Home Buying in Grand Rapids>Question Details

Karmen Low, Home Buyer in Grand Rapids, MI

Can anyone shed light as to why there is a fee (up to $235) associated with the "Exclusive Representation Agreement as Buyer's Agent" contract?

Asked by Karmen Low, Grand Rapids, MI Tue Feb 4, 2014

I am pinching my pennies wherever possible as I am hoping to purchase a home as early as June 2014 and for me $235 isn't pocket change.

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Answers

11
Each agent and agency has their own fee's. Their is no written rule or law that says you have to pay any "fee". If you shop around you will get many agency's that don't actually have a fee and some charge much more than $235.

If you have any questions feel free to contact me. We can help you out without any fee.

Thank you,

Jason Lash
Prudential Preferred Realtors (soon to be Berkshire Hathaway HomeServices)
Office: 616-447-7045
Http://www.GRHomes.net
1 vote Thank Flag Link Tue Feb 4, 2014
Nearly all brokerages charge a transaction fee to the buyer, at closing. I havent seen one agency in the past year that didnt. If that is disclosed in your Buyers Agency agreement, the Realtor is disclosing all fees up front, something we all should do for our clients.
1 vote Thank Flag Link Tue Feb 4, 2014
Hi Karmen
The fee you are asking about is usually an "Add-on" fee for sales that are involved with these two type of home sale: "Foreclosure" or "Short sale" (but not always)
Each Property that has an additoinal "Fee" outside the normal Brokerage Fees needs to be disclosed by the seller to the Buyer. A good "Buyer agent" will help explain all the "fees that can be part of the purchasing process, so you can make an educated decission and keep pinching those pennies.
If you have more questions feel free to contact me at 616-974-6212, happy to anwers any quesions
0 votes Thank Flag Link Thu Feb 6, 2014
Most brokerages charge a small brokerage fee to both the buyers and sellers, however, they can vary from company to company.
Web Reference: http://www.BrekSchutten.com
0 votes Thank Flag Link Tue Feb 4, 2014
Many agents and companies charge an admin fee like this it should be disclosed up front. I have seen this fee range from $200-$700. There are ways to help assist with your costs involved with purchasing a home. Give me a call or email me so I can go over it a little more with you. Rob.
0 votes Thank Flag Link Tue Feb 4, 2014
I have been teaching first time homebuyers the insand outs of purchasing their first home for over 12 years at the Inner City Christian Federation. I teach my students that there are many companies locally that charge a fee and many that don't and that you should always ask if there is a fee. If you're looking for someone who specializes in first time home buyer representation and has the heart of a teacher feel free to give me a call at 616-889-7662.
0 votes Thank Flag Link Tue Feb 4, 2014
I don't charge a fee send me your number or give me a call or text
616-893-1672
Mike childress broker for Childers & associates realty
Mike@chilhomes.com
0 votes Thank Flag Link Tue Feb 4, 2014
It's not common in my area and I would think it's not common in most areas. Some agents may opt to do it as part of their business practice but I would bet they're in the minority. You will definitely be able to find an agent that doesn't require a fee to be paid. Agents are only compensated when a sale closes so I imagine some agents opt for this as a way to insure that you're serious (I was going to say "and that you'll remain loyal to them" but they're having you pay while signing a contract). It's not the way I practice real estate but business approaches vary. I know of an agent locally who has buyers pay a percentage in many cases. Often these are buyers who, like you, are scraping together their money to buy their first place. I can't conceive of charging people in that situation a fee that's outside of the norm. Interview other agents and ask about any fees at your first meeting or contact.
0 votes Thank Flag Link Tue Feb 4, 2014
It's not uncommon really. Agents use it as a way to weed out the real buyers from the people who are just looking. This is how we make our living...we're not volunteers.

If you're looking in June, it's a little early to hire a Realtor and put any money down. I would start...on your own...finding the neighborhoods you like, getting pre-qualified, etc. Hire an agent in late May or the end of April.

When you want to buy a home the best place to start is to hire an Exclusive Buyer Agent. EBAs only work with homebuyers and there is never a conflict of interest that will jeopardize your negotiating position. Visit http://www.naeba.org for a referral to an Exclusive Buyer's Agent in your area.

I've written a best selling book called Buying a Home: Don't Let Them Make a Monkey Out of You. It'll teach you how to buy a home and get a mortgage without getting ripped off. Follow the link below.

Best of luck!

Alysse Musgrave
214-734-3863
Alysse@HelpUBuyAmerica.com
http://www.helpubuyamerica.com
0 votes Thank Flag Link Tue Feb 4, 2014
What did the realtor say about the fee?
0 votes Thank Flag Link Tue Feb 4, 2014
Bert,
The agreement? contract? was presented at the end of an initial meeting between myself and a potential realtor. If I'm recalling correctly, I believe she said it was 'standard fee'.

I 100% understand agents not wanting to be strung along by non-serious buyers. But someone like myself, who is extremely serious, but not wanting to sign/pay something until she completely understands what it's for.
Flag Wed Feb 5, 2014
http://homevisor.com/blog/10-Interview-Questions-to-Ask-Your…

http://homebuying.about.com/od/realestateagents/tp/Agentinte…

I would not feel comfortable paying a fee. You should do more research and interview more agents.
0 votes Thank Flag Link Tue Feb 4, 2014
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