way, Michael and I are planning a solid year for 2011. You're definitely joining the party!!!

Posted by Loreena and Michael Yeo, Real Estate Agents (3:16 team REALTY ~ Locally-owned Frisco TX Real Estate Co.) about 8 years ago

I think this is what good faith's are for and also if your providing top notch service we should understand the value since we argue that all the time.

Posted by Chuck Carstensen, Minnesota Real Estate Expert (RE/MAX Results) about 8 years ago

John, it sounds like someone had a lot of nerve. Glad you put your foot down.

Posted by William James Walton Sr., Greater Waterbury Real Estate (WEICHERT, REALTORS® - Briotti Group) about 8 years ago

John - Having worked with you on deals, including one which required more communication than normal, I can certainly vouch for your communication skills and the fact that you're good at what you do.  Sorry you had to endure this, which is supremely irritating. 

To prove that great minds think alike, here's a post I wrote back in 2008 (note the title):  Get Your Hand Out of my Pocket! - Handling Commission Beggars

Posted by Jason Crouch, Broker - Austin Texas Real Estate (512-796-7653) (Austin Texas Homes, LLC) about 8 years ago

I recommend excellent vendors (lenders, stagers, inspectors & attorneys) who have proven themselves to me by offering good value, good service, and excellent communication with the Realtor.  I know what these people charge, and feel comfortable that they are providing good value for the services they offer.

I am not in the business of quoting their fee for service (as I'd hope they wouldn't quote mine), and stay out of that end of things.  I would never think to contact any of them to tell them they're charging too much.  If my client wasn't comfortable with their fees, they wouldn't have agree to use them.  I don't pressure my clients to use vendors in my stable.

Posted by Alan May, Helping you find your way home. (Coldwell Banker Residential) about 8 years ago

Yep ...welcome to our world... we as real estate agents are asked to reduce our commissions almost every time we are presenting our services... and guess what... it is not just the clients... its also the banks and the lenders that want us to take less (and especially if its a short sale or foreclosure) ... and as you pointed out, everyone has their costs of doing business... and therefore shouldn't begrudge another professional their fair fee... I wouldn't...

Posted by Phyllis Lerner call 914.438.7556, William Raveis Legends Realty Group (William Raveis Legends Realty Group LLC) about 8 years ago

Great article John!  I can almost hear myself responding to the agent asking me to remove $400 worth of fees and saying "do you want this deal to close"? and "why are you concerned about this"?  "Does it impact your abililty to perform"?  Agents and buyers need to know that we LO's like to eat and sleep indoors too!

Posted by Ed Gillespie about 8 years ago

Since we all took such a huge pay cut in 2007 when the market tanked, it is even harder to make decisions about when to reach into our pockets for our clients.

Posted by Melissa Zavala, Broker, Escondido Real Estate, San Diego County (Broadpoint Properties) about 8 years ago

We need to remember we are all part of the same endeavor with the same goal. Great post written like a true professional...

Posted by Paul S. Henderson, REALTOR®,CRS,, Tacoma Washington Agent/Broker & Market Authority! (RE/MAX Northwest.) about 8 years ago

I have had clients ask about lender fees on occasion. I tell them to ask the lender directly. I work with a preferred lender in whom I have a great deal of confidence. I know that he is not overcharging our clients. If he were, obviously, he would get no more business from our team. At the same time, I do not micro-manage other lenders with whom my clients might have established a relationship.

Posted by John Juarez, ePRO, SRES, GRI, PMN (The Medford Real Estate Team) about 8 years ago

Great post. I will admit that when I am working with a new mortgage person, I will question fees that I don't normally see, like I did today with a lender my buyers are working with. It turned out she was quoting Dallas fees and had no clue fees in Austin would be different, so she appreicated me questioning her, but I usually leave the questions up to the buyer...

Posted by Donna Harris, Realtor,Mediator,Ombudsman,Property Tax Arbitrator (Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com) about 8 years ago

Great post, John.  It was probably the same agent who claimed they were worth so much more because they offered so much more than an agent who discounted fees.  Seems like a double standard, right?

Posted by Laurie Jarrett, REALTOR - New Braunfels, San Marcos, Texas Real Es (Keller Williams Realty Heritage-New Braunfels) about 8 years ago

I always try to stay out of the middle of transactions the buyer has with inspector, attorney, lender etc.

