Home Buying in Las Vegas>Question Details

summerlin, Home Buyer in Las Vegas, NV

What is transaction fee? Does all realtors have this fee?

Asked by summerlin, Las Vegas, NV Thu Nov 18, 2010

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The "Transaction Fee" or "Real Estate Document Fee" or "Storage Fee" is a joke. This is a junk fee which Brokers have decided to pass on to their clients to cover their business expenses. Brokers are required to store written documentation of all real estate transactions for several years. This is required by the Nevada Real Estate Division and Brokers must comply per state law. Several years ago, Brokers decided to pass this business expense along to their clients. The document/transaction fee is typically charged by the Brokerage...not the Realtor.

Many Realtors are penalized if their client does not agree to pay the transaction fee, and end up paying for it out of their pockets (or risk facing disciplinary action by their Broker.)

In today's market, many real estate transactions are "Short Sales." Banks typically will NOT pay a transaction fee, for they understand that this fee is an "extra" fee being charged by the Broker in addition to the commission. As a short sale listing agent, our sellers are experiencing financial hardship, yet many Brokers still think it is reasonable to charge the document fee to a seller...(who is losing their home)

While many Real Estate Brokers are hurting in today's distressed housing market, we would NEVER charge a document fee or a transaction fee to a seller in distress. When a client is losing their home, they need help...not junk fees.
6 votes Thank Flag Link Thu Nov 18, 2010
One more point:

If it is acceptable for a Broker to pass along a business expense to a client, such as a transaction fee, then where exactly does this begin and end?

There are certian expenses which a Broker must pay...if they want to be a Broker. If a client is asked to pay for document storage (which Brokers must do per state law) should Brokers also be allowed to charge fees which cover other business expenses such as:

- Rent
- Copy machine fees
- Telephone Expense
- Fees to pay the admin staff, phone receptionist, etc.
- Utilities
- Fees to pay for the soap and toilet paper in the Brokers restrooms...

A seller is already paying a 6% commission. If this does not cover the expenses of the Broker, then it is recommended that the Broker either a) cut costs, or b) get more clients
5 votes Thank Flag Link Thu Nov 18, 2010
Get more clients or don't be a broker. I have my broker's license but choose to just stay as a Realtor. Because of the same issues you are having.
Flag Thu Mar 21, 2013
Nothing is anti-agent about protecting real estate consumers from junk real estate fees.
5 votes Thank Flag Link Thu Nov 18, 2010
I find it sad that someone posts a question looking for information and we end up with answers from realtors using words like shady, screwed, etc. No wonder we face such challenges in being recognized by the general public as professional and ethical.

Please agents, read your posts before confirming. No need to attack, blame, condemn, criticize. Just answer the question asked by the consumer. That is all they are asking from us - provide them information.

Thank you.

Patricia Jewett - Realtor
Chase International Real Estate
Reno, Nevada

http://renohomesforsale.listingbook.com

775-857-1225
Web Reference: http://teamjewett.com
4 votes Thank Flag Link Thu Nov 25, 2010
Rhonda,
It has nothing to do with being a moderator or not being one, or removing what I want removed...it is simply using common sense and providing our clients THE BEST CUSTOMER SERVICE. Not being greedy. Greed is a terrible thing.. I only have one job, one career and this is it...Love what I do and treat everyone they way I would like to be treated...with respect, honor and not being taken advantage of.
I was once that person who was not a realtor looking for my first home, and guess what? I got so screwed by my agent, and NEVER again, will I allow anyone do that nor will it ever happen to me. Because I decided to go into that field to learn for myself. I see you live in Vegas...so good luck to you.
4 votes Thank Flag Link Wed Nov 24, 2010
Liane,
Wether your company charges you that or not, as a professional no Realtor should charge the client that..PERIOD!!! Unprofessional and it's very tacky!! We get paid well and we should swallow few hundred dollars when is necessary to earn that clients trust and relationship.
4 votes Thank Flag Link Mon Nov 22, 2010
My company charges me, as a Realtor, a $100 transaction fee on every closing, and they suggest that we may pass this cost on to our clients. However I do not feel this is right when, in most cases, I am making 2.5%-3% on one side, and therefore I eat that $100 fee on every transaction and do not charge it to my clients. Be sure to ask if your Realtor charges one because I've seen some agents charge as much as $500 and say its for gas and expenses. That's just a cost of doing business in my book.

