Some brokers charge a transaction fee to increase their bottom line. This practice has been found to be in violation of RESPA in Ga. courts. Here is a link to the warning that was given in Ohio by the OAR.
http://www.ohiorealtors.org/absolutenm/templates/article.asp…

Never...ever....EVER...eVer sign an exclusive buyer's representitive contract. When you sign this, you will likely be agreeing to this fee. A buyer should never be required to pay a fee since the Agents pay a trnsactional fee and some sort of portion of their commissions.

Since the major Bokerages have been bought up by large corporate conglomerates, these fees have been shoved down our throats. Do not stand for it!! In these economic times, these brokers are seriously out of touch.

$199 amortized over 30 years will cost you over $200.00 in interest!! Keep that $500 in your pocket and find a smaller broker that does not over-charge you!

Gone are the days of "Buyer Beware" yet we all have obligations to read and understand contracts we enter into. In Arizona, "if it isn't in writing, it doesn't exist" with regards to real estate. So like others have said, review your original documents. If the fee is there--there is nothing wrong with asking for it to be waived. If all parities were acting in good faith I cannot fathom an agent that wouldn't work with you on this matter.

Dave

The administrative fee has become an industry standard and does vary from $175 on up. At Coldwell, this is part of the forms our buyer's sign initially so is easy to forget. If, though, your agent neglected to have you sign, it's his cost.

If your agent negotiated a percentage of your closing costs paid by the Seller, which is also a common right now, it can be paid from there. Ask for a HUD 1 statement now, it may be that the cost will be covered there.

I should have mentioned in my prior post just ask the buyers agent and his broker to drop the charge. Many will do that. It never hurts to ask.
Good luck
Rich Lecinski
Long Realty
520-834-4663
http://rlecinski.longrealty.com

Home Buyer,

If you have not signed Buyers Broker agreement and agreed to a payment, you cannot be charged any fees.
Also, make certain that you have not obligated your self to this payment through a Purchase Contract? Contact Designated Broker and ask for explenation. You may have been mislead or you may have misunderstood your agent explanation ?

George in Tucson http://www.DesyinationTucson.biz

There maybe an administrative fee and each broker is different. I hav e seen this fee as high as $500.00 but you should have known about it in advance and most likely signed off on it. As is anything in life, buyer beware. Ask questions.
Richard Lecinski
Long Realty Co.
520-834-4663
http://rlecinski.longrealty.com

Nervehook,

Any fee has to be agreed to, in writing, before a deal is made - please re-read your contract. If you had a Buyers-Broker agreement it should be there and, if you signed it, you agreed to pay it. There cannot be a fee that you did not know about it - if there is one, complain to the Broker - you do not have to pay it.
Same Buyers Brokers charge fees - I am a full time Buyers Broker and charge NO fees other than my portion of the commission.
George in Tucson
http://www.DestinationTucson.biz

As a buyer's agent, I charge an administrative fee in addition to using a Buyer-Broker agreement to ensure I get paid the minimum I expect, but I am upfront and honest about it, and explain to my clients what it is and what it is for before we even go look at a house. Re-read the paperwork that you signed with your agent. If it is not in the paperwork, talk to your agent and explain calmly and rationally that you did not agree to that fee. If it is in the paperwork, again, tell your agent that even though you signed that document, it was not explained to you prior to signing. Your agent should be willing to work with you in either instance. If you are not happy with the resolution, call your agent's broker or branch manager and discuss it with them.

If you have a Buyer-Broker agreement, the amount that your agent is charging is specified in that document. If it is not specified and you did not sign any other documents authorizing the $250 then you should not be required to pay it at closing.

I am an exclusive, experienced, full-time Buyer's Agent in the Phoenix area. Unfortunately there is no standard practice regarding Buyer's Agents. Because unlike listing agents, who have been exclusively representing sellers since the origins of the real estate profession, Buyer's Agents are just now finally beginning to gain more interest. I understand why a Buyer's Agent would charge this fee, but should have been more clearly dicslosed to you up front, or you should have read paperwork more clearly. I think, though, that the burden of explanation lies with your agent. S/He should have more clearly explained that to you. That being said, there are some cases where I charge an upfront retainer fee (sometimes refundable, sometimes not) and there are some cases where my min fee is 3.5% of the purchase price. This means that if the co-broke fee is only 2.5%, then my buyer client will make up the difference at closing. Then again, the majority of the time, I accept what is offered to me in the MLS. Maybe you can negotiate that this MTV fee will be credited to you at closing, should you buy a home. This way, you won't lose any money if you buy a home and the agent won't lose any money either, if you don't buy a home. Feel free to call me to discuss this more, because I am an exclusive Buyer's Agent and understand this 100%.

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PAUL WELDEN
HomeSmart
Buyer's Agent Realtor
480-241-0081