However, I do find the practice of collecting an upfront fee to be credited at closing, especially in states such as Florida, where the foreclosure issue has distorted the real estate landscape in unbelievable ways, may be an appropriate environment for such up front fees. A buyer looking for a $30,000 condo or $50,000 3/2/2 will be charged a flat fee meeting my minimum compensation requirements. A recently sold villa sold for $20,000! Calculate the compensation on that! Yes, is some circumstances, the buyer needs to understand, this isn't a hobby, it's a business ......for us.
Best of success to you,
ReMax Realtec Group
Palm Harbor, Fl
727. 420. 4041
With gas prices extremely high and so much inventory to show buyers, I am thinking it's a smart trend to begin.
Some very successful companies like redfin charge buyers for fee for showing "x" amount of homes and this fee will be refunded or discounted at closing. I don't know how they manage to get people to pay those fees when other companies are offering the service for free but I do think it is a really smart thing to do if you can pull it off.
I guess you can charge an up front fee if you're offering rebates at closing, the only problem is that in states like New Jersey where rebates are still relatively new and companies like mine being only about 1 of 2 in the state offering them have a lot of resistance from the state realtor organization who is helping shape the laws, rules and regs on the topic which just making it harder to offer buyer rebates with a lot of restrictive advertising rules and disclosure requirements out the wazu and to top it off the lender needs to agree to the rebate offer which many of them will not allow outside of normal loan concession guidelines such as the limit allowed for closing costs.
I was fascinated at the concept of charging buyers to show homes and how normal this is in other countries. Maybe it will come to being here and maybe not. Let the market go where it goes and we will see what happens. With alot of buyer's agents being run out of business, this may end up being a reality.