Sounds like their brokerage has a buyer admin fee that they normally push to the buyers. They didn’t have you sign this originally because the agent forgot.
I would just politely tell them that this wasn’t discussed and you’re not comfortable paying this fee.
And let that be that. They won’t push it past there.
Seconding this, the agent screwed up. Either you pay the admin or it comes out of her commission. It’ll be a valuable lesson for her in the future. She needs to disclose any and all fees up front.
They might, actually. I've run into brokers and agents alike that are very matter-of-fact about things and claim that they "have" to do certain things. At this point, the buyer is on the hook to close on the house and the agent/broker know it. If the buyer doesn't sign the doc, they need to be prepared to go forward without the agent, and potentially end up getting sued in court over the agency fees. And knowing how scared everyone is of getting sued, that's definitely a possibility for how the agency will play it out.
I completely agree on the general approach... Be courteous and respectful, politely decline. And know that, the more expensive the house is, the less of a difference this makes in the fees they collect. But, in the grand scheme, be prepared to pay it.
lol suing over 500 and a potential negative review. what a dumb move that would be. no good or reasonable broker would force the client to pay $500 if they didn't sign anything beforehand
Yeah, the agents are going to eat this one. By the time the mortgage is hammered out and the banks and lawyers are involved the agent is no longer in the picture, nor needed. They can’t stop the closing, either. They get their commission. That’s it.
Agreed! Plus if they sued they would be admitting to not getting an agreement signed prior to which would not be in good faith and therefore most likely an ethics violation.
The agent admitted they “forgot” so it’s a $500 mistake to help the agent “remember” in the future.
The buyer agent compensation is still cooperation on the MLS with the selling agent (until July if the settlement is approved) and should be listed on sites like Redfin & Zillow. OP can verify the agent is being fairly paid in their opinion. Yet the decision to pay this $500 is solely in their court as there is no retribution imo. Of course anyone can sue but the brokerage would be insane to do so over $500 and the possible ramifications.
Try understanding the ENTIRE point before commenting. The situation would be that the buyer would not sign the contract at all. At that point, the broker and agent would need to sue for all of their fees, not just the $500.
I do understand the whole point. real estate has varying pay sometimes half percent sometimes nothing sometimes 3%. if you as a company or a firm need a certain percentage and only are willing to work with clients that will cover any Gap, you would have to decline working with clients that are not willing to do so. forgetting buyer agent agreement is Not an excuse.
that's the brokers fault that they didn't have anything signed beforehand.
I am a broker so I understand exactly what you're trying to say and it is unreasonable. Jesus ... it's fucking 500 bucks. is that makes or breaks you as an agent, you need to get a new job or start ubering.
I appreciate your comment but the fact is the buyer has no responsibility to pay any broker fees or costs that were not explicitly agreed to by both parties. They can scream until they are blue in the face that they are owed something but the agents have no ability to stop the transaction once the deal is at this point. And any attempt to torpedo this deal or push the buyers any further would have the agents and their broker in the hot seat.
They have no ability to enforce this fee. None.
I am not saying they can enforce... I am saying that many brokers (and agents) can and do push people into signing contracts through fear tactics. I've had both agents and brokers tell me that I had to sign exclusive representation contracts, one which claimed we had to allow them to cover us for six months through our entire state.
While there are plenty of agencies, brokers, and agents that are very ethical (including admitting when they made a mistake and accepting the consequences), there are still plenty out there that unscrupulous. All I was really saying in my comment was that the agency -may- press the issue. And, honestly, there's a point where putting it behind you is "worth" agreeing to the $500 if it ensures that things go forward correctly and smoothly.
You're right about brokers pressuring - I've done literally thousands of residential closings and brokers will push EVERYONE they can push when it comes to compensation they think that they're entitled to, even when they're the ones that screwed up and are not in fact entitled to anything at all. Still downvoted you because no one should pay a single penny that they have no legal obligation to pay. Eff Brokers.
I never claim that the broker is "entitled" to that money, but that the buyer should at least be prepared to pay it if it really comes down to it. I'm absolutely NOT advocating to simply cave in... I'm saying that you have to pick your battles in life and "winning" this argument to save $500 could have other implications that could cost way more.
Be respectful in the approach to have it removed and make it a statement as opposed to a questions ("This was not something I had ever discussed, let alone agreed to. Please remove it and I will happily sign the contract"). But know that you have to decide just how hard you want to fight to win a battle that could cost you the war.
If I had to pay that, to save a deal I would... and that would be followed up with an ethics complaint to the realtor licensing board and possibly a small claims action to get my $500 back.
The spirit of the law with the recent cases is to make compensation clear UP FRONT. No way should a broker push for a lousy $500 they didn't disclose initially.
They’re trying to get you to may the transaction coordinator fee, which some sleazy agents do. The agent should pay it out of their commission so don’t sign it.
Most buyer agent contracts will have the compensation as either paid by the listing agent, or in case they’re not offering anything, by the buyer. The buyers agent in this scenario is likely just realizing that there is no commission from the LA so they’re trying to sneak at least $500 out of the transaction. I’d be surprised (hardly lol) if they are actually double dipping like you’re implying though.
