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Old 06-19-2006, 08:00 PM
JamesInOhio JamesInOhio is offline
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Appropriate Broker/LO fee

Please share how much you charge a client for the origination fee. Please include a gross amount and the split you get. I am a newbie and trying to get a rough idea of what is normal out there, so I don't go into an appt way low or way high. Thanks. James
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Old 06-19-2006, 09:49 PM
Thills Thills is offline
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Go in with what you are comfortable with. What is your time worth? You are the only one who can answer that...

Also, discussing pricing is illegal as I am sure Secret will stop by and let you know.
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Old 06-20-2006, 06:22 AM
JamesInOhio JamesInOhio is offline
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Holy cow, just talking about how you determine a fee is illegal? What's up with that? It's not like I wanna go out there and rip people off. Sad. Well if anyone wants to email me personally, feel free. I was just trying to get a rough idea how we should determine our cost of doing business. I was wondering why so many were looking at the post but didn't respond.
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Old 06-20-2006, 10:28 AM
Thills Thills is offline
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It has to do with the Sherman Anti-trust act and price fixing. Kinda silly on this level, however still technically illegal.

Take a look at what others are charging in your office and what your market will support. What I charge here in the NW might now work for you there.
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Old 06-20-2006, 11:06 AM
Secret! Secret! is offline
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Quote:
Originally Posted by Thills
It has to do with the Sherman Anti-trust act and price fixing. Kinda silly on this level, however still technically illegal.

Take a look at what others are charging in your office and what your market will support. What I charge here in the NW might now work for you there.
That's exactly 100% correct. 'Silly' and 'technically illegal' is what those that spend time in the big-house always say as well. It's been unlawful for more than 100 years, some of you learned all about it in business classes while in college, as it's a BIG deal at "any" level.

I know I've explained this before, but maybe not here -- when you guys have a casual non-binding friendly conversation about what you charge ... it influences everybody who reads it, that influence may tend to encourage them to charge a bit more at their "level" TRANSLATE: sodimize the consumer possibly with egregious rates, fees & charges

Therefore please don't talk about pricing even in a round-about way --- ya never know who's reading and someday (when you've become the big-shot you strive to become) THAT DAY is when they might surprise you!

This is called friendly advise
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Old 06-20-2006, 11:51 AM
Aapexnetbranch.net Aapexnetbranch.net is offline
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Great response, Thills / experinced LO's can often predict files that are going to take lots of time and cause headaches and adjust their fees accordingly. I think one mistake rookies often make is setting fees lower because they think they are starting a stream of referrals. People will often imply they will send you biz if you take good care of them. I find referrals most often come from people out of the kindness of their heart, nothing to do with leverage.-This applies to recruiting also!
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Old 06-20-2006, 03:40 PM
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Very true.. There is nothing like having a painfull deal go sour and not even make hardly anything on it.
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