I have a question about a Buyer Representation Agreement with my real estate agent?
Posted on May 1st, 2010 in Renting & Real Estate | 6 Comments »
CSvenM C asked:
I have found a real estate agent and this is NOT my first home purchase. Something in the contract sounded funny and I want to hear what you guys think. It states: "$425.00 transaction fee paid directly to Keller Williams real estate upon closing." He said that its a "perk" of being with Keller Williams. And that I would pay it at closing and the title company would send Keller Williams a check. What do you guys this about this?
Fsbos In Sacramento
I have found a real estate agent and this is NOT my first home purchase. Something in the contract sounded funny and I want to hear what you guys think. It states: "$425.00 transaction fee paid directly to Keller Williams real estate upon closing." He said that its a "perk" of being with Keller Williams. And that I would pay it at closing and the title company would send Keller Williams a check. What do you guys this about this?
Fsbos In Sacramento
6 Responses
Playa Del Rey Real Estate
That is their fee buried in the fine print. Accept or decline before signing the agreement.
Microdermabrasion Silkpeel
Becoming very common with some of the larger agencies. Most call it an “admin fee”. Crazy!! It’s just one of those “extras”. I personally would refuse to sign the agreement with that on there. They will add it to your loan & you will pay interest on it for 30 years. It’s his perk- not yours. I bet they will waive it if you tell him you will find another agent if they don’t. Also- if you are getting an FHA loan- FHA does not allow you to pay it so they have to waive it. Good luck!
Playa Del Rey Real Estate
Excellent answer beverly! I would as she said try to have them remove that b/c keller williams is already getting a commission…good reading hun!
Miami Fl Real Estate Listings
I would see if Century-21 or another national or local real estate company has the same perk. If you find others that don’t then you have to decide if the perk is worth the name of Keller Williams.
Personally the commission is sufficient. If you are selling a house in California for $600,000 and you don’t or can not negotiate the “NORMAL” 6% commission down you are paying this real estate agent a total of $36,000 for the sale of your house.
Now if the want to argue about a mere $425 transaction fee perhaps you should find another person to represent you.
All fees, points and compensation is negotiable for real estate agents so tell this agent you would like to eliminate this “PERK”
I hope this has been of some use to you, good luck.
“FIGHT ON”
Super Foods
Admin fees are pretty standard these days. I would say he explained in wrong and perhaps he was being “flowery” as a salesman. You get what you pay for, and free is never free, it will cost you in other areas. I would just be glad that they are up front about it.
Keller Williams is a solid company, and no I do not work with them, but I respect Gary Keller as a business person and his business model is truly a successful one in real estate.
Westlake Village
A real estate “junk fee”… The “perk” is that he splits that fee with his broker in addition to the commission the seller pays. Buyer’s now not only have to eagle their GFE & HUD-1 for lender junk fees, but now KW (and others) implement real estate junk fees?
Keller Williams is the “Amway” of real estate. (multi level marketing) They recruit agents to work for their firm, then promise them a tiered compensation based on agents they in turn recruit to also work for Keller Williams. Transaction fees too??? They’re working every angle of compensation possible.
Also ask for any “affiliate” disclosures, such as using an affiliates escrow, title or mortgage company. They may be receiving additional compensation there as well.
I personally would not pay it. It’s not standard. They make enough on commission that the seller pays, why gouge the buyer???
Which also brings up another point… This would need to be disclosed to the seller. Any agent/office receiving compensation from more than one party usually needs to disclose this fact to all the parties to the transaction. (Depends on your state’s real estate licensing laws)
There is a HUGE pool of buyer agents available that WILL NOT charge a buyer a $425 transaction fee.
If you deem it earned, use the agent. If not, there are plenty of other reputable & professional firms that do not require their agents to charge buyer’s a fee, in addition to the selling office commission.
My soapbox for the month. This kind of stuff just irks me.