While I do recommend people, I do not quote their rates. That is not my place.

I tell them the fees are between them, I do not know what they charge, and that they need to check that out on their own.

Posted by Donna Galinsky, Make Lake Norman Your Home! (Allen Tate Company) about 8 years ago

I've had mortgage people tell clients that they have a better agent that they should work with. It's usually a buddy or a relative. On the other hand, I've suggested that clients use one of my mortgage people to get a second opinion. Not to steal them away, but just to make sure that the person they're using is legit. If I've worked with the mortgage pro before, then it's all good. I don't tell mortgage people what their job is, they don't tell me what mine is. Seems to work pretty good this way.

Posted by Eric Michael, Metro Detroit Real Estate Professional 734.564.1519 (Remerica Integrity, Realtors®, Northville, MI) about 8 years ago

John:

I completely disagree with you, but I can understand your position. I always review HUDs with my clients, and I always point out fees that I think are too high. It is ultimately the clients' call on whether they want to talk to the lender about it.

Posted by Aaron Vaughn | Builder | Investor, If the deal makes sense, the cash will follow. (Conifer Homes) about 8 years ago

part of my job is to help my client negotiate the best deal he can on his purchase. I often ask mortgage companies,  title companies, inspection companies, listing brokers and others to sharpen their pencils and give us the best price that they can. By the way i dont ask for anything im not willing to do myself. My commission is always open for negotiation

If you cant or wont reduce your fee, just say so. No need to be offended, and by the way my hand is not in your pocket when I ask....like me, its not your money until the deal closes

Posted by Ron Parise (LocateHomes.com) about 8 years ago

I learned the hard way to make sure you have good people to refer clients to.  I also look at the GFE.  And I will make a call if there is something on there that I didn't anticipate but I never suggest that someone should cut their fee.  Since the buyer has already agreed to pay it, it doesn't concern me.

Posted by Tammie White, Broker, Franklin TN Homes for Sale (Franklin Homes Realty LLC) about 8 years ago

I agree...let buyers shop around. They have piece of mind that way.  However, don't let it get to you.  If there is an explanation for different fees, clear up the ambiguity.  Smart people ask questions and shop rates with lenders, Realtors, or any other service provider.

Allan

Posted by Allan Sanchez, Rocklin & Roseville, Short Sale Agent (Roseville CA & Rocklin CA Short Sale Agent) about 8 years ago

John, as an ex-loan officer, I totally understand your position. There is nothing wrong with an agent assisting their buyer and having a professional conversation with a loan officer it something seems way out of line. Sometimes I find that agents seem to quickly rush to judgment about a loan officer without giving them the benefit of the doubt. At this point unless my buyer asks for my help, I stay out of the loan process. 14 years in the mortgage business was enough for me.  

Posted by Dan and Amy Schuman, Luxury Home Specialists (Howard Hanna Real Estate Services) about 8 years ago

Donne - If the 'in house' lender was so good, why did the client not pick them? On top of that, why did the agent not insist at the beginning that the client use them? There is obviously something lacking from the inhouse lender.

Thanks Bruce.

Ed - Its never ending. I can see negotiating to make a deal work.. sometimes you have to do that, but this was not the case here.

Randy - That was my feeling too.

Loreena - I look forward to it. And let me know if you would like me to schedule some time with your clients.

Chuck - Completely agree. If you have the sevice to back it up, then you can not expect to get the cheapest price.

Thanks William.

 

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 http://TexasLoanGuy.com) about 8 years ago

Hi John,  I understand you being upset with this.  I know you do a good job and are worth every penny.  Not all LO's are and those I will question and bargain with for my client.

Posted by Ricki Eichler McCallum, Broker,GRI,ABR, - Your Coastal Bend Home Source (CastNet Realty) about 8 years ago

John, very good points in a well written post! I like to gently assist my buyers but send them to pros like you that truly understand ALL aspects of the lending process!

Posted by Russell Lewis, Broker,CLHMS,GRI (Realty Austin, Austin Texas Real Estate) about 8 years ago

Jason - Thanks for the kind words. Great title for your post. Maybe I stole it.... but you have no proof of that.

