We ran into a similar situation a number of years ago, before I was licensed. The agent sprang the fee on us as we were signing the offer. We said we wouldn't pay it. The agent wagged his finger at us and said he'd waive the fee the first time, but if we ever wanted to do business with him again, we'd have to pay it.
It was a perfect plan! We went on to do eight more transactions without him.
Hope this helps understand the fee a little better.
To some it all up for you here are the highlights.
-transaction fees are very common in Vegas right now.
-not every brokerage charges a brokerage fee (most do but not all, and some time cheaper doesn't mean better)
-sometimes the transaction fee is a set amount for every deal that goes through that brokerage.
-sometimes the transaction fee is on a sliding scale depending on the purchase price.
-sometimes agents can waive the transaction fee or pay it out of their own commissions.
-sometimes you can get a discount on the transaction fee if you do several deals through the same brokerage.
-there is no "standard" transaction fee
So as you can see there are a lot of variables and each brokerage has their own policies in regard to transaction fees, but I would not be alarmed by a $225 transaction fee.
I hope this is helpful. Please let me know if there is anything else I can help you with.
I look forward to hearing from you!
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It sounds like you do not feel the agent informed you about this fee when you chose him. If this true, check your written agreement with the agent. If it is not outlined there (or, for that matter, if you have no written agreement), then simply inform the agent and your closing company that you absolutely will not pay a fee manufactured out of thin air at the last minute.
Berkshire Hathaway HomeServices
Real Estate of the Rockies.
I hope you can tell that most agents tried to answer your question respectfully. You were smart to ask online and hopefully you got the issue resolved with your agent who freely admitted he forgot to tell you in advance. Mistakes happen, and it can be easy to forget something if you are particularly excited about a home you want a client to see. (The good agents can get very passionate about locating a great home for a client!) It sounds like he was honest with you about his error.
Local customs are different in every area, but it looks like the additional fees are very common across the country now. Though you can see by some of the reactions that this is a sore point for many agents? Most of us hate this extra charge - remember the agents don't get it, it goes straight to the brokerage. And we have to pay it if the client doesn't. (Though I understand why the brokerages charge it - costs have gone up over the past five years while revenues have plummeted.)
Just as a matter of interest, I do have to correct RockinRealtor. Even though many of us in the industry call this a transaction fee ourselves, the Nevada Real Estate Division has officially determined that this fee is, in fact, an additional commission, no matter what it is used for. Many agents in Nevada don't even realize it. I can't speak to the policy in other states, though.
I have explained it in my blog post that I have linked in web reference below.
All the best to you, Julie
Personally, I don't take kindly to surprise fees added after the fact - no matter what the service is I am paying for.
Keep in mind that usually these fees are a company policy, and if the buyer or seller does not pay it, the agent has to. The agent is not usually receiving any portion of this fee. If your agent is good, it is usually money well spent to get the best ones!
Hope this helps!
Prudential Americana Group Realtors
The Tonnesen Team - with over 30 years of experience helping families call Las Vegas "home!"
In Nevada, a Broker fee is typical. This is a fee that the is the profit for working with an agent in the company. Consider it the cost of acquisition of the property. As a rental property, the fee is deductible to you and may lower your tax liability.
By NV state law, the documentation for your transaction must be kept for at least 5 years. I am sure it is similar in all states. The storage portion of the fee pays for the cost of the storage and retrieval. We call it a storage and documentation fee. Due to RESPA regulations, if a Broker charges the fee, it has to be collected on every transaction. Sometimes the Client will pay, sometimes the Agent will pay, it will be paid by someone.
Did you complain about the costs that your lender charges and tell them you will not pay them?
Do you complain about the shop fee or recycle fee to have your car repaired?
Do you complain about the table fee when you visit a restaurant?
Do you complain about the fee to visit your doctor?
I hope you get the point by now?
These fees are to help keep us in business. We have costs just like everyone. The people that use our services, pay the costs to keep us in business.
As a simple exercise, add up the total number of hours that the Agent has been involved in working with you. Include travel time, research time, document signing time, after closing time completing the documents and getting keys. Look to see how many dollars they received. Divide the $$/hours to get the hourly wage.
Please report back and let us know what the you paid the hourly wage of the Agent you worked with. Compare that wage with what it takes to get your car repaired ($125/hour) see a doctor ($175 for 1/4 of an hour), call a repairman to fix your plumbing ($90/hour), talk to your attorney ($250/hour) , or any other professional assistance.
Don't look at it as just another expense. The Broker/Agent you are working with did their job in locating you a property meeting your needs. The Broker/Agent was also instrumental in getting the offer accepted. Your Agent will also go with you when you go to closing to review the documents before you sign them to be sure they are correct.