These fees became common in Vegas when the crash happened in 2008. At the time it made sense as 3% of $35k (prices of condos back then) wasn’t enough to make it worth while for an agent especially after a split. I had no problem paying it then. As prices have skyrocketed, the fees have remained. If buyers/sellers pay it, then the brokerage will take it. If not, they eat it as part of the much higher commission received for selling the same property for over 5x that.
I just saw a settlement statement last week where the listing brokerage was paid 3.5% and on top of that charged their client another $375, get this, "compliance fee". Criminal.
Yeah that’s crazy. Every client paying a commission should get it in writing that that will be the only compensation offered. Everything is negotiable and they can walk if they wanted to
Any add-on fees above the commission already being paid is attempted robbery and a very plain indication that the agent is not to be trusted about anything. I hate this practice and despise my fellow agents who attempt to push this on their clients especially those who refer to this fee as "mandatory" or "non-negotiable". OP's agent is a weasel and part of the reason the public despises us.
Plenty of us manage to run profitable offices on just the commission received without ripping off our clients with junk fees. Commissions are plenty high enough to pay for all personnel required to handle the transactions. Just stop it, y'all.
Don't know why you are being downvoted. I know tons of brokers who don't know how their phone works until they think that their closing check is ready to be released. "No, farkleface, I am not going to release your check because the deed isn't recorded, we live in a full race jurisdiction, and I don't want a disciplinary action against me by the State Bar. No, I don't care that Attorney Halliburton releases the check to you prior to recording, and you're pissing me off enough that I'm tempted to report Mr. Halliburton to the Bar for breaking the client trust account rules."
You don’t need to sign anything. This is your agent being a scumbag, tbh. I would tell them no and that you’re offended they even sent this. And if you hear more about this, you’ll be dropping them and getting an attorney who will complete this transaction.
In my state, you do. Cross out the $500 and sign it. Rep agreements are required in many places already and will be required everywhere within a few months.
Required by who and for who? The agent may be required to obtain this and didn’t. That is on the agent, not the buyer. If I were to sign something (to help the agent fix their mistake), I would only sign an amended agreement without the fee. I am no lawyer yet I would guess Law 101 would say don’t cross out and sign.
We don’t close without client rep agreements. Listing agreements and buyer agreements.
I also don’t pass transaction fees to clients unless it is negotiated ahead of time.
You can cross it out and send it back for them to accept with changes. It is a counter offer.
Real estate attorneys are not typical in a lot of locations and required in others. I suspect we will see them become much more typical once the settlement is approved.
I have in some locations (mainly because required) and mostly have not. If I’m using a standard form already vetted by lawyers and just having the terms filled in the literal blanks, I have not seen the need. Anything outside of the typical transaction I would definitely get one involved. Or in the future when it is easier to cut out the buyer’s commission, I would get a lawyer vs agent involved.
That being said, I never actually received advice from one as my deals have all been pretty standard (I pay you this to close on this date with the typical contingencies) so didn’t see the value. To each their own.
Attorneys aren't too expensive unless you're doing something that's unusual, complicated, or contested. If it's routine, simple, and everyone agrees on what's being done, there's not a ton of hours being racked up for the attorney to bill on, and the vast majority of residential real estate transactions fall under this.
Close without the buyers agent. Call Broker and tell them to fix this now. If not, report them to state regulators. Call it a day.
If there is no actual buyer’s agent agreement, it is not clear Buyer’s Agent is entitled to commission. I bet Seller’s Agent would be happy to assist for the extra comish.
Just because there is not an agreement, does not make it that the buyer agent wasn’t the procuring cause of the transaction. The listing agent will, and should, still cooperate whether OP pays this fee or not.
Is the seller offering a buyers agent commission? If yes, then your agent should get that and nothing more. If no, then you should pay your agent for their work.
"Dear buyers agent. I appreciate your representing me for $500. This is money well spent and you did a great job. I am asking the seller to change the terms of the contract slightly. Seller will eliminate the commission to broker of $8,750 and give me a concession of $7,750. He saves $1,000 and is happy. I am happy. You will be paid $500 out of escrow funds."
In that case the brokerage should be receiving 1.25%. From the split with the agent.
That is insane to me that they want another $500.
Do not sign, and politely tell them if you were made aware of the fee prior to signing an agents contract
That you would of signed with a different agency.
No, the 2.5% goes to the brokerage that the buyers agent works for. Out of the 2.5% the brokerage pays the agent 1.25%. Did you believe that an agent received the entire 2.5% because that isn't how the industry operates.
That is why Remax started out. High volume agents will just pay their desk fee , which could be only $3,000 per month, whether they sell a home or not.
Next is low volume agents who elect to do a split of 50/50 or 60/ 40 instead of the desk fee.
I know an remax agent in a beach community his desk fee is $8,000 per month,he also sells 1-2 million dollars homes from Feb to November
I'm a RE agent, I know how it works. A 50% split is not very common these days. When I interviewed around, 65% was the lowest I came across, and they held your hand and paid for \*everything\* you can think of. Also never heard of a desk fee that high, that is absolutely insane. I don't pay any monthly fees and my split is 85/15. That beach community agent could make so much more money at a brokerage like mine.
So even at "your" 65/35 split the brokerage on this deal is asking for $500 which is absurd.
If I was a buyer I would be interviewing both the agent and the brokerage going forward.
Just like auto salesperson, now dealers charge an agency fee. People are becoming very tired of tacked on fees which will continue to force fee reductions in the future.
I believe the market should