Update December 7, 2016: The new fee discussed below has been passed by the Suffolk County legislature per the County website…
$300.00 per document MORTGAGE VERIFICATION FEE effective January 1, 2017
In this short video clip Nancy Pelosi opines about the proposed increase in certain real estate fees and the implementation of some wholly new ones by the Long Island counties of Nassau and Suffolk!
The Congresswoman from California appears to firmly believe that any increase in these costs can be easily absorbed by the citizens who will be forced to pay them.
Upon closer inspection this video is actually not about the affordability of real estate recording fees on Long Island at all, but instead was of the former Speaker of the House of Representatives assuring the American people that healthcare costs under the Affordable Care Act would be, well, affordable!
While different scenarios, the fact of the matter is that the Congresswoman was wrong about Obamacare and the leadership of Nassau and Suffolk Counties are in similar danger of moving the cost of consummating a real estate transaction or of refinancing a mortgage out of the reach of ordinary citizens. Citizens for whom every dollar that’s required to close a real estate transaction is closely accounted for.
Some on the outside looking in might say that if you’re buying a $400,000 home, what’s a few more bucks out of the pocket at the closing table? But the reality is that the people who say that will typically be politicians with another agenda altogether or the wealthy for whom money is no object.
The bottomline is that if raising real estate fees is to become a yearly maneuver by county government in order to avoid the ‘pain’ of cutting expenditures or the politically unpopular move of raising property taxes, there will come a time when the reduction in transactions due to higher fees will negate whatever increased cash flow the legislators thought they would be receiving.
As Margaret Thatcher once famously said, government will ‘eventually run out of other people’s money.’
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