I am an agent here in Las Vegas. Our broker charges a $395.00 Transaction/Doc Fee for every file. The agent can pay that themselves at which point it will be deducted from their commission at closing. Most agents I know just charge it directly to their client. It is definetely negotiable. It has to be disclosed upfront. It has to get paid, but it can easily be paid by your agent. If your agent is going to make a big deal about it then maybe you should re evaluate things. Just saying.
I work at a large company so the transaction fee helps with all the people there who manage the files and make sure everyone is protected.
Some brokerages charge a broker fee, a retainer fee and a transaction fee. CRAZY!!
Just make sure you are 100% comfortable with your situation. Buying a home is HUGE!! You need to be fully informed about the process and contantly in the loop!
Good Luck Mr. Cool!!,
Mrs. Cool....aka...Rockstar Agent!! HA!
Next, as a client of a Buyer's agent, you usually pay nothing as a buyer for our fee. Therefore, we drive you around, searching multiple sources, spending countless hours with paperwork and explaining things to clients multiple times. What other business do you know that does this much work for free? Before you start attacking us to pay the mandatory transaction fee every broker forces their agents to pay (rightful so), I'd like you to do a few things of self reflection. One, ask yourself how you personally get paid in your line of work and how others would think that was a "rip off", Perhaps you work for the government... that would be irony at it's best...and, two, next time you purchase property I want you to do two things, one try to complete the whole deal without an agent. If you use an attorney, it'll cost you a few thousand, if you do it yourself, you'd better be an attorney (if you are then you already understand that attorney's charge retainer fees up front before taking on a client and we, in real estate, usually do not so why would you ever write this question). Lastly, just before closing on your new property, I'd like you to take a look at your HUD1 closing statement (if you don't know, this is the form that breaks down your closing fees before you close on a new property) and notice the many other services i.e. title company, title insurance, home inspections, loan fees, appraisers, home warranty, legal fees, taxes, home owners insurance, and many more, that are listed on that form. Are all those services "rip offs" too? If you think they are, next time, I want you to buy your own property down at the court room steps auction, in cash, do all the homework yourself and let me know how much time it takes you before you overpay for your property and have a multi-tens of thousand dollar lien transferring with it that you are responsible for. Good luck to Sir. But if you want to do things the correct way and make some money without the stress in real estate, visit my website at http://www.lasvegasrealestateconnection.com and look over the correct home buying procedures. Then give me a call when your serious. Thanks for writing "Mr. Cool".
I suggest you speak with a few agents, and see which one you like working with, not just if they charge an extra fee. You can tell your agent (if you didn't already sign a contract) that you don't want to pay that, and that you'll find another agent. However, beware...
Prices are not set in stone... if you don't like it, find another Broker/Agent. However, you should shop around and find someone you like to work with, and not just look at what they charge.
There is no set amount. Saying there is, is illegal.
There are agents out there that will take a 2% commission, instead of 3%. Why? Well.... you get what you pay for. You can have McDonalds or Ruth's Chris.
Some people will take a cut to get the contract... but ask yourself, why? Are they desperate for work? Or maybe it's because they are getting a bulk deal, like selling for the banks. Or it's because they have no clients and will do whatever they can... and then I wonder, why don't they have clients?
I will not normally sell my services for less; I'm very busy, and I am selective of my clients, as they are of me. I provide quality services, open and quick communications, I make myself available most hours, and I meet my clients needs. Why should my company take a cut in income?
What if your employer came to you and said, hey, I'm going to cut your wages because I gave you the job? Really?
My main concern would be that my Broker/Agent is providing quality service and results.
The transaction fee is not a "rip-off". As many of the other agents have already explained, it goes directly to the broker (company) your agent works for - NOT your agent! At least it doesn't at most company's I know that charge it, the agent will not see one red cent. It is applied towards document storage, the associate that manages the documents, as well as the compliance department that verifies all appropriate signatures and initials are on all documents.
