Millie C Lumpkin, Realtor
Century 21 Pro Team
The first one was a regular 30/70 split with no fees to buyers, family own great atmosphere.
The second was corporate giant, started at 58/42 split with fees of 295 to buyer plus 250 from agent per transaction + 6% from top for corporate profit. That was a dry and sterile location.
Now I am with a 100% broker, no fees to agent, no fees to buyer, everyone is friendly and ready to lend a hand.
If so many good agencies can "keep records for 5 years" without requesting a penny from clients, clearly those who have fees just want to feed their corporate pockets. I love been able to tell my clients "and we charge no hidden fees at all".
Charles Rutenberg Realty
And I agree, I don't care what any one charges, how much how little, nor do I care what they charge for. I just think they need to be very upfront what they are going to charge for way up front and not try to slip is by on the closing statement. I have seen this done and it's a ugly practice.
Agents work hard, and when you do understand how the money flows, our split is generally a lower take away than most consumers imagine. But discloing fees and who pays what is essential.
Good luck getting clarification and resolution with this matter.
Unwavering Commitment to Service - in New Jersey
1) Unless you agreed to this fee in writing in advance, you cannot be charged the fee.
2) Unless a tangible service is being provided to you for this service, you cannot be charged (RESPA)
3) The fee, if charged, MUST show on the HUD-1 Closing Statement showing exactly what tangible service the fee was for. (RESPA)
If the agent is trying to recover some of their business costs - it must show on the HUD-1 Settlement Statement as "Additional Commission" - they cannot "hide" it as a junk fee.
Everything is always negotiable.
Best of luck,
Broker / Owner & Certified HAFA Specialist
Thom Colby Properties
Newport Beach, CA
Moving Lives Forward (TM)
We NEVER DOUBLE-END a Transaction in our Brokerage. There is NO benefit to the Seller or Buyer but only benefits the Agent.
888-391-5245 Direct Cell
On the flip side, it's perfectly reasonable for an agent to charge a buyers agent commision on certain transactions so long as he tells you about it first and you agree to it and sign a buyers agency agreement. If he's just trying to sneak it by you then that in my opinion is not ethical and you should challenge it.
The fact of the matter is that there is no profit in really low priced transactions if the buyers agent isn't charging a buyer agent commision. For example, If you're looking for properties in the $40,000 range, a typical commision paid to the buyer agent by the seller is 3% of $40,000 x the split to the agents broker which is $1200 to be split between the broker and agent. The result is an amount at which no rational realtor would want to assist you without charging a buyers commision.
Personally I don't charge any buyers agent fees unless the price is below $75,000, and I always advise my clients and we sign all buyers agency documents before showing properties. Its the only way I can provide a quality service to those buyers and stay in business. If a client doesn't understand its because they just don't have enough information.
Residential work can be hard - you take the "good" (above) with the not so good.
I'm only supposed to commercial for my broker.
He asked me why I did some local apartment rentals -
1. It filled in some gaps
2. I met more future buyers this way. So that "$300" crappy apartment rental commission turned out to be a $105,000 commission to me 1 year later on a $3.5 million commercial sale.
You have to be smart to survive - and not so greedy.
Think where your next meal is coming from. There is the thing called the Internet.
Oh, that reminds me John, you do have a nice winery up there don't you. A little sweet for my tastes, but a fun side trip.
If you signed an agreement paying her $695 in additional commission pay it. Did you buy a house forty cents on a dollar? Was it a short sale, foreclosure or distressed property. Was it less than $75,000?
I dont think you can appreciate how much more work we do and for how much less in this market.
Average house 3 yaers ago, $275,000 @ 3.5% = $9,625.00. Half to the house $4,812.50 leaves $4,812.50 to the agent that went around looking at houses with their gas, did research and advised you on price and terms, maybe introduced you to a lender, insurer, inspector, mover etc. Now 60 days later and after all the fires are out, you close and are ready to begin a life in your new home. Total time spent in this example by the agent on your behalf 75 days or for simplicity 2 month 2 weeks. $4,812.50 divided by 10 weeks is $481.25 per week or $12.03 per hour BEFORE all the taxes, expenses, licenses and being available to you almost 24/7.
Now look at the same house in todays market. Sale price is $75,000, commission offered by bank 2.5%, 90 days with a good bank and organized agent to close.
$75,000 x .025 is $1,875.00 split with the house = $937.50 divided by 13 weeks = $72.11 or $1.80 per hour with HIGHER gas prices and higher fees and costs and taxes. And before you can even blink, lets say you actually close in half the time, 45 days, that doubles her pay to a whopping $3.60 per hour!!!
We selected this industry because we love it, most of us anyway and we take the fgood with the bad, but get real here. If your happy with the house and her service, pay her and go enjoy your house and live happliy ever after. If you didnt sign it, DONT pay her, but dont waste your timer saying, you didnt know what you were signing, you initial and sign each page at the bottom for a reason.
Check all of your paperwork and if there is no agreement signed by you to pay the $695 garbage fee, tell her you will ABSOLUTELY NOT pay it!
I see well known firms charging $300 fees to buyers and sellers and even the buyer's agent. It's very greedy especially on a $300k transaction that pays broker $9k in commissions.
All the best,
Remember everything is negotiable. Call other realtors and see what their brokerage fees are. My office is $250.00. The office has to keep your file for five years. This is not a fee the agent keeps.
Susan Penn, PA
SFRShort Sales& Foreclosures Certified
2000 Main Street, Weston, Florida
You shou;d check your contract and let your buyer broker know how unhappy you are. If you have not bought a house yet, find a new agent and asked to be released from this greedy contract.
Good luck with your purchase
I guess everyone can run their business anyway they want. Once a Selling agent was going to charge my client $750 for Record retention. I stood up, grabbed my client told the agent I was going to sue him for my commission and walked out of the closing. He came running after me in the parking lot saying he was going to pay the expense out of his $8,000 share.