Wake Up and Smell the Closing Costs
The Wulfs (“The Evolution of Getting Escrewed” by Carrie Wulf, July 31) must be spoiled brats. We just sold our house and bought another one and are extremely grateful for all the hard work that our real estate agent and escrow company put into making our dream happen.
Ms. Wulf, why did you accept an offer at a $55,000 loss? No one forced you to take that offer just two weeks after your house went on the market.
Who forced you to use an agent? Without a real estate agent, how would anyone know about your house being on the market? Multiple listings ensure that all agents know about your listing. Real Estate agents work very hard; ours had open houses every weekend until our house sold. I never realized how much work went into selling a home. She earned every penny of her commission.
Sure, it was a pain filling out all of the paperwork. But again, whenever we had questions, we called our agent or escrow officer; everyone was more than eager to help us. We also pre-qualified for a loan, thus completing much of the paperwork ahead of time.
Tell me, Ms. Wulf, do you have time to process all the paperwork, do it correctly and on time? Surely you don’t expect appraisers, pest control workers, title companies, etc., to do their jobs for free. You must live in a dream world and have no idea how much paperwork is involved in “real life.”
You were very fortunate to sell your house and find another one quickly. You’ve gone through the experience before and should have known what to expect.
I have no sympathy for malcontents such as you two who are obviously entitled to more than the rest of us. Next time sell your house on your own.
SUSAN BARRETT, Los Alamitos
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Carrie Wulf’s shortsightedness and naivete caused her to write a lamentation that does great disservice to thousands of hard-working and knowledgeable professionals in all phases of the real estate industry.
Her complaints are particularly hollow in that her transactions were completely optional. Anyone who sells their home in a buyer’s market just because they “get an itch to” shouldn’t be surprised to take a loss.
They then complain that their broker made a commission. A professional realtor receives no salary or wage for just showing up each day. A realtor must invest considerable time and expense to get licensed, maintain Board of Realtors and MLS membership, attend continuing education courses, maintain market awareness through review and caravans, negotiate the transaction, and then coordinate title, escrow, lending, property inspection, termite work and hand hold their client before they earn a dime and then only at the close of a successful transaction.
The writer then complains about the fact that she had to pay for her loan, escrow and closing costs. Yes, it does cost money to borrow money. Always has, always will. Yes, it does cost money to process all the paperwork required to transfer real estate legally from one party to another.
However, all of that work and expense is required to meet the countless federal, state and local rules and regulations that have primarily been put in place so that everyone in the transaction is treated fairly and everyone gets exactly what they bargained for.
This last concept is the most important of all. These people listed their house with a professional agent and got an agreeable price within two weeks, they bought another home with the help of this same agent, again at a price they agreed to, then applied for and received a new loan under terms and conditions they agreed to. She admitted that they received quick and efficient escrow and closing service. In summary, they got exactly what they bargained for.
Had they not wanted to undertake these expenses, they could have stayed in the “single family dump” (her words) in which they were living.
Her only complaint seems to be that they had to actually pay for the professional services that they bargained for and received.
Times readers interested in real estate issues would be much better served by articles explaining the complexities of the real estate transactional process. Ignorant whinings by an obvious cheapskate are of little value.
JIM TYNER, President, Independent Escrow Assn.
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It is easy to understand the Wulfs’ frustration in the sale of their home and the purchase of another. It can be, to many, a frightening venture. The simplest transaction would be for cash and, if the parties were prepared to complete it as soon as possible, it could be done in 24 hours. This without the interference of the lender, title company, termite man, homeowners associations, appraiser and the list can get even larger. Each one contributes to the confusion and cost, all ending up in that place called “escrow.”
We in the escrow business don’t seek out all of this outside intervention--the sellers and buyers instruct us to and tell us further that we cannot complete the transaction unless all of these entities have delivered to the escrow the results of their labor. Naturally there is going to be a billing enclosed, which again we are instructed to pay on behalf of our principals, the buyer and seller.
We hope that your next sale and purchase will be a more enjoyable with what you have learned, but please remember the decision is yours. Escrow has little to do but carry out your instructions and it’s not our intention to see you “escrewed.”
HENRY E. VAGT
President
Covina Escrow Co.
