The Broker's "Admin Fee" - it is what it is. I don't set this fee; the Brokers do.
I do not know what states or regions of the country have Brokers that charge such a fee or n
ot; but what I can tell you is that most (in my experience), of the larger Washington DC Real Estate Brokers charge an Administrative Fee to all their Buyers and Sellers.
Real Estate Brokers are required by law; to store and keep their past records for several years. This "Admin" fee is 'said' to be used to cover this cost. I think it's crap - but I don't see any of it....
Now if I add on a "Buyer's Fuel Surcharge" for buyers who ask me to drive; may not be a bad idea. Everyone from FEDex to the Taxi's are charging a Fuel Surcharge. Hell, even the Cruise Ship Industry is charging such a fee....
Why not Real Estate Agents?? Because it's not the way to attract customers - I'm in sales after all !
Like it or not; like many things in this country; many services and fees in this country have been and are being passed on to the consumer. Whether it be adding your own cream & sugar to your coffee at Starbucks or bagging your own groceries or pumping your own gas --- service and the fees that are applied to them are being passed on to the consumer.
So when I present my new client with a form saying he is responsible for paying a $295 Administrative Fee he is "quite" displeased. Now my current company is the first of three brokers that even disclose this fee until the settlement table; it is; none-the-less being disclosed.
My Buyer is (in my opinion - I will say "enraged") that we are charging him this 'fee'. As he claims; NO COMPANY in the region of the country he is from; charges this fee. I understand; I am empathetic; however; this I don't control this. He is angry that this was one of the last forms to be signed. (Lesson learned; this goes on top from now on!)
This fee I cannot waive... So I will pay it... I'll use it as a tax deduction. My closing gift to my client may have to an average bottle of wine instead of fancy Champaign - but we do what we have to do.
Brokers: Instead of worrying about what other companies charge in admin fees; why not promote that you "DON'T CHARGE" such fees? Seems like a good marketing gimmick to me! But what do I know?


Call James for all your Real Estate needs and questions; servicing Virginia, Maryland and the Greater Washington DC area.
Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW Suite 100
Washington DC 20016
202-351-5800 Main Office
Licensed in DC,MD,VA
