CNBC Exclusive: New Tool For Lower Escrow Fees
With the U.S. housing market slowing--consumers are starting to balk at some closing costs. They sometimes pay thousands of dollars in vague fees. In a CNBC exclusive on “Squawk Box”, Jane Wells discovered Lowerfees.com. The site launches today and hopes to create an open competitive place for real estate transaction fees.
Mike Kratzer who started the company, told Wells that site allows consumers--at no cost--to type in price of a home they are buying (and zip code). They then have access to vendors from everything to appraisal to title search to pest control.
The site lists the vendor fees and prices and home buyers can compares prices to the national average.
There’s also a 'name your own fees option' - kind of like Priceline.
So far more than 10,000 vendors have signed up. The company plans to be profitable by 2008.