Liane Jamason, Realtor
Keller Williams Realty
813-486-4997

http://www.TampaRealEstateFinder.com
http://www.LianeJamason.com
Web Reference: http://www.LianeJamason.com
4 votes Thank Flag Link Mon Nov 22, 2010
Excuse me? Standard fee? That is price fixing, and is a violation of anti-trust law.

There cannot be a "standard fee" any more than there can be a "standard commission".

Wow, this is unbelievable. I can't believe what I'm reading here.
4 votes Thank Flag Link Thu Nov 18, 2010
When a homebuyer is asking a question, you answer the question with honesty. And tell them why, how, who, that is why we are here to do. Give them ALL the answers not hide the answers. Nothing nasty about what I said, just telling the truth. If you feel it was nasty or shady maybe you should look at yourself in the mirror and see maybe you are speaking to yourselves.
Yes people think most Realtors are shady and crooks. Face it, it's the truth. ANd people can't handle the truth. I can and I have accepted that. So should all you Realtors. Wether you are one or not. Accept it and deal with it. But make that client feel good and give them ALL the answers they need to know. TELL THE TRUTH. SPEAK THE TRUTH. Why do people get so defensive when you speak the truth? Get over it and let's help this Home buyer feel warm and welcomed.
3 votes Thank Flag Link Fri Nov 26, 2010
Average home prices in California are $600,000 or is it more like $800,000? Average home prices in Michigan are $40,000. So 3% commission in CA is very different from 3% in MI. You in CA probably can pay your broker the transaction fee from your commission without a second thought, and someone in MI, or TX or Alaska cannot afford to work for free. This is the truth.
Flag Fri Jan 17, 2014
I was just taking a break from cooking my turkey and thought I'd check in, Patricia Jewett your answer is refreshing. I too am atonished at the nasty remarks, you are absolutly right, why anyone would use those words is just sad, you deserve a huge thumbs up.....Happy Thanksgiving to all!
3 votes Thank Flag Link Thu Nov 25, 2010
Simple Tell them you are not paying that fee or any admin fee or any other fee. All fees are negotiable and They are already getting 3%+ from you. If you are going to pay above and beyond that they better have a damn good reason why, and "it our company policy" isn't a good reason.
3 votes Thank Flag Link Mon Nov 22, 2010
You need to run as far away from any Realtor who is charging you a transaction fee. I see you are in Vegas..allot of shadey stuff goes on in that city...so be careful and keep asking questions here before you do anything. I used to live in Vegas as a Mortgage banker, and I moved back home, because too many shady people. That is nonsense fee.
Good Luck
3 votes Thank Flag Link Mon Nov 22, 2010
Luckily there are Realtors in Vegas like the Myers Team that can give buyers there a customer-focused choice, and possibly restore a little of the lost faith toward the real estate business.
3 votes Thank Flag Link Thu Nov 18, 2010
Ms. Joan,

You are for franchise fee that take a greater portion of an agents commission (not considering the poor commission splits) but yet argue for a flat fee for 375 dollars, what an oxymoron.

Your argument is too broad and does not apply in Las Vegas. Our agents are getting their butts kicked everyday and working in the toughest market in the nation so $375 is justified.

I would "FIRE" a client that makes an issue over the fee and everyone else should do the same.

Real estate is so much becoming its step brother, the car business. The field needs to go the route of the attorneys and doctors immediately in my opinion.


Thanks.
3 votes Thank Flag Link Thu Nov 18, 2010
Mr. Summerlin,

Have you ever questioned the hourly rate of your attorney?

Real estate agents work under different compensation plans, therefore, fees vary depending on the brokerage they associate with etc.

For example, I work under the #1 real estate broker in Nevada that employs over 1500 agents and offers 100% compensation plan to seasoned and experience, a 100% compensation plans covers all upfront expenses our agents incur during and sometimes after your transaction closes. Other agencies pay their less experience agents (low production etc.) on a lower tier (60% of gross commission etc.) plush franchise fees, marketing fees and copy fees.

Every agent places a value to his or her work based on many factors so keep in mind that the bulk of the commission of not al comes from the seller side (seller paid closing cost etc.) which sometimes covers the transaction fee you pay.

From a micro economic view, you are paying a transaction fee while in most cases the seller is paying your closing cost (5000 vs 395).

Pay your agent what he is worth and if he is not worth it find someone else that warrants the nominal fee.

