Years ago, I was representing a seller on the sale of her home. It was customary, even required if I remember right, that on FHA loans, the seller had to pay the points. On this particular sale, mortgage rates were going up VERY fast. We are talking about the mid 1980's. The points on the buyer's loan started out at 1%, then went to 2%, then 3% finally ending up at 4 1/2%!!! POINTS!!!

There were very few buyers then and my seller really wanted the house sold, so she agreed to pay the points.

The one thing that I've never forget was when the seller asking me how much of the 4 1/2% was I getting?

Wow - that took me by surprise. I didn't know if she was kidding or honestly thought I might be getting a percentage of those points.

I felt terrible, here my client was having to pay much more in points than I had prepared her for in the initial net sheet, and then she thought I was part of the reason.

The deal was over, and it really didn't matter what I told her at that point, She would never know for certain that I wasn't getting any of her proceeds.

The moral of the story is, perpare you clients for the unexpected but possible fees. Things a differnent today, costs are more under control, but there can still be BIG surprises.

Be honest, and set realistic expectations.

You will be a hero in the end.