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Mrcool, Home Buyer in Lake Las Vegas, Hend...

What is Transaction fee That buyer'broker can charge to home buyer?

Asked by Mrcool, Lake Las Vegas, Henderson, NV Wed Apr 6, 2011

I am a home buyer/invester. My buyer agent charge me $400 for buyer' broker transaction fee. Q1. Can buyer'broker Charge buyer such a fee(I never heard of such a fee,some kind of rip off?) Q2. What is the standard that the buyer' broker can charge the home buyer SUCH A FEE? By the price of the house or Flat rate? I personnally think this TRANSACTION FEE is a pure rip off. Any pundits out there Please give the FACT. THANK YOU. MR. COOL

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Mr Cool!!! HA!! I love it!!!!

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!
1 vote Thank Flag Link Wed Apr 6, 2011
Hello "Mr. Cool", now wait a second, before I can really respond to this question, I need to understand your knowledge of our business first. Do you understand that an agent is different from a broker? They serve two different rolls within a company structure. The agent usually charges a buyer nothing due to a Seller paying their commission. A Broker always charges a Transaction Fee because that's how they make their money. In the state of Nevada, an agent cannot conduct business without a broker. This fee is variable and varies in price. I've seen as low as $200 and as high as over $1000 dollars here in the Valley. Like any other business out there, some of these dollar figures are high because they provide explanatory service, some are low, because they provide bottom of the barrel service. Some are just high because we live in a capitalist society and the price is what it is because the broker wanted to charge that. My advice to you is to shop around if this fee is that important to you. If a property is really small (under 50K), I've seen addition money be added to this fee because, otherwise, it's business impractical to work for such a small commission to be given to the agent as just being in real estate is an expensive business for agents and brokers alike. The alternative would be not to sell or buy properties of low dollar amounts at all, which would hurt the consumer and our economy. So to answer your first and second questions, brokers must charge this fee because that is one of their only sources of revenue as most do not take commission splits from the agents that work underneath them and a broker is needed to conduct business. And two, there is no "standard" transaction fee.

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".
4 votes Thank Flag Link Sun Sep 25, 2011
this was a little rude, imho. Everyone is entitle to make money. I think you made the point. But i think does it make sense for the buyer to pay the transaction fee that the realtor is usually accustom to paying?
Flag Tue Oct 29, 2013
Hello 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.
4 votes Thank Flag Link Wed Apr 6, 2011
Mr.Cool,
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.
4 votes Thank Flag Link Wed Apr 6, 2011
The $400 transaction fee is a nonsense fee recently implemnted by most of the larger national real estate companies (Coldwll Banker, Prudential, etc) This fee doens't go to your agent it goes to his company who hands it over to the Franchise to which they belong. They are doing nothing at all for it and it's simply a fancy name for a shakedown.

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.
3 votes Thank Flag Link Thu Sep 29, 2011
Hi Larry,
My family and I are first-time home buyers, about to make an offer on our first home in Cary, NC. Our buyers broker, who took us around to about 13 houses in 3 days while we flew in from NY, is charging us 2.4 % ($ 8,000) of the offer price as her buyers broker fee. She did not tell us upfront either. Before we met her, we asked on the phone, how she would get paid, and she said that she would receive her commission through the seller. A family member highly recommended her, so we trusted a little too much and didn't ask to see the buyers broker contract upfront. From your earlier post, the price sounds outrageous. Any thoughts?
Flag Wed May 14, 2014
Wow! after reading most of the answers I have to say, thank goodness my brokerage does not charge this junk fee also known as transaction fee. It's just another way to get money from buyers and sellers for doing their job...but wait that's what a commission is for!
3 votes Thank Flag Link Tue Sep 27, 2011
I know it's all about making money but I have a problem with real estate companies charging a transaction fee to buyers and sellers, and I think buyers and sellers do too. Buyers and sellers already think we make too much money on the commissions and then we are trying to hit them up with another few hundred dollars for what they feel should be covered with the commission payout. I think it is a short sighted practice and I do not do it.
3 votes Thank Flag Link Tue Sep 27, 2011
Here is the fact that no one chose/knew to say: "Transaction Fees" are a HUD/RESPA violation.

