Lastly, those listing agents using "Subject to 3rd Party Approval" are to be avoided!! They are the same schmucks who are charging the aditional fees to the Seller. It is one way to avoid the selling agens from noting it is actually a "Short-Sale" as most MLS sysems have this as a recognizeable term in a search.
Even if the bank for some odd reason gets you and or your agent to believe that you have to pay, (Deduct that amount from your offer) *Which is the next best thing to them actually paying. Elizabeth has no idea what she is talking about (Sorry Elizabeth) but the listing agreemeng is between the seller and the listing company NOT the buyer and seller. Putting any language in a purchase agreement for that reason carries not legal or contractual weight.
BOB on the other hand brings up an entirely different factor that you did not ask about but is correct. There are compliance fees all around. That is mainly because there is more work than the standard listing for a pre-foreclosure/foreclosure. That is why you are beginning to see listing agents charge these fees. What is the reasoning behind a "Buyers Agency Compliance fee" I don't know. It almost seems as if they want to gouge the buyer for a fee that they think they can get away with because their fee has already come from the seller and a buyer may not notice it or complain about it. ? . ?
Typically the bank pays. If it is listed that is the case. I would carefully review the bank's addendums with your Realtor so that you understand everything, especially any fees or costs to you.
The brokerage fee might be something like a few hundred dollars. I am seeing that more often right now.
The 3rd party is the bank/investors who actually own the lien on the property. They pay the agent's commissions. The brokerage fee is probably the listing agent and/or listing broker trying to make a few extra dollars on a transaction, usually a few hundred dollars. Remember, everything is negotiable.
I always offer my buyers the option to put in the purchase agreement that the seller (ultimately the bank) is to pay the compliance fee because it is usually the listing agent asking for it not the bank in fact the bank may not even know their agent is charging the buyer a fee. Usually the buyer wants the home bad enough to pay the fee especially in a multi offer situation. One client said to me they felt like it was a bribe to make sure the agent presented the offer. I told them it would be an ethics violation not to present all offers. Some agents are getting really greedy and are charging around $300 and I've had buyers opt not to view those homes.
So Carol you have those options; ask the bank to pay the fee as a concession, choose not to see homes with fee's or if you want the home bite the bullet and pay it.
I call "Short-Sales" my pro-bono work or the payback for all the great times I've had in real estate. I belive the consumer needs all the protection they can get now adays!