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

 

 

 

 
Post is included in group: Realtors®
Post is included in group: Coldwell Banker Group
Post is included in group: Montgomery County Maryland Real Estate Professionals
Post is included in group: Washington, DC Mortgage and Real Estate Issues

4 Comments on Brokers Admin Fee - Like it or not - It is a cost of doing business....

MAY
03
2008
353,234 Points 11 Featured Posts Localism Sponsor Outside Blog
I too hate broker service fees and they haven't hit Arkansas, my little town, yet.  But I can see why buyers would not like it.  The commissions should cover all brokerage fees, they will think.  Sorry you have to put it out there.
2:54pm • #1
MAY
05
2008
3 Featured Posts Outside Blog
Believe me - it drives me crazy.  But it is what it is.  Ugh.
9:55am • #2
MAY
06
2008
By the way, your first company disclosed it too.  It was part of the Buyer Agency Agreement your clients read and signed.  :-p
2:43pm • #3
MAY
08
2008
216,568 Points 3 Featured Posts Outside Blog

Jim I know someone who I am working with right now to help buy their first house. I just told him that it will come out of my commission check. I don't want a deal to fall apart just because of $295. Great post.

8:18pm • #4

Leave a response…



(optional)
What does the graphic say?
 
Jimrileyyeltexbackground Rainmaker_large

James Downing - REALTOR®,GRI, ABR - DC Real Estate

Washington, DC

More about me…

Coldwell Banker Residential Brokerage

Address: 5028 Wisconsin Ave NW, Suite 100, Washington, DC, 20016

Office Phone: (202) 362-5800

Cell Phone: (703) 244-3971

Email Me


rets
Current Mortgage Rates See local rates Zillow Mortgage Marketplace Get this widget
James Downing's Profile
James Downing's Facebook profile
Create Your Badge


Links

Archives

RSS 2.0 Feed for this blog

Find DC real estate agents and Washington real estate on ActiveRain.