Rent vs Buy in 21093>Question Details

Rocky123, Home Buyer in Miramar, FL

Is it okay for a a real estate broker to charge a application fee of 500.00 ?

Asked by Rocky123, Miramar, FL Fri Sep 30, 2011

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9
Thanks everyone! Have a great wonderful bless weekend.
0 votes Thank Flag Link Sat Oct 1, 2011
That seems very high, there is probably a better route to take. Shop the price around to other brokers.
0 votes Thank Flag Link Fri Sep 30, 2011
My broker charges a Flat Fee of $335. $500 seems very high so maybe try calling some other brokers in the area to see what they charge. I often will pay the fee for my clients, especially first time home buyers.
0 votes Thank Flag Link Fri Sep 30, 2011
and this is not an agent but the broker.
0 votes Thank Flag Link Fri Sep 30, 2011
I'm not trying to rent but to buy a house. He's charging me administrating processing fee .5 per cent to buyers.
0 votes Thank Flag Link Fri Sep 30, 2011
As others have stated, depends on what it is for AND what you are attempting to accomplish. Please add more information. Are you applying to rent an apartment?
0 votes Thank Flag Link Fri Sep 30, 2011
What is the application fee for? As a Maryland Realtor I have never charged an "application" fee to a buyer or seller. Lenders usually charge an application fee and you may pay a fee to rent a property but neither of these fees go to the agent. Use caution and make sure you know exactly what you are being charged before you signe anything to make sure you are not being taken advantage of.
0 votes Thank Flag Link Fri Sep 30, 2011
Rocky123,

Application fees are normal charges when applying for a rental property in Maryland. These broker fees, typically averaging $35-60 per adult applicant, cover the cost of the broker's leasing department to pay for services such as credit reports and application processing, including verification of employer, income, and landlord references. I would recommend asking the Broker what this application fee is used for and what happens to these application monies if your application is accepted or more importantly, rejected. You can always request to speak directly to an office manager too. Based on this, you should decide whether it's worth it to you to apply for this rental. Good luck!
0 votes Thank Flag Link Fri Sep 30, 2011
If this is an application fee for a rental home that is outrageous. I'd walk away from that one. If it is an administative fee on a purchase I'm not a proponent of those and don't charge one but many agents due. Ususally this would be under $350.
0 votes Thank Flag Link Fri Sep 30, 2011
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