Home Selling in Miami>Question Details

Andreina Rod…, Renter in Aventura, FL

I am selling my condo in Florida. The realtor agreed to 5% comission but in the contract, I see that it adds 5% at closing $295. Is that ok?

Asked by Andreina Rodriguez, Aventura, FL Thu Oct 17, 2013

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Any fees that broker will charge you should be disclosed. What the agent means (if I understood properly intention of your question), that this fee and the commission will be paid at the time of closing. If the property won't be sold and no closing takes place, broker won't be compensated any of these fees.
1 vote Thank Flag Link Thu Oct 17, 2013
It is only OK, if it is OK with you, the Realtor and the Seller/Landlord come together to an agreement to sell or lease, the terms including commission and other fees must be accepted by both parties.
1 vote Thank Flag Link Fri Oct 18, 2013
Hello Andreina,

If you are not 100% clear on the fees being charged, you MUST have a face to face with your relator and ask for clarity.

All fees need to be in writing, clear, and agreed to by both parties.


I am sure your realtor values you and your business, and he/she will clear this up for you.


Best of luck to you!

Kawain Payne, Realtor
1 vote Thank Flag Link Fri Oct 18, 2013
Thanks!
Flag Sat Oct 19, 2013
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PROFESSIONAL FEE? So that's what realtors are now calling it?

5% commission on a 500k home is $25,000 ....and then PLUS an extra $295 Professional Fee too?

Any one up to a real estate commission discussion to enlighten me, a FLORIDA MOTGAGE BROKER, as to exactly what a Professional Fee entails?

Some one, anyone? http://www.youtube.com/watch?v=f4zyjLyBp64 anyone?

----
1 vote Thank Flag Link Fri Oct 18, 2013
....and 2.5% commission on a $70,000 property is $1,750.00. On your example I am pretty sure the Broker or agent is willing to "wave".
Flag Sun Nov 3, 2013
no one
Flag Fri Oct 18, 2013
Sounds like there was a commission of 5% and a PROFESSIONAL FEE of $295. All paid at closing and should be listed on your HUD statement prior to closing. You had to of signed an agreement stating these charges. Sounds like your agent failed to explain what exactly the charges are for!!

Thanks in advance and make it a great day

SHERI DAVIS
954 821 9569
1 vote Thank Flag Link Fri Oct 18, 2013
Dear Andreina, it is always very difficult for us here via Trulia to give you good advice without seeing the
actual listing agreement, because there are many terms and stipulations, and each and every listing agreement could be slightly different....
I personally do not understand exactly what you are saying above

Are you saying that the total commission due at the closing table for all commissions is 5 % on the
sale price, ok and it adds what at closing another 295 $ ..... I am not sure, but it must say at one point
in your agreement that the 5 % agreed upon commission based on the final sale price is due by the seller at the closing table, normal, if there is another amount of 295 $ added in the listing agreement
read the agreement carefully as it will say what this amount is for....

But I am not sure I did get your information exactly right, the above is what I am familiar with and seems
that it could be that, you can always sit down with your listing agent, and ASK for an explanation,
usually a good idea to do that before signing, so that you do understand exactly what it is that you
are signing and not reading it after you signed.... Ask your agent first for an explanation and see
if you understand it right and if you do agree with it....

Sincerely yours,
Edith YourRealtor4Life & Chicago and Northern Illinois Expert

Working always in the very BEST interest of her clients, Buyers, Sellers and Investors alike....
And always with a SMILE 
Covering for @Properties the city of Chicago, all N and NW suburbs, the fine homes on the
North Shore, and many of the W and SW suburbs, and with her trusted Partner Agents all of
the US and worldwide properties. Edith speaks French, German, some Spanish and other.....
@Properties Brokerage, 30 Green Bay Road, Winnetka, Illinois 60093
EdithSellsHomes@gmail.com
Check out my website at htttp://tinyurl.com/YourRealtor4Life
HAVE THE MOST WONDERFUL DAY :)
1 vote Thank Flag Link Fri Oct 18, 2013
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Personally, I'd say it depends on the sales/list price.

If its borderline low priced, almost not worth a realtor's time to list and help sell, then yes, the $295 is in line.

However, if its over 150k, then I'd demand it be removed.

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1 vote Thank Flag Link Fri Oct 18, 2013
Contrary to popular belief, commission fees are negotiable. Many brokers typically charge 6%, but it appears that you negotiated your fee to 5%. The $295, as noted by other realtors, is a transaction fee, which must be disclosed to sellers or buyers by the realtor before closing.

Transaction fees also vary from brokerage to brokerage. Today, $295 is a relatively low transaction fee; a number of brokers ask for up to $495 or more.

Marc Jablon, the Jablon Team
Re/Max Complete Solutions
JablonTeam@gmail.com
561-213-6139
http://www.JablonTeam.com
1 vote Thank Flag Link Thu Oct 17, 2013
It is more than OK since the standard commission is 6% + the brokerage fee
1 vote Thank Flag Link Thu Oct 17, 2013
Your agreed upon commission will be 5% . The $295 fee is in some cases, is an additional brokers fee to cover costs associated with your file. This is charged by the brokerage firm.
1 vote Thank Flag Link Thu Oct 17, 2013
Thanks for clearing this up for me.
I understand now that what it really means is that the commission will be charged at closing plus the $295.
I thought it meant that they wanted another 5% at closing
Flag Thu Oct 17, 2013
What does it mean "adds 5% at closing $295"?

They may have a $295 transaction fee the broker charges. However I'm not sure what you mean by adding 5% at closing. We only get paid at closing so that charge isn't added on, it is deducted from your proceeds.
1 vote Thank Flag Link Thu Oct 17, 2013
The $295 is an administrative fee in my office. By law all document have to be stored for 5 years. The charge is for storing documents.
Flag Thu Jan 9, 2014
The $295. is the processing fee that that realtor is charging. Usually this is a fee that some brokers charge their agents and these agents charge client at closing. This additional fees should be disclosed your listing agreement and the property wording should be "additional commission."
0 votes Thank Flag Link Mon Oct 21, 2013
It's pretty simple, the agent commission is 5% of the selling price, paid at the closing table.
0 votes Thank Flag Link Fri Oct 18, 2013
Thanks for clearing this up for me.
I understand now that what it really means is that the commission will be charged at closing plus the $295.
I thought it meant that they wanted another 5% at closing
0 votes Thank Flag Link Thu Oct 17, 2013
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