Administrative fees. Add on fees. Transaction fees. Processing fees. Broker commission fees.
Well, let me say right off the bat that whatever you want to call it PhD Homes & Realty doesnâ€™t charge add on fees.
You can read plenty of information on the internet about buyers who are surprised at closing when they see these additional and unexpected fees show up on the settlement statement at closing.
Why are buyers surprised?
Most buyers work with real estate agents on an informal basis and only sign an agency agreement when making an offer at which time there are several forms to complete and so the administrative fee clause is easy to miss.
Most buyers are under the assumption that the agent is working for free for them (the commission the buyers agent earns typically comes from the listing agent).
Sometimes the administrative fee doesnâ€™t even show up on the good faith estimate provided by the bank when pricing the mortgage. Rather, the buyers agent administrative fee first shows up on the complex settlement statement given to both parties at closing.
Finally, many agents of brokers (think large real estate companies) are not happy these fees are charged to their clients but cannot waive them unless the agent wants to have these fees deducted from their commission.