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.
2 votes Thank Flag Link Tue Apr 19, 2011
In Nevada, its a very customary fee. It is true that some agencies do not charge it , but as Ellen said below, if you get a good Agent , they will go above and beyond and make sure your very protected. I even go further when its an investor by searching for tenants , I take the time to put it in mls , Put a lock box on their house and take the time to show the property for them (keep in mind, we do not get paid for any of this) . Also it is required by law that your documents are backed up on CD and your file must be stored for 5 years. This money helps pay for storage, and the receptionist who must do the work , someone has to pay for this, if its not you then they will cut it from our commissions. If you get a really good Agent, they are worth a few hundred dollars.

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.
2 votes Thank Flag Link Wed Apr 6, 2011
Just because an agency charges a lower commission to sell a house doesn't mean they do less of a job than someone that charges a higher commission. That's just nonsense. Larger agencies would like for people to think this because these agencies do not like the competition; it's just that simple.
Flag Mon Aug 25, 2014
This is another thread that should be CLOSED as it is from 2011
1 vote Thank Flag Link Thu Jan 9, 2014
Now, this overly-debated local topic, is over 5 months old. I think Mr. Cool has long unsubscribed to this thread.
1 vote Thank Flag Link Fri Sep 30, 2011
The transaction fee is different per brokerage. Personally I think $400 is high. Our brokerage charges a flat fee of $250. This fee is mainly for the brokerage to store the records for the legal time frame. The transaction fee should always be disclosed to the client prior to closing.
1 vote Thank Flag Link Tue Sep 27, 2011
I have to say I am disturbed by what I read here.

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....


Jeffrey Sklar
Broker
Southern Nevada Property Management
1 vote Thank Flag Link Mon Sep 26, 2011
While I see both sides of many of these replies, I have to make a few points. I am lucky enough to work for a great company that doesn't charge any transaction fees or buyers broker fees, but the split I have to make with my company is a little higher because we don't pay any overhead or have desk fees to work out of the office. While we are all in a position of a very tough economy, working harder, I have chosen to work smarted not harder. And because of that When I have clients in a jam, I am willing to take a reduced commission and I don't work any less hard to get a home sold because I'm getting paid less. I think someone said "you get what you pay for" and "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 have to respond by saying that I'm not desperate for work, I'm not getting a bulk deal and I have a lot of clients and repeat business, and that's because I realize that in this market, everyone needs a break! Not everyone is in a position to take a cut, and I'm probably not everytime I agree to do so, BUT I believe in Karma and what goes around comes around. I am willing to help however I can, from helping a client stage a home to helping pay for an inspection or taking less on a commission to get the deal closed, and you know what? People appreciate that, and that leads to referrals! Again, what goes around comes around, what I have given up on a commission, I have gotten back 10 fold in referrals and future business. I'm just sayin...
Web Reference: http://www.carolinaone.com
1 vote Thank Flag Link Mon Sep 26, 2011
Guys, this is 4 months old.
1 vote Thank Flag Link Wed Aug 3, 2011
Hello Mr. Cool,

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

Penny@PennysProperties.com
PennysProperties.com
702.321.9383
1 vote Thank Flag Link Mon Apr 11, 2011
During the last decade you didn't see the Broker Doc Fee very often because most of the sales we bringing in larger commissions. The agents could afford to cover the fee for their clients.

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.
1 vote Thank Flag Link Wed Apr 6, 2011
Mr Cool,

Why have an agent anyway? You could represent yourself?

Not trying to be harsh...

