Additional Real Estate Broker Fees?

[Beto]

Its becoming standard practice for most brokers, but $495 in my opinion is a bit on the high side.

[cheryjohns]

Originally Posted by desertsun41

No one mentioned the company who does this. I know who it is but won't tell either. Back in about 04 I noticed this rape extortion fee on my listing and I complained loudly, Finally the Listing agent said he will remove it as we were closing shortly. It was some time later I wondered if he just took it off his commission to make the deal happen. I won't use that company again bit I appreciate what he did.

Quite a few do it now. Yes, it did come from the agent in the end. The brokerage isn't going to lose that money. Like I said earlier, the reason they give is storage, which is almost nothing. It should come from the agent - they chose to stay with that broker.

[marksmu]

Why the agents/consumers permit the brokers to do this is beyond me....it just makes no sense. There are a plethora of brokerages and independent brokers out there. Why not just move to the ones who dont do it? Your customer will thank you.

[kaiden22]

For the record - our agent said it's no problem to remove the fee. I didn't have to threaten to walk or make demands, I simply requested and he honored it without question. That shows good integrity so I feel comfortable moving forward with his representation.

[cheryjohns]

Originally Posted by marksmu

Why the agents/consumers permit the brokers to do this is beyond me....it just makes no sense. There are a plethora of brokerages and independent brokers out there. Why not just move to the ones who dont do it? Your customer will thank you.

It depends. I like my broker because the advanced technology. I will eat the $100, rather than give the tech support. Oddly enough, it's the brokers that give you (the agent) the least that charge those high fees. My clients don't know about it, until at the very end - and only because I have to have them sign a form saying that it exists and I am paying. Why they have to sign is a mystery.

[dalparadise]

Originally Posted by kaiden22

Actually, yes. It specifically states that the real estate commission they are to receive is 3% and that we would be required to pay the difference if it's less than that. So we WOULD be paying them the extra .5%. I don't believe my reasoning is off at all - it's because of our selection that they are bonusing. We could just as easily decide to go with a resale or a different builder - they will get less commission and we will pay the $400. I would think the extra $3600 would be worth it so if our broker denies our request then we know to stay away from this firm in the future.

That does change things and I understand better where you are coming from. You didn't mention that you were on the hook for a minimum commission of 3%. You should know there's no standard for commission, so there's no reason to be upset if your Realtor holds up his end of the agreement you have made.

[predatorprey]

My brokerage charges $500 upfront for our services weather buyer or selling side, but is refundable if they close.

In a way it helps weed out clients who might not be serious.

[marksmu]

That's reasonable....there are a lot of lookers and people whose eyes are bigger than their wallet. So long as its refunded and disclosed up front I see no problem.