Alan - As long as we are doing our job and also not charging a ridiculous amount of fees, then the customer will be happy.

Phyllis - Foreclosures are tough because the lenders will only wiggle so much. In those cases, you sometimes need to negotiate to make the deal work. As long as I dont go in the hole, I do my best to eat the costs myself.

Ed - Sometimes we need to defend the charges that are listed. I totally understand that. But after we have talked with the client, and they have seen more than just ONE GFE, I do not see why a Realtor is calling to argue the fee. Consult your client if you would like, but ultimately they have already made the decision.

Melissa - Thats really what it comes down to. How much money am I willing NOT to make on the transaction. No matter how much money I made in a previous year, I try to stick to the same fees to be fair. Plus, I feel the service we provide warrants the charges we have.

Thanks Paul.

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 http://TexasLoanGuy.com) about 8 years ago

John - Thats the key is to surround yourself with a lender you can trust. Doesnt always work out because the client can still choose to work with someone else, but its a good start. If they choose to pay more fees or less fees, its the clients choice as long as they were educated about the costs of the entire loan process.

Donna H - Seeing as I am licensed in Texas .. why didnt you use me??  I wonder what fee you are talking about that is charged in Dallas but not in Austin? Was it some sort of Title Charge or something? Just curious because I do not recall a fee I have added that needed to be removed when I close loan in and around Austin.

Laurie - Thats whats funny. As a Realtor, if you want someone to take care of your client, you cant shop for the very lowest deal because you could end up a very rough transaction. It doesnt always work that way, but the percentage is certainly increased when you head in that direction.

Donna G - Everyone has a job to do. I agree to make sure I am not taking advantage of the client, but don't squabble over $395.

Eric - I have agents that I recommend as well, but never after the client has already started working with an agent. Certainly I am not trying to create waves for the agent. Now, if the agent is not doing their job, I'll certainly talk with the clients but it takes a lot for that to happen. Usually the client will just complain to me about them and I'll do my best to reach the agent myself.

Aaron - I honestly thought I would have more disagree with me, but you are the first I think. Based on your comment, I actually think we still agree with each other. A Realtor should review the numbers with the client because there may be questions they feel confortable asking the agent. After all, the agent has been with them for possibly 2-6 months before I came along. There is a trust they have already built up that may be stronger than what I have built up so far. But in this particular transaction, you are talking about a $395 fee, not an extra 1% charge. The client already compared my charges and rate with others. I'll even go as far as saying 'if the Realtor wants to see if they can work a better deal, fine'. But her approach I could do without. And ultimately, if I am saying 'here are my fees', then its the clients choice to accept it or go to another lender. Again, assuming I am not charging way over and above, which I do not. Thanks for the comment and honestly.

Ron  - Thats a good point. I think a lot is in your approach to the subject. As I mentioned, I dont claim to be the cheapest lender, but I am far from the 'pricey lender'. Ultimately, you get what you pay for. As a matter of fact, you can sometimes pay too much for a lender and STILL not get the service levels you deserve. So, I guess I should not just point my finger to the 'low guy/gal'.

Thanks Tammie. You should feel comfortable calling the lender with questions.

Good point Allen S.

Dan & Amy - I agree with you there that sometimes they will judge, but its not always the case. I have found that the agent that does judge has either just dealt with a really bad transaction or is looking for a reason to say 'This is why we should use my in-house lender'. Most are pretty good even if this is our first transaction together.

Thank you Ricki. Very kind.

I appreciate the comment Russell. As long as you surround yourself with solid professionals that get the job done at a reasonable price, then I think the entire process will be a great one for your client. Thats ultimately the goal, right?

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 http://TexasLoanGuy.com) about 8 years ago

I feel your pain. I stay out of what the lender charges his client. That's not for me to judge.

Posted by Lizette Fitzpatrick, Lizette Realty, Lexington KY MLS - Kentucky Homes (Lizette Realty - Richmond KY) about 8 years ago

John I would never think of do such a thing.  I stick to the real estate end and work with lenders I can truly recommend to my clients.

Posted by Jennifer Fivelsdal, Mid Hudson Valley real estate connection ( JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571) about 8 years ago

Just be glad that the buyer didn't ask you for a rebate, or for some of your commission back at closing.  I know that this request came from the agent though, but it sounds like you handled it very professionally.