Make sure your agent is providing quality, if the price is too high for you, address it directly with your agent.
1 vote Thank Flag Link Wed Apr 6, 2011
Many agents charge this to their clients to recoup fees their broker charges them. It's totally negotiable between you and your agent and there is nothing "standard". I don't charge a transaction fee.
1 vote Thank Flag Link Wed Apr 6, 2011
They can charge anything they want, do you have to pay it, well no, choose another agent who does not charge it. I offer free buyer representaion and get paid my commission from the listing broker a fee wither offered in mls or agreed to before an offer is made. Simply move on if you do not want to pay it or try and negotaite with that agent.
Web Reference: http://www.ScottSellsNH.com
1 vote Thank Flag Link Wed Apr 6, 2011
Mr. Cool;
Q1 - Yes
Q2 - There are no standard fees. Fees and Commissions are negotiable.
.
PS. I'm quite sure that there are agents in your area that do not charge a transaction fee.
Web Reference: http://www.321property.com
1 vote Thank Flag Link Wed Apr 6, 2011
Our agency does not charge buyer fees, but we see some that do. LIke Joe said, if they are handling a transaction for you that does not have a traditional commission, they should be compensated. Some charge a fee no matter what, some charge if what they get from the seller is less than 3%. Whatever the case is, it should have been disclosed to you ahead of time, when you signed the buyer agreement at the latest.
1 vote Thank Flag Link Wed Apr 6, 2011
Most Buyer/Brokers are paid a commission based on a percentage of the sale which tradionally is paid from the proceeds from the sale which is paid by the seller, not the buyer. However it is not uncommon for the Buyer/Broker to have an agreement with the Buyer that says if services are rendered to assist the Buyer in a situation where the Seller does not pay a commission, then the Buyer will pay the Buyer/Broker either a commission or a flat fee (as might be the case with a for sale by owner property where the seller refuses to pay a commission). This simply protects the Buyer/Broker against doing a lot of research and finding a property and not getting compensated. In iny event, all this should have been spelled out in your Buyers/Broker Agreement prior to engaging with a specific property.

Joe Folsom
Realtor, Developer, Builder/Broker
1 vote Thank Flag Link Wed Apr 6, 2011
Does escrow company need a copy of the agreement before they issue a check to the broker? Do they valid the law if they issue a check just based on broker's demand without checking the contract and writtern agreement between buyer and broker?
Flag Sun Dec 22, 2013
Is there a buyers broker fee in the Cary / Wake Forest area in NC?
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.
Any thoughts?
0 votes Thank Flag Link Wed May 14, 2014
That fee is usually a flat rate fee. It shouldn't go up based on the price of the house.
However, that fee is sometimes higher if the house you buy is a more complicated transaction, such as a short sale or foreclosure.
0 votes Thank Flag Link Mon Dec 23, 2013
All fees are negotiable, if you feel the fe is un fair then don't sign for it or re-negoiate the fee with your agent. I'm sure he doesn't want to lose the deal over it.

Good Luck!
Web Reference: http://www.ajsocalteam.com
0 votes Thank Flag Link Fri Sep 30, 2011
Nevada law requires brokers to keep records for 7 years. The transaction fee covers some of the cost brokers incured. Fees are set by each broker. In some cases, both the buyer and seller pay.
0 votes Thank Flag Link Fri Sep 30, 2011
Transaction fees are a way for Broker companies to make more money and are not necessary and should be negotiable. There are plenty of companies (including Apex Realty of Alabama) that do not charge such a fee, and you should shop for a Realtor you are comfortable with, can trust, and doesn't charge a transaction fee.
0 votes Thank Flag Link Fri Sep 30, 2011
In California, any "extra" fees must be clearly spelled out in your written agreement with a brokerage. Those fees should also be discussed with you, just as commissions should be discussed with you prior to a listing agreement being signed. If the agent has a good explanation of what the fee being charged is for, you might agree with it. If there is no explanation, then it should not be charged!
0 votes Thank Flag Link Fri Sep 30, 2011
I was surprised myself when my brother was charged a $450.00 buyer rep fee and signed a one year buyer represetation agreement. The BRE is one thing which I utilize so I have some loyalty from a client, yet for charging a fee for this legal yes, ethical that's another question. Bottom line this is nothing more than a gas money fee which I don't condone or agree with.
0 votes Thank Flag Link Tue Sep 27, 2011
Always ask your Realtor if there is going to be a TC fee (Transaction Fee), and if so, what it will be? This is just one of many surprises that can come up, so ask lots of questions. Also, another fee that takes buyers by surprise is the Special Assessment Tax, which comes after your escrow closes. Ask your Realtor to help you in contacting your local tax board about this upcoming tax bill. A competent, ethical Agent will always prepare you for what's ahead. Hire a Realtor who comes highly recommended.
0 votes Thank Flag Link Tue Sep 27, 2011
You should have a representation letter with your agent/broker that spells out commissions. There shouldn't be any surprises.
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.
0 votes Thank Flag Link Tue Sep 27, 2011
Buyers and Sellers must understand that in every state there is a Real Estate Commission. If any buyer or any seller has any problem with a Real Estate agent or Broker they can voice their concerns to the Real Estate Commission in that state. Whether they feel they have or had been treated unfairly or just did not receive All copies of All documents during a transaction.