I have spotted incorrect addresses, parcel numbers, sale price incorrect, spelling of names, and lots more issues in documents that I review for my Client. I go to every signing with my clients. You should expect your Agent to do the same.
The Broker/Agent deserves to be paid by you and not stiffed out of the Broker fee.
If a Broker is paying to train, providing insurance, providing an office, fax, computers, office staff, etc., to the Agent, the Broker has to make a profit. This is the same as a delivery fee or dealership fee, or prep fee, when purchasing a new auto. A portion of the Broker fee will be disclosed as the profit portion.
A Broker fee should be disclosed at the time of meeting. This is a cost of doing business with the Broker. The consumer (Buyer/Seller) should be provided the choice weather the cost to do business with the broker is warranted.
A Broker fee is not allowed on some transactions such as when the Buyer is getting a VA loan. Someone else pays it and not the Buyer.
Typically, there is a disclosure signed when the contract is is signed outlining the fee. If the Agent forgot, then you did not sign it, and you are not responsible for the fee. If you signed the disclosure, then shame on you for not reading it. Pay the fee.
I agree with the past comments. If the Agent forgot to mention it, I suggest you forget to pay it at closing. End of story.
Have a great weekend. I wish you well in being a landlord like myself.
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When I worked at CB, they charged a $199 fee. Most agents ate that fee themselves because they felt uncomfortable charging their clients for it.
I'd tell him you're not paying it, and he can pay for it out of his commission!
Realty Executives Of Nevada
Many agents do charge a fee to their buyers. I do not charge my buyers a transaction fee - I pay this $295 on their behalf. The seller pays a commission to both agents, which is in my opinion a fair amount of money. I don't see a reason to pass on a fee to the buyer.
For those of you out there still looking for an agent, please consider my services.
Angela Brasser, ABR, CRS
Prominent Realty Group, LLC
(702) 460-2515 Talk/Text
This is happening all over. Many brokerage offices are charging these rediculous fees to Buyers when they are being compensated by the Owner of the property through the Owner's Listing Broker. As a Broker myself, I don't think it's right to do this. What the agent is trying to do is offset his own office fees (having you pay his office fees for him). My suggestion to you is to tell him you won't pay this fee. If the agent says there is no getting around it. Tell him you will purchase the property with another Broker then. He will shut his mouth so fast to get the deal closed.
Side Note: If the Broker has an Exclusive with you and he has disclosed this fee at the time of the Exclusive being signed, then the fees previously disclosed would be valid.
Adam Weintraub - Broker / Premier Estates Director
Residential & Commercial Real Estate
I wish you luck.
Phil Scheinman, ABR, GRI, E-PRO
Broker * Sales Agent * Realtor
2831 St. Rose ParkwaySte. 100
Las Vegas, NV 89074
Working with Buyers to Find Awesome Deals Since 1994
phone 1.888.616.6226 or http://www.lasvegaswinner.org
A commission is usually a percentage of the sale paid to a buyer or sellers agent agreed to by the seller and the agent at the time of the listing . A cooperative compensation is offered through the multiple listing service for a buyers agent who brings a buyer . Any commission that an agent warns are paid through the broker of the real estae office . The agent is then paid their share of the commission .
Each broker is different in the administrative fees they charge .
Please do not confuse this fee or call it an extra commission . There are costs involved in running a business . Many brokerages have transaction coordinators who make sure that the files are in order and all paper work is in compliance . This helps a client to save costly litigation issues . So iid say a penny of prevention is worth a pound of cure. It's the cost if doing business . I do agree that all fees need to be disclosed prior to working with the agent . But I'm gonna wager you signed something and just forgot about it . It happens look over your paperwork .
The part that needs explanation is the "just Announced" part. Were you already in contract? Did the agent not disclose the transaction fee to you in advance?
If not then I would venture to guess if the rules of disclosure are the same as in Nevada then a nice sit down with his broker is in order. FYI - If you do not pay the transaction fee then the realtor does here in Nevada. When our market declined rapidly in 2008 passing on the transaction fees to the client became much more common in Las Vegas, especially when the transaction fee became 10-20% of the agents commission. Now that things are climbing back up many agents are still keeping with the recent tradition of charging the client the transaction fee. Either way, it must be disclosed and approved by the client in the state of Nevada. You will have to check with the Brokers in FL for the most accurate answer.
Good luck on your duplex.
Phil Scheinman, ABR, GRI, E-PRO
Broker * Sales Agent * Realtor
2831 St. Rose ParkwaySte. 100
Las Vegas, NV 89074