I charge our company transaction fee to the buyer 99% of times, the 1% is VA. Why? Because it takes a professional to undestand self worth and the value he or she offers to a transaction, hence, justifying a charge that would be otherwise be taken out of his earned commission.

My take on the subject differs from fellow agents on this thread but I just don't run a discount business.

Advise: if a fee is bothering you at this time, please consider interviewing other agents to find an agent where you feel you will get every penny out of the transaction fee etc.

All the best!
Web Reference: http://redrockliving.com
3 votes Thank Flag Link Thu Nov 18, 2010
From my perspective it's a fee that simply goes to the bottom line of the company (typically a large franchise firm) that charges it. There's no reason anyone should be charging it or clients paying it. It's nonsense and I'd ask anyone who charges it, "What do you do for this fee that you weren't doing a year or two ago before you started charging it?" It does not go to the agent, it simply an unjustified profit center for the firm. T the 2.5-3% commission +/- should be enough compensation. Most firms actually have lower advertising fees than ever as the smart ones gave up on print media such as newspapers years ago and if they haven’t that their cost of doing business and certainly not a new one.
2 votes Thank Flag Link Mon Nov 22, 2010
I don’t argue with buyers, I just move on. If they don’t respect my time I tell them to find another agent. On $50K sometimes even lower, the commission is only my gas money. Honestly, when I receive anything $70K less, I don’t even bother. No wonder why those buyers complain why agents don’t call back. I have a broker agreement with a min fee, if they don’t agree on the phone I sooner move on prospecting other leads that are willing to pay for my time and service. It is both ways.
2 votes Thank Flag Link Thu Nov 18, 2010
The insults and demeaning conversations are not representative of the professionalism that we are supposed to be projecting as agents.

Let's please stay on topic and not act like school kids.
Web Reference: http://www.jagsellslvre.com
2 votes Thank Flag Link Thu Nov 18, 2010
thanks mr vasquez. i just hope you are not trying to charge your clients an hourly rate for the time you spend on trulia as well...
2 votes Thank Flag Link Thu Nov 18, 2010
Hi Summerlin,

If you are not happy with the service, you can always fire an agent and look for an agent that will look after your best interests. I know a lot of agents will not pass that transaction fee to their client. That's nuts. We don't have a transaction fee and if we did, I wouldn't pass it to my clients.

Best regards,

Jes Sierra, B.Sc.
Realtor® 01772408
Century 21 Beachside
Chino Hills, CA
1 vote Thank Flag Link Fri Nov 26, 2010
Dear Summerlin,

You have received many good answers from many different agents, however, it comes down to this:

The transaction fee is not required and is 100% negotiable. It is probably NOT being charged to you by your Realtor...but their Broker instead. I would ask your Realtor to see if the Broker is willing to waive this fee. If the answer is no, then there are many Brokers out there who would LOVE to have your business in this distressed housing market.

Make an appointment with the real estate office branch manager and tell them that you are a qualified buyer who is ready to purchase a home in Summerlin. Additionally, let the manager know that you are willing to use their services contingent upon the Broker waiving the transaction/document fee. If the answer is no, then there are MANY reputable companies and agents in Las Vegas who will line up to help you.

Don't be "bamboozeled" by a smooth talking branch manager, who tries to explain the benefit of a transaction fee. There is zero benefit for you.
1 vote Thank Flag Link Fri Nov 19, 2010
@Jackie, How are you going to help summerlin, he's in Las Vegas and you're in WA....if you meant making a change to Connect Realty, he's a buyer...

I disagree with David here. Some of the largest and best brokerages do NOT charge a transaction fee. And I also disagree with the comment that it's "not very high-under $500." To most buyers and sellers that seems like a lot, especially if there truly is nothing that the broker is doing to earn that. Seriously, does the broker really do anything or does the agent do all of the work?
1 vote Thank Flag Link Fri Nov 19, 2010
"Each Market is Different" ... we have heard that slogan for years, not only are the homes different but so are the business policies.

If a REALTOR from one market does not participate or understand a particular policy or situation in another market, why must it be wrong or bad business or some other phrase. Just accept it as being different. If your curious just ask a question, without being rude or offensive.

If you choose to pay a transaction fee yourself then that is fine, there are plenty of other fees and cost that we have to pay for on our own. It is how you choose to run your business.

I am sure if we delve into each policy or practice of each agent and market, I am sure we can find alot of differences to debate. Lockboxes vs both agents having to be at a showing, title companies vs lawyers, licensee's who are able to write contracts vs those who cant ... it goes on and on ...