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.
0 votes Thank Flag Link Tue Sep 27, 2011
This fee is typically for paying someone to compile the paperwork, get all of the accurate signatures. The Buyer's agent can charge the fee to the Buyer if the Buyer agrees to it. Remember all things are negotiable. I doubt that your agent would not want to work with you if you told him you would not pay that fee. The majority of agents pay the fee themselves.
0 votes Thank Flag Link Mon Sep 26, 2011
We do not charge a transcation fee at my company. But that does not mean they are unethical. What would be unethical would be your agent not disclosing this to you at your first meeting. Be sure to always question the fees presented to you in any transaction. Have a great day Mr. Cool
0 votes Thank Flag Link Mon Sep 26, 2011
Hi Mr. Cool. I'm sorry you feel ripped off. Not all Brokers charge a brokers fee, and like the agents before me explained, your agent should have explained this fee to you up front. Many companies do however charge this fee and there is no set amount. As far as buying a house for a flat fee, even if you are paying cash for house or property, there will always be other fees associated with the purchase, mostly legal fees. Some taxes may have to be paid up front, But whatever fees there are, you should be brought aware of prior to closing. If you are a cash buyer, most of your fees should be minimal. My company dosen't charge this fee, and we have several nice affordable (all price ranges) invesment properties available in Cape Coral & Fort Myers as well as the surounding Lee County Florida area. Send me an email or call me if you would like more information about investing in our area.
0 votes Thank Flag Link Mon Sep 26, 2011
Transaction fee is like the Car buying DOC fees. Pure Profit.

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.
0 votes Thank Flag Link Mon Sep 26, 2011
When you are helping find and negotiate 3 bedroom houses selling around $70,000, the standard cvommission split will mean you might be working for nothing after all expenses. Why not give the agent a reward for finding a great deal.

David Cooper Foreclosure Specialist with 35 Years Investing Experience. *Free List of Low Priced Bargain Homes, call +1-702-499-7037 or clock website
0 votes Thank Flag Link Wed Aug 3, 2011
But the agent isn't getting it......the broker is
Flag Fri Oct 25, 2013
It is charged in our area but always disclosed upfront and part of the contract. It can be wavied if negociated upfront but it usually goes to the total package price aka lower rate than transaction fee is added, higher rate usually the agent will pay the fee. Good Luck
0 votes Thank Flag Link Wed Aug 3, 2011
Mr. Cool,

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.
0 votes Thank Flag Link Tue Aug 2, 2011
Mr. Cool,
Total BS!
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!
0 votes Thank Flag Link Sat Jul 30, 2011
What is the agents time and knowledge worth if he can get you a house worth $120,000 using comparative market analysis for $96,000 as a bank owned foreclosure? I would think a small transaction fee on a deal that saved me $24,000 would be a small price to pay to such an agent. I would offer bonuses to any buyers agent that can bring me below market deals all day long.

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
0 votes Thank Flag Link Wed Apr 20, 2011
Great way to put it Lauren .
0 votes Thank Flag Link Wed Apr 6, 2011
Hi, Mr Cool,

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
Web Reference: http://TellEllen.com
0 votes Thank Flag Link Wed Apr 6, 2011
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