I know that this is a common concern for many buyers in the marketplace, and can be a deal breaker. True, some agents will negotiate it with you; perhaps they will split it with you, or some might cover the entire fee. What you need to understand is that the fee NEVER gets negotiated down with the broker, it is simply being negotiated as to how much you are asking your agent to give up out of their commission, which, by the way, we work VERY hard for.
So, now it's my turn to ask you a question Mr. Cool. How much is the property you are purchasing?
The reason I ask is because though some agents are more than happy to split or cover the fee entirely, it might not make sense for your agent to. ***this is just an example, and might not apply to your transaction, but might to someone else reading this***
Let's say for example, you're buying a $30,000 condo. And *if* we as agents are lucky, the commission on this $30,000 condo would be 3%, which is $900. Now, most agents work for companies that take what is called a "split". Let's say your agent gets to keep 80% of his commission, that's $720. Now, take at least another 15% off of that number, as your agent should be paying quarterly tax payments to the IRS. So, we're at $612 now, which is already a low number for the amount of work an agent puts into EVERY transaction, as the work load is the same regardless of the cost of the property, just so you know. It's time to close, and you don't want to pay your transaction fee, so the agent has to pay for it out of his/her commission. Wow, your agent just made a whopping $212 after chasing around showing you property, wasting gas, spending hours on paperwork, file completion, and confirming that everything is set and in order with the title paperwork, hoa's, inspections, etc... And depending on how long we work with some clients, sometimes months, and hundreds of miles of driving, by the time a deal like this is said and done, we've actually lost money. Doesn't really seem fair, does it?
Have you ever purchased a car? Every car dealership I know charges a document fee. It's the same thing.
I apologize that I didn't sugar coat this answer for you. But please understand that agent's have to fight tooth and nail for their commissions these days, and the workload is double when you factor in bank-owned and short sale properties. We have to put food on our table like everyone else. The fee is the cost of business, but free or cheap doesn't always equal better...you get what you pay for.
There is no standard and frankly you have two choices, refuse to pay it and tell your agent if they want your business it's their problem not yours, or simply find another agent to work with.There are lots of comapnies that don't charge any such fees, they get their commission and that's it. I've never charged a fee, a bonus, etc. and do better than 90% of all agents in the business.
Only "COMMISSIONS" can be assessed to either the buyer or the seller. An agent can charge a buyer a flat-fee commission (or a percentage of the sale or a combination) on a transaction but of course you have to agree to it. If it is called a document fee, storage fee, or anything but commission there is an issue. It is a bit of a technicality since the effect on your wallet is the same. But legally overhead can not be charged to a client as a separate fee. It must be commission earned.
I would be concerned about Agents who undercut others, or if their company has fees and they dont charge it , just because you get someone cheaper doesn't mean your getting the best either and it could even mean they might be desperate for work.
Let me quote "I would be concerned about Agents who undercut others, or if their company has fees and they dont charge it , just because you get someone cheaper doesn't mean your getting the best either and it could even mean they might be desperate for work."
My brokerage does not charge document storage fees or anything to the buyer. Brokers are REQUIRED BY LAW to store the documents...we do not have a choice. If you can't make money on a property, then don't sell it. If you need to sell it to keep a client happy, then take the loss. I personally have 5 closings in the next 5 business days. Not all of these were huge paydays but I did not charge the buyer any fees. I will take my commissions and be happy. Why do we need to charge fees, above and beyond commissions, to do our job right?
Just my opinion....
Southern Nevada Property Management
Your Agent hopefully disclosed the transaction fee to you in the being of your transaction. Agents charge that because their office they work for requires it. I see on some offers that other agents have placed on my listings they are charging much more that $400. I've seen $1500, I find that fee to be out of line. I'm not sure where some agents come up with that number.
I'm not sure on the duration of the time necessary to keep the files on hand. I believe it 5 years. So, that's typically the reason fot the transaction fee.
Penny O'Brien with Simply Vegas
3042 S. Durango
Las Vegas, NV 89117
I'm with Lauren on this one. Her scenario is the BEST example as to why everyone is seeing this fee pop up again. I agree the agent needs to discuss it with their buyers and sellers prior to contract writing. In Las Vegas, there's a place for the Broker Doc fee in the GLVAR contract.