Wouldn't it be better to work together and learn from one another? None of us are experts.
Web Reference: http://www.jagsellslvre.com
1 vote Thank Flag Link Thu Nov 18, 2010
ok so are there anyone in this blog from las vegas, new mexico?
1 vote Thank Flag Link Thu Nov 18, 2010
Transaction fees are another way to generate money. Plain and simple. In fact, depending how they are charged, they may violate the Real Estate Settlement Procedures Act (RESPA). I am not an attorney (nor do I play one on tv...) and as such, can not state if the fees do or do not violate the act or the law. Please read the link below for more information.
1 vote Thank Flag Link Thu Nov 18, 2010
The original question was based in Las Vegas New Mexico ... Not Las Vegas, Nevada, or Florida, or New Jersey ... So it intrigues me why so many outside agents would respond and then go and behave in such a manner for a market place that they do not belong to ...

Why am I responding, you may ask ... becuase this behavior is exactly why the consumers do not trust us or respect us ...
1 vote Thank Flag Link Thu Nov 18, 2010
Dear Summerlin,
Clearly you have hit a nerve with some. Once again, you have to make a decision regarding a fee that an overwhelming majority of agents in the Las Vegas marketplace charge. Few don't charge it so you could spend the necessary time to find an experienced agent that doesn't charge it, just make sure it doesn't cost you more than $300 worth of your time or you have lost the value you sought.

As for Joan's example of a 50/50 split below with her broker in NJ. I personally have never seen a 50/50 split in las vegas. I would guarantee you that if an agent, in Las Vegas, agreed to do a split of 50/50 with their broker the broker would GLADLY waive the agents transaction fee and pay it themselves. However, i seriously doubt the agent could stay in business much less actually make a living in our current marketplace in Las Vegas. Hence that example of that agent not charging a transaction fee is not valid for our marketplace in Las Vegas.

Again you will find a few that do not charge the fee, just make sure you thoroughly interview the agent before you decide who your going to work with. I see a lot of contracts that come across my desk on my bank owned listings. I can't tell you how many inexperienced agents LOST the contract just simply because they didn't even know how to fill out the contract correctly or clearly. Hence, their client is the one that is harmed do to their agents lack of expertise.

It is not my job to train an agent on how to make their contract clear, if i have to second guess their offer than escrow is going to have a problem which puts me and my seller in a risky position that could end up in litigation. I of course am responsible for protecting my clients, so I would be reluctant to accept an incorrectly filled out offer without having the agent correct the mistakes. The only time that i feel it is worth my time to educated the buyer's agent is when i think their offer is better than the correctly filled out offers...then it is in the best interest of MY client that i do that.

Of course, i have seen poorly written offers from agents that charge transaction fees and that don't so my point is: do your due diligence now! Ask the questions that concern you so that you can make an informed decision. The fee that has been so hotly debated is just a small amount compared to the purchase so I would highly suggest that you focus on finding a qualified agent that you feel good about. If things go terribly wrong in the transaction, you want to know that your agent can keep it together if possible and if not that they can get you the full refund of your EMD without a court battle. Good negotiations skills, people skills, accurate and detailed communications, finesse, & experience… are all critical skill sets you should be looking for when selecting an agent. Can the job get done without all that… yes- But you should be prepared to deal with turbulence in your search.

Best of Luck. If you have any more questions you should know by now that you WILL get answers via Trulia.

Valerie Edwards, REALTOR
ABR, RRG, SRS, SFR, SRES, RSPS, GREEN, ATHOM
(702) 371-5533
INFO@AgentValerie.com
Premier Real Estate
1 vote Thank Flag Link Thu Nov 18, 2010
Mr.Vasquez,

I pay a 50/50 split with my broker. No franchise fees. No desk fees. My broker eats the monthly cost for each agent which amounts to less than $200/month.
I do pay RE/MAX but that is just a few hundred a year for our website and some tremendous resources which are the best I've seen. Great value for the money.

I know your market has suffered, perhaps more than most areas but my point is that buyers do not get more value for having to pay a transaction fee than if they don't. The value add is purely to the brokerage.
1 vote Thank Flag Link Thu Nov 18, 2010
Valerie:

Once again I raise the point I made earlier. A transaction fee is an add on, and it does not benefit real estate buyers. The real estate business was founded on the principle that the SELLER pays real estate commissions.