Posted by Tamara Inzunza, Close-In Alexandria and Arlington Living (RE/MAX Executives) about 8 years ago

John, congrats on the feature!  Seems like when I have gotten a feature...it has been from writing about some pain in the tush experience. So, there is always something good coming out of something difficult. :) 

Posted by Sonja Patterson, Texas Monthly 5-Star Realtor Recipient for the Hou (Keller Williams - BV) about 8 years ago

My husband is a mortgage broker and I am in total agreement with you.  I am a realtor, not a mortgage broker and unless I have valid reasons to believe that my client has selected an unsavory soul, your fees are none of my damn business any more than my commission is any of yours.  You are entitled to be paid your fees, your client agreed to them and I have no business getting involved. 

Posted by Marnie Matarese, Showing you the best of Sarasota! (DWELL REAL ESTATE) about 8 years ago

I COMPLETELY AGREE with your line of thinking! You are entitled to be paid without needing to be put under a microscope by your buyer

Posted by Ryan Case, 877-828-0710 (SCA Real Estate) about 8 years ago

Yes, unfortunately lots of people are reaching in our pockets these days.  Would that they know that those pockets have also been depleted by a sluggish market, smaller commissions, and fees, more fees!

Posted by Tni LeBlanc, Realtor®, J.D., Tenacious Tni (805) 878-9879 (Mint Properties, Lic. #01871795) about 8 years ago

What a go John. I stick to what I do best which is the real estate part and negotiate my deal, and I let the mortgage broker stick to what he/she does best, and negotiate his/her own deal.

Posted by Richard Bazinet /MBA, CRS, ABR, Phoenix Scottsdale. Sellers, Buyers & Relocations (AZuRE Team - Realty ONE Group) about 8 years ago

John,

this is an interesting comment. I do understand where you are coming from. I would be very upset if a lender tried to steer my client from me. However I do believe that because we have an agency relationship with our clients we should (actually, we must) advise them regarding all aspects of the transaction. We know what are the customary rates and fees in the area we work on. What should we do if we see a lender charging abusive prices? (not implying that you are doing it) Aren't we obligated to discuss that with our client?

I don't have an answer. Just wanted to ask the question out in the open.

Posted by Jose Dias, Sell Your Home in Scottsdale-Phoenix-Peoria-Glendale-Goodyear (Home Sellers Help in Scottsdale-Phoenix-Peoria-Glendale) about 8 years ago

Ouch!  Sounds like someone really offended you. 

But you have to remember that an agent who doesn't know you still has the obligation to look out for his/her clients, and asking you about your fees and whether you will consider waiving any could be motivated by that obligation.  I'm guessing he caught you on a bad day or at a bad time, because we ALL have been asked questions like this, and it's not always motivated by greed. 

Posted by Margaret Woda, Maryland Real Estate & Military Relocation (Long & Foster Real Estate, Inc.) about 8 years ago

I always look at the GFE for my client ... I've seen some pretty outlandish things on there. But the issues need to be brought up early in the process, not at closing. From an agent's perspective, I tell them they should shop around, but I also refer them to loan officers whom I know have great rates and terms, never lie and rarely fall out.

Posted by Brian Bean, Homeowner Advocate, Dream Big Real Estate, S.Calif (The Dream Big Team at Realty ONE Group Champions) about 8 years ago

Just out of curiosity, if this post isn't meant for the consumer, how come you didn't post it as Member's Only?  Just wondering...sometimes I would on something like this and sometimes I wouldn't...

Posted by Bob Haywood, BobHaywood.com (McGraw Realtors) about 8 years ago

John - Congrats on the feature!  I always look at my clients GFE, but I would never call the loan officer telling them to remove some of their fees. 

Posted by Michelle Gibson, REALTOR (Hansen Real Estate Group Inc. ) about 8 years ago

If my client asks me to look at a GFE, I will.  I will tell them if the numbers seem off from the norm significantly, but I'm generally more interested in how capable the MLO is.

Posted by Christine Donovan, Broker/Attorney 714-319-9751 DRE01267479 - Costa M (Donovan Blatt Realty) almost 8 years ago

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