$400 doesn't sound all that bad. When that fee exceeds $495, I would raise an eyebrow. Then again with gas and everything else inflating I wouldn't be surprized to see Broker Storage costs, E&O Insurance and their cost of decent staff raising as well.
Realtor, Developer, Builder/Broker
We found a house through a buyers broker (did not sign anything with her yet.)
She took us around to 13 houses in 3 days when we flew in from NY.
We found a house we liked, about to make offer, and she sends us email requesting
2.4 % as a buyer broker fee ($8,000). Sounds outrageous though we are first-time home buyers.
There are no standards in this area. Generally sellers pay all commissions but that is not always the case.
You should be represented in writing.
Sellers and Buyers should also shop for a local Realtor, before you buy or definitely before you sell call 2 or 3 Realtors that have Great Internet presence and find someone you click with! While visiting also find out what fees will be charged. Commissions are negotiable, face it, Sellers are taking a hit, agents should help absorb that. Sellers need to find the best agent for the lowest commission to sell their property. Buyers need to find the best agent that understands that their services are Free and will be paid for by the Seller and only if the deal closes.
If it is worth doing, It is worth doing for Free. How Great i ain't.
These fees are charged by larger franchises too offset the loss of profits.
I recently left a large national franchise Real Estate company that charged the transaction fee.
That fee was $199. Any thing over $199 that I charged I could keep. So if I charged $250 I could keep $51 of that transaction fee.
Now each state may be different as to the "tranaction fee"
Commissions are done differernlty.
I am with a Great Local company that does not charge a Transaction fee.
David Cooper Foreclosure Specialist with 35 Years Investing Experience. *Free List of Low Priced Bargain Homes, call +1-702-499-7037 or clock website
Hopefully this was disclosed to you upfront? Every agent is different. I charge a "transaction fee" but call it "broker compensation" on my files. It depends on the purchase price though... For example, I just helped a client purchase a condo at auction. I spent a lot of time researching several dozen properties, taking photos, running numbers, etc, not to mention everything during contract-to-close. The condo was purchased for $48,000. The auction company agreed to pay a 1% commission... which is $480. And my broker takes $375 a file... leaving me with $105 (which would probably not even cover the amount of gas that was used driving around town!). Most of the time I agree to work for $3000 (which is normally made on a $100,000 purchase). But I go above and beyond... I help coordinate repairs, meet with vendors, list their property for rent if they're an investor, etc. My clients have all been happy to pay the extra fee. I think it really comes down to whether or not you feel that your agent is worth it.
This is plain and simple a "delears fee" that the broker is charging no other explanation.
Document storage...? Ask them to show you how much does it cost to store documents on top of the commission the seller pays them.
Actually, over here in Florida, most brokers moved to word it "additional brokers compensation" which is what it is...no buyer or seller should agree to pay this fee!
David Cooper Las Vegas Real Estate Investor in Bank Owned REOs with Cash Flow. email or call for FREE list +1-7024997037 not a real estate agent
Your agent does a lot more for you than open the front door and write a contract. In fact, our job really starts when you have found the home you want.
Once you have identified the home you want to buy, your agent has to determine a fair offer price, draft and negotiate the contract, get it into escrow, arrange and supervise inspections, negotiate and verify repairs, Insure that the lender is moving ahead and will get documents to closing on time, resolve any issues that arise (and they always do), verify and explain to you the Title Commitment and Survey, review the closing documents and HUD-1 for accuracy, get all parties to the closing table and successfully close the deal.
Every detail must be verified and documented. Then there are the utilities to transfer, Change of Address stuff that Buyers often forget, and other assistance with your move. That's a ton of extra work that you don't even see. Many of us have hired assistants to help do all that tracking and documentation. The transaction fee should spell out exactly what is covered and how much. It's a fair charge for all that protection for you.
Doc Stephens, REALTOR