While I'm not located in Las Vegas, that does not disqualify me from commenting on transaction fees. We have brokerages that charge them in the Sarasota market as well.

I agree with Lebau, don't pay them if you are buyig real estate in Las Vegas or Sarasota or Wasilla, Alaska.
1 vote Thank Flag Link Thu Nov 18, 2010
dont pay them...they are hidden fees that add no value to the buyer or seller
1 vote Thank Flag Link Thu Nov 18, 2010
Before I answer the basic, question, no, all real estate companies do not have this fee, and you should NOT pay one, ever.

A transaction fee is an add-on, instituted by the major franchise brokerages like Coldwell Banker, Century 21, Re/Max, and the like, as an additional revenue stream in the face of shrinking profit margins and increasing costs in a challenging real estate market.

Transaction fees only go to the bottom line of the real estate company. They do not serve a purpose to the customer or to the real estate agent. In my opinion, transaction fees are junk fees. They are like "processing fees" at a car dealer, or on a mortgage.

As a real estate consumer, you should NOT be asked to pay this fee by your Realtor, although a good many try, using the line that "it's worth it to pay for excellent service". What usually happens is that Realtors eat this transaction fee by paying it to the real estate company out of their commission.

David Barr, Broker Associate
Sandals Realty
Twitter: @sarasta_homes
1 vote Thank Flag Link Thu Nov 18, 2010
The transaction fee is a fee that the brokerage charges to the agent for each & every transaction and it is charged to covers the cost of the E&O insurance & storage fees associated with each transaction. This fee can range normally from $250 to $400 however i have seen some as high as $900 (but this is rare) An agent should discuss this with you prior to any contract is written. Once a buyer decides to write up an offer which is 11 pages long you will be required to sign off on. You will note that on page 5, item H it will clearly state the transaction cost from the agent. If it is not in the contract the agent can't add it later. If they try to add it at escrow, all you have to say is that you didn't agree to it.

I typically waive the fee for the seller, if the home is over $200,000, since they are paying for the bulk of the transaction via the commission. You should know that on a typical transaction at the cost of $100K, the commission is normally $3000. but can, and is often lower with the bank owned properties and the sort sale properties. Sometimes it is as low as $2K. Most all agents have a split between them and their broker of anywhere between 60/40 and 80/20. Hence if you have a 60/40, the agents split would be $1800 MINUS the transaction fee. If their transaction fee is $300 than the agent would net only $1500 on a transaction they could have spent months on. Of course this net doesn't include the cost of being a realtor such as MLS fees, Realtor fees, Supra Key fees, license fee, gas & higher auto insurance fees.... Needless to say it is expensive to be a realtor.

Of course you could say that when the prices were high, agents were making some really good commissions. However, before the market exploded between 2002 & 2005, and after the bubble busted, the cost of homes have been relatively low. An agent would need to have an average of 30 transactions to just make approximately $40K and that doesn't account for the cost of doing business and income taxes. It is safe to assume that most agents do not do 30 transactions per year in Las Vegas. In fact if i remember correctly, the average agent only makes $24K year right now. Hence, you add up $300 x just 12 transactions a year that is $3600. It may not seem like a lot but when you consider $24K income to an agent, $3600 is approximately 15% of their income and every penny counts in the end.

I know that you as a buyer never wants to pay anymore than necessary in your purchase, but you should understand why most agents do charge it. It is not a fee that the agent just pulls out their hat just because they feel like it. It is a brokerage fee that is set for them from the broker, regardless of the purchase amount of the home they sold.

My office fee is $300 because that is a hard cost to me with every transaction. Again, i typically will waive it for the seller with a sale price over $200k. And since a lot of homes right now are below that price, i do charge it more often than not. Add in the fact that i personally am dealing with a lot of investors who are purchasing cash in North Las Vegas....I’m just thankful when the transaction is actually over $80K at times. Hence keep in mind YOUR individual purchase, if you are purchasing a $50K condo and it is a reduced commission to the agent, $300 may just be the thing that allows the agent to break even on your transaction. However, if you are purchasing a $300K or higher home, you may want to have a discussion with the agent about waiving the fee. Of course if you like the agent and feel as though they are the expert you want, you may find that the transaction fee is not so high after all. The important thing is that you KNOW what that fee is BEFORE you write an offer.