JUDY PASTOR
President
Inter-Pacific Escrow
KATHY BURNETT
Vice president, manager
Fortress Escrow Co.
LYNN E. SEMAIN
President
Western Region Escrow
JULIANA TU
Vice president, escrow manager
East West Federal Bank
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Thank you, Carrie Wulf, for writing “The Evolution of Getting Escrewed. . . .” I agree on everything you wrote. The only thing you left out was a solution to the problem.
I consider myself a professional real estate agent in its purest sense. The term professional is a misnomer when used in real estate. I base this on observing the majority of agents in today’s market. Our industry leaders and managers, as well as the agents themselves, really believe they are professional. The only ones being fooled are themselves. It is obvious that the general public regards us as fools, greedy, self-centered, uncaring, but definitely not professional.
We call ourselves professional but our actions prove us wrong. Low standards of commitment, selfish personal goals, reluctance or inability to accept change, no or little self-esteem, and many more negative behaviors are conduct the public witness and experience everyday!
DANIEL KOSTIUK, Sierra Madre
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As a member of the East Orange County Assn. of Realtors, Carrie Wulf’s comments, in the main, infuriated me.
Wulf says she “lost” $55,000. Was this an actual loss or a paper loss (based on sales prices five or six years ago)? If they actually sustained a cash loss over what they paid for their property and they could still afford to buy another home, then they are more fortunate than most young couples.
They sold their home in two weeks and she’s complaining? In this market? This tells me that her realtor did his job well.
The National Assn. of Realtors reports that on average realtors work a minimum of 60 hours per week and earn $35,000 a year. Agents are independent contractors and receive no benefits (health insurance, vacation, sick leave, etc.) When tax time rolls around we pay Social Security payments of 15% before we pay income taxes.
I suggest that should Wulf get the itch to sell her home in the future she should definitely do it herself.
AUDREY D. MICHAELS, Santa Ana. The writer is a realtor.
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I am appalled at Wulf’s ignorance. She presented such an inaccurate picture of the real estate industry. If she was trying to be funny, she wasn’t; she was insulting to all of those businesses that are associated with the real estate industry.
For her to criticize various entities involved in her sale and purchase over their fees is inappropriate. If she wanted an “estimated” closing statement, all she needed to do was ask.
And, of course, she doesn’t pay a 6% commission to her salesperson when purchasing a Liz Claiborne pastel suit--the store has already marked up the price by 50%! Come on, Wulf, let’s get with the program.
JACKIE PHILLIPS EDDS
Certified Senior Escrow Officer
Roadrunner Escrow Inc.
Palm Desert
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It’s amazing that in this day and age how naive, myopic, irresponsible and self-centered some people can be.
I trust that Wulf and her husband have jobs and receive compensation for their efforts. Realtors on the other hand get paid only when a home is closed. Ours is one of the few professions in which a service is rendered over and over again without a penny of compensation up front and no guarantee of any at any time.
We learn lessons from past experiences, Ms. Wulf. I hope that the next time you sell a home you do it yourself. In the meantime I wish you would refrain from making such reckless generalizations about an industry which you know so little about.
MICHAEL J. HEGEDUS
Gibson & Associates
Toluca Lake
The writer is a realtor.
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There are many hard-working individuals in the real estate industry, from the brokers to the escrow officers, home inspectors, loan representatives, appraisers and title personnel. I believe this lady would like for us all to say, “We are sorry, we are not worthy.”
By the way I notice everyone in the photo “is” smiling. I presume because they are happy in front of their new home.
JAMES EICHENBAUM
Owner
Onshore Properties
The writer is an appraiser.
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It is really amazing how smart we are until we get sued for something we knew nothing about:
--Some fellow 20 years ago did not pay a lien and somehow the party to whom he owed money saw a recording with a new name. New name, new suit.
--Or those nasty little termites are right through the new kitchen floor.
--Or Mr. Person who sold this property never owned the property and Mr. Person is gone, the Buyer’s have no home.
Oh, well, who needs an escrow agent, title insurance company, termite inspection and a real estate agent anyway? Well, Ms. Wulf, you do.
RUTHIE FURST
Vice president
Pacific Coast Escrow Corp.
Indian Wells
