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Raymond Franqui's Blog

By Raymond Franqui | Agent in Tampa, FL

The Buyer's Transaction Fee

A buyer  transaction fee is charged to the buyer and paid to the buyer's  real estate agent at

closing. The agreement is reached in writing by the buyer prior to any agent representation. The

fee is not a standard practice in the industry but rather a choice of a company or agent for

doing business. The fee is usually in addition to any commission earned which is paid by the seller in

the transaction. A negative connotation is sometimes suggested with this fee. Infamous "Junk

Fees" are additional fees without added value. Only asking  the company or agent to explain the

reason for the fee can help the buyer determine its value. As consumers, we all benefit from the

choices our open market creates because of competition. Business owners are entitled to price

their products or services an ultimately the consumer decides where value is. We have

basketball,baseball and football players making millions and people pay hundreds of dollars to

watch them play. Some people will pay over 100% more for a pair of Nike's or fashion name brand clothes while others will
always prioritize their choices by the least expensive.

 I personally do not charge a transaction fee. That does not mean

others in the business are right or wrong but simply that it is my business choice.In my opinion

what makes a transaction fee be fair or unfair is whether or not the agent clearly explained the

fee and the buyer accepted the fee as part of the conditions of working with the agent. Only the

buyer has the authority to choose what valuable means. Perhaps the extra fee is only secondary to

the additional benefits the agent may be offering.If the buyer was not informed and did not

agree in writing of a transaction fee prior of agent representation,  I find unprofessional,

unmoral and perhaps illegal any actions by the agent to coerce a client in to signing related

papers and demanding payment. Fortunately, these are the  practices of a few agents but is always

wise to be aware.The key is to settle this conversation before agreeing to work with the agent.

Another helpful advice I can give buyers is to ask for the purchase agreement paperwork and

possible addends. With help from the agent, the buyer can get familiar with the paperwork and

have a copy to review at home. This action could help identify unfamiliar forms at the time of an

offer and  asking then can save  headaches later.


Please give me your feed back in the comments , thank you.


Raymond Franqui   (813 598 8398)
Real Estate Agent
License # SL 3068637
GUARANTEED REALTY SYSTEMS LLC
8902 N Dale Mabry, Suite 101
Tampa, FL 33614
Phone: 813-933-0677
Fax: 813-932-3409

Comments

By Mary Franqui,  Thu Apr 4 2013, 18:51
Thanks for the great info!! :-)

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