I’ve seen an annoying new trend. Buyer and Seller “Broker Fees”. It may go by various names, but amounts to the same thing… what Clark Howard would call a Junk Fee.
These are quite different from the other fees that may be involved in a real estate transaction, and there are a LOT of fees. The lenders have fees, the closing attorney has fees, there are state fees, county fees, insurance fees, delivery fees… Simply put, buyers and sellers are paying plenty of fees. Adding some BS junk fee like a paperwork fee, transaction fee, administrative fee or broker fee is just adding insult to injury.
There is already a commission or sales fee that the real estate broker and agent are sharing. There is no reason to add another official sounding fee on top of this that is after the negotiated amounts.
And, that is how it usually works… the seller negotiates the fee for selling their home, and everyone shakes hands… and then the agent mentions that there is a $495 paperwork fee or something along those lines. They say it is required… maybe not saying that they are the ones requiring it…
In the case of buyers, after going through the buyer’s agency agreement and telling the buyer that the commission is generally paid by the seller, they hit the buyer up for a transaction fee… again, saying it is a requirement.
There are various reasons for this… What it mostly comes down to is that people and companies in the real estate industry are hurting for income. But, many of our clients aren’t exactly rolling in money… and even if they were, it isn’t right to tack on junk just because we think we can… Some agents are working for companies that charge US a closing fee for closing a transaction instead of charging a split and the agents are passing it along. It should be part of their cost of doing business.
I just say NO!
No additional fees. You will know EXACTLY what you are paying for my services prior to delivery and prior to completing the negotiations. I try to deliver more for EVERY client than other agents… but that doesn’t mean I need to add junk fees on top of fair fee structure.
And there are some different options available for sellers… but that is another post.
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