• FairClosingCosts.com Launches in May

    October 12, 2009

    Posted in: Real Estate

    PALMDALE, CA - FEBRUARY 25:  Real estate broke...
    Image by Getty Images via Daylife

    Inman News reports that a new website, FairClosingCosts.com, will launch in May. The site aims to allow home buyers to shop independently for providers of their closing services. The site won’t sell your information to vendors; instead, it will act as an “online Rolodex” allowing visitors to research and find contact information for vendors.
    Most buyers go as far as choosing a real estate agent, lender, home inspector, closing attorney, and insurance agent. They then allow those service providers to choose the rest of their service providers.
    In a best case scenario, everyone is looking out for the buyer’s interests, and selecting high quality service providers with fair and competitive pricing. In reality, buyers are often unaware of exactly who is doing what for them. This encourages vendors to form cozy business relationships of the “you scratch my back and I’ll scratch yours ” variety that serve the vendors more than their clients. There is a law that governs these “third party” vendor relationships – how vendors should disclose their relationships to clients, and whether vendors can pay each other for referrals (see RESPA).
    It looks like FairClosingCosts.com wants to take it one step further, essentially allowing buyers to cut out the middle man, or at least check prices and keep them honest. I think most service providers are up front about these things anyway, but adding more transparency to the process can only help to avoid any miscommunication and cut down on abuse of the system.
    Here’s a quiz. When you bought your last home, which of these services did you shop for, price, and hire yourself?

    • Real estate agent
    • Lender
    • Appraiser
    • Insurance agent
    • Home inspector
    • Home warranty provider
    • Notary public
    • Surveyor
    • Attorney/settlement company/ title examination
    • Title insurance company
    • Wood infestation (termite) inspector
    • Septic inspection
    • Well water inspection
    Reblog this post [with Zemanta]
  • Comments are closed.