Today I opened an email from my favorate Title Company asking once again if I will be charging a Transaction Fee on our Upcoming closing. Once again I said "No. I dont believe in them." A short while later she calls me to get Mr. Sellers new mailing address and laughing she said "I know you dont charge a fee but I still need to check."
Here is my take on Transaction Fees, I can not see it as anything more than lining ones pocket.
Yes, we work hard and go above and beyond for our Customers but that is not a good enough reason to ask for a bonus in my paycheck. I have heard from friends that "their broker" makes tham charge it. Unless that is in writing, it's Bollocks. I have also heard from another friend "i had to pay for the mls". DUH!! We all pay for the MLS, how the heck do you think I found the house to bring the buyer?
Until I hear a Legitimate Reason for one I do not believe in charging MY Customers a Fee for Giving me Work.
OK, I have to admit one thing. I LOVE To see Transaction Fees on the HUD-1 for the other Brokerage. It helps me keep my rosey smell with my customers. I make Sure the folks at the table HEAR and SEE the Transaction fee section.
I have noticed that the People Charging their Customers a Transaction Fee are Ususally the People who Reduce The Compensation in the MLS to the cooperating broker. That just Tastes Bad to Me so I negotiate that before booking the showing appointment.
I was told I am stupid not to charge a Fee. Although I am no member of MENSA, stupid I am not. I see no reasson for it and I will Never Charge It.
I do have an exception. If there is a mitigation fee for a short sale imposed by the lender I will charge an equal fee to the Selling Side (The Lender) to cover that fee. Your best bet is to have this on the first HUD that goes to the lender. I know they sometimes pop up late in the game but it never hurts to try and get it back on that HUD. If The Listing Side is passing the fee along to the Buyer.....we probably will not go look at that house. If it is being passed along to the Buyers Agent (me) I will eat the fee. My Tax Accountant will figure out what to do with it.
So There You a Have It. NO Transaction Fees With Me.