The MD agents are correct below regarding the $345 and 2.5%, which is normally the starting commission % for an agent representing a buyer. The seller typically pays the commission, unless it was a for sale by owner where the owner refuses to pay a REALTOR commission. Is this the case? If so, then yes you as the buyer would be responsible for paying the agent's fees. I hope this helps. Congratulations on finding your house!
Standard of Practice 16-16
REALTORSÂ®, acting as subagents or buyer/tenant representatives or brokers, shall not use the terms of an offer to purchase/lease to attempt to modify the listing brokerâ€™s offer of compensation to subagents or buyer/tenant representatives or brokers nor make the submission of an executed offer to purchase/lease contingent on the listing brokerâ€™s agreement to modify the offer of compensation.
Keller Williams Realty
Now is this agent not explaining the full situation to you???? He or she should and if not yet then
very soon..... Obviously this agent you trust, negotiated a price for you right? So now the question is
is the property you are buying listed with another brokerage and is on the Multiple listing service?
The only way that YOU the buyer should be responsible for the 2.5 % which sounds like a commission percentage and other fee, is if the Seller is selling by owner and there is no other
Realtor involved.... Then the buyers agent in order to get paid for his or her services will want to be
paid by the buyer, but that should have been decided and agreed upon with you, preferably in
Try to get your answers from your Realtor, I am sure there is a good explanation for it.
Hope this helps...
Most Sincerely yours,
Edith YourRealtor4Life and your Chicago and Northern Illinois and RElocation Expert
Working always in the very BEST interest of her clients at @Properties North Shore
Edith speaks French, German, Spanish & more
Get to know Edith and her Service her website is
1. Is this a FSBO? Is that why you are responsible for commission?
2. Is this a short sale and the buyers agent is trying to guarantee that they will at least receive 2.5% commission on the transaction?
Please note that all brokerage forms in MD show that the fees are being for by the buyer. However there is a space that allows for the compensation to the buyers agent to come from the listing broker- hence a cooperating agent. The $345 is a admin fee and invariably pretty standard in the DMV area and some are as much as $500.00. I really think you need to have a conversation with your buyers agent and get him/her to fully explain all docs to you so that you feel comfortable.
All the Best!
The $345 fee is a garbage fee. A revenue augmentation strategy imposed by the broker. They say it's for storage and records keeping and other 'strategic' purposes. It IS a garbage fee with a fabricated purpose!
Some states, such as Florida, allow an MLS fee to be imposed also. The MLS FEE is ALSO is a garbage fee. In Florida, this fee is alleged to offset advertising costs of the listing agent and are passed to the agent representing the buyer. The buyer agent, rather than pay the fee from their compensation, pass it forward to the buyer. This is solely a revenue augmentation strategy originating at the listing agent side.
The agent representing the buyer, if they do the 'right' thing, has both THEIR broker and the predatory agent on the opposite side of the transaction with their hands deep into the pockets of your agent. Your agent may choose to pay these fees on your behalf or allow you to share in the pain. With some franchises, the agent has no choice but to charge YOU!
However, a 2.5% MLS fee must be a typo on your part or the transaction in which you are engaged is not a traditional sale. 2.5% MLS fee passed to the buyer in a traditional sale would certainly be OUTRAGEOUS! Please let us know if you pay this fee. That would be a HUGE revenue augmentation strategy that could REALLY catch on.
Of course you did all the work. Clearly you don't have a firm grasp on what your agent does. Finding the house on just step one. The 300 steps that follow will determine if you ever move in. But these are the steps executed at midnight and you only know about them when one is missed. When all are completed....a professional makes it look EZ....and the buyer/seller says, "I did all the work!" Sheesh.
Without question, as applied in the state of Florida...they are ALL garbage fees. And even in Florida, garbage has become a standard practice. But revenue augmentation simply sound better.
Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
Please do ask your agent about the 2.5% broker commission because you may have misinterpreted what he/she said. There is a form in the contract where that is indicated, BUT, only if the seller doesn't pay the commission. Again, have your agent explain anything you don't understand.