In the end, you have to know that what you are paying for is worth it. If you don't think the agent has the expertise you want and need than you should move on regardless of the transaction fee. I know that a lot of new agents don't charge it in hopes to get clients, however you also get a new agent that has very little experience. Often times, the lack of experience alone can cost you more than $300 in the transaction and at minimum, frustration and confusion throughout the transaction.

Also keep in mind, it is rarely wise to assume that advice provided by agents from outside the local market area is the best advice. There are vast differences from marketplace to marketplace in the nation. The east coast does things VERY different than we in Las Vegas. Clients from out of state are constantly surprised (pleasantly) to how different things are done here in Vegas. Clients alwasy make the final decisions in the transaction, but it is recommended that you make a fully informed decison. Hopefully this will help you to do just that.

Valerie Edwards,
ABR, RRG, GREEN, SRES, SRS, RSPS,SFR,ATHOM
Direct: (702) 371-5533
INFO@Agentvalerie.com
Premier Real Estate
1 vote Thank Flag Link Thu Nov 18, 2010
Marvin, I realize that there are different business models and if yours runs by allowing agents to keep more of their commission, that is great. I just don't think it should be put on the backs of the buyers, with such things as "transaction fees".

I do a 50/50 split with my broker. I pay no desk fees, no fees for office materials, etc. If my production increases, the split will change in my favor. If business improves for me, I will do just fine even with the 50/50 split. If I don't, then it is my choice to either stay in the business or seek employment elsewhere. If my brokerage, which is a RE/MAX but tiny by your standards, couldn't turn a profit without charging an extra fee to buyers, then my brokerage doesn't belong in this business.

I think the reason it irks me so much is because it reminds me of all the other nefarious fees in my life: credit card, phone bill, bank fees that when questioned, often end up suddenly not being all that important to the various companies that charge them except for the wonderful profit these often unquestioned fees generate.
1 vote Thank Flag Link Thu Nov 18, 2010
Our company requires one. They have to store your file for years in case of law suits, they have to back them up on cd and the transaction coordinator must do all the work on it and she needs to be paid too. It is definitely not to make up the difference of smaller commissions. At our company someone must pay for it and if the buyer doesn't then they deduct from our commissions.
1 vote Thank Flag Link Thu Nov 18, 2010
A transaction fee is a fee now charged by a number of real estate brokers, and agents are often passing this on to their clients. The broker and agent are required to review and keep all documents on file for a transaction for 5 years. The fee varies according to the agent's brokerage, and may or may not be passed on to the buyer.

Agents work very hard for their money and only get paid if and when the deal actually closes. They may spend several months with a buyer, show multiple properties, spend hours writing and negotiating multiple offers which may or may not be accepted and/or close. In order to cover their costs which they have to front (licensing, education, marketing, internet, phone time, computer time, etc.), they are passing some of the cost onto their clients by charging the transaction fee which takes an additional bite out the of the agents commission on to their client.

Discuss this with your agent.
1 vote Thank Flag Link Thu Nov 18, 2010
You will get many answers to this one from document storage to legal reviews etc. The fact of the matter is it is an added cost that is mostly not necessary! I left a company that charged doc fees of $125.00 and now upwards of $250 - $1,500.00 That fee is just to make up the difference of discounted or low commissions.

I have never charged a doc fee in this company and if I have my way never will. It is always negotiable.

Dave Rubinger
Broker
D and R Realty
(702) 683-9688
1 vote Thank Flag Link Thu Nov 18, 2010
Honest professionals do not "hide" the fees, they let the client know exactly what they are paying. How could you hide it anyway, its on the final HUD statement and the client has to sign .
0 votes Thank Flag Link Wed Jan 18, 2012
HomebuyerNC

Is this a bank foreclosure?

I'm starting to see a creeping in of buyer fees (including transaction fee, processing fee, etc) being charged on these, perhaps as a way to make back referral fees the listing agents have to pay to the REO companies?

You can ask your agent what it's for; if you're working with the listing agent, ask the listing agent.

You can always ask for it to be waived; it might or it might not work.

In some states, fees on top of commission amounts are illegal; in others, they are legal as long as they are disclosed to the parties, and in others, they are treated as completely different from commission and permissable.

If you're looking to pursue it further, you might be able to check with your state licensing board to determine if they allow transaction fees in NC. Best wishes with your new home purchase!
0 votes Thank Flag Link Mon Jan 31, 2011
I'm a looking to BUY a $200,000 house in NC. I just noticed that the realtor has included a transaction fee of $395 payable by me in the offer. So i should just ask him to remove the fee and i'm not paying it? I wonder if he is charging the seller the same fee.
0 votes Thank Flag Link Mon Jan 31, 2011
I think this is a question that should be answered by an Agent who knows Nevada real estate law and does business in this state. This fee may be paid by either buyer and/or seller.
0 votes Thank Flag Link Tue Dec 7, 2010
My brokerage charges me a transaction fee in the state of Oregon.

However, this is paid by me out of my commission check. This must be different state to state.

I'm assuming the Realtor can pass this fee onto to you in Nevada? If they are doing an exceptional job, it might just be the cost of selling your home these days. It seems like everything costs more...

I'd like to hear from more Nevada Agents to learn more about this fee and what the common practice is on how they deal this extra expense.

Just curious,
0 votes Thank Flag Link Mon Nov 29, 2010
A transaction fee as you can see is basically an additional charge on top of the commission some Realtors charge. Not all Realtors have that fee.
0 votes Thank Flag Link Mon Nov 29, 2010
It used to be that a listing broker would negotiate a fee for the entire service to list and sell your house. However, with the advent of different services and different aspects of handling the transaction, many firms started to see what lenders do, e.g., charge fees for many sundry services, apart from the typical point(s), and wound up emulating these practices. The DRE has now made an evaluation of such practices and requires that any such "extra fees" be warranted by actual services, not just the agent's creativity to generating additional funds. Many of the "transaction fees" in practice serve to pay someone handling some clerical aspect of the transaction, e.g., a transaction coordinator, a processor of sorts, a translator, etc., but if you find that this is something happening without proper explication or justification, then you ought to question this and not allow it unless you agreed to it from the onset.
0 votes Thank Flag Link Sat Nov 27, 2010
Jes...Glad we have some normal people here on the site that gets it.
0 votes Thank Flag Link Sat Nov 27, 2010
Hi Summerlin:

A transaction fee = fee associated with a transaction.

Either the full cost is passed on to you or partial.

Surely not all Realtors will pass this along to you.

The question is if an Agent who is passing this onto you is doing a great job, getting you the right property at the right price why would you not pay it.

Maybe you should do a cost benefit analysis.

Good luck.
Perry
Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Fri Nov 26, 2010
I agree Patrica , according to the site moderator it was not ok for me to call her out on her professionalism but it is ok for her to call us agents in NV "shady". It makes me wonder about the site because if yu do not live here and do business here how could you know if what we do is shady.

It is common in our state. It is accepted in this state . In every state there are different ways of doing this buisiness. How come NY is not shady because they have to hire attorneys to close and those fees are higher than NV without usin Attorneys.
Who do you think you're being honest with Nazilla and just exactly what do you think you're being honest about?
Are you the smartest and best Realtor in the world and you know the "truth" about everything ? I guess everyones answers that dont agree with you're answers should be dismissed and we should all be referred to as shady. Maybe the moderator doesn't see anything wrong with that but I assure you there is a lot wrong with that. If the board of Realtors would consider putting other Realtors down as unethical , I bet they would consider this to right along with it. Have this one removed too.
0 votes Thank Flag Link Fri Nov 26, 2010
I don't charge a transaction fee. Most of the homes in the SF bay area are 600K plus and I do quite well with my commission split. One of the biggest reasons I don't and won't charge a "transaction fee" is because the title offices have so many fees that the buyers/sellers must pay. If possible I will sometimes pick up some of the expenses my buyers have.
0 votes Thank Flag Link Wed Nov 24, 2010
I provide my clients with excellent customer service and Im a great Realtor in Las Vegas and all I was simply saying to you its unprofessional and tacky of you to call us shady!! Are your title companies shady , they have all kinds of fees like courier, over night, wire, re conveyance fees, I could keep going , Anyway this thread is so dead.....even the original poster is not reading it anymore.
0 votes Thank Flag Link Wed Nov 24, 2010
Some agents do charge a transaction fee, but I do not, because my company does not charge it to me, so therefore I do not have to pass that along to my clients. This is true in North Carolina.
0 votes Thank Flag Link Tue Nov 23, 2010
A transaction fee is a fee that a real estate agent normally pays their broker. This fee should not be passed along to the clients. I am not sure about the state laws in NV but in CA we don't charge our clients any fees outside of the commission that we earn.
0 votes Thank Flag Link Tue Nov 23, 2010
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