Shop around

Several weeks ago, a reader asked you why real estate sales commissions didn't seem to be negotiable since most local agents charge the same rate. That's what I thought too when I was shopping for a realty agent to sell my home last year.

Then I met an agent who said she is an independent broker who pays a desk fee, plus expenses. That way, she told me, she can charge whatever commission schedule she wants. She listed my house with a 4-percent commission if she sold the house without a buyer's agent involvement but with a 5-percent commission if the buyer had their own agent.

The offer I accepted involved a buyer's agent who got 3 percent of the commission, and my listing agent took 2 percent. Everyone was happy. I estimate I saved about $11,000 commission and got great full service.

I suggest home sellers shop around and look for independent agents who aren't tied into fixed corporate sales commission structures. Of course, I checked out my agent's references of previous sellers, and they were excellent. -- Rupert A.

DEAR RUPERT: Thank you for sharing your successful experience with an independent realty agent who was flexible on her sales commission. I received several similar letters like yours from sellers who received full service but at negotiated commission rates, which were less than competitors.

Up-front mortgage refinance fees can rip off buyers

DEAR BOB: I recently had a very negative experience when I applied for a home loan refinance. I was charged an up-front fee of $750. After I reviewed the mortgage's closing costs, around $2,000, I refused to take the loan. Then I was told the $750 is nonrefundable. Is this legal? Now I am reconsidering the loan to avoid losing that $750. Who regulates banks that make home loans? -- Juan P.

DEAR JUAN: That $750 up-front loan application fee is outrageously high. I admire you for refusing to accept the loan that had closing costs you weren't expecting. Were they disclosed to you on the lender's "good faith estimate," which you were given shortly after applying for the mortgage?

If not, you were within your rights to refuse the loan and to get your $750 refunded. If necessary, don't hesitate to take that nasty lender to local small claims court for a refund. National banks are regulated by the U.S. Comptroller of the Currency where you should file a complaint against that lender.

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Send questions to Robert Bruss, 251 Park Road, Burlingame, CA 94010 or www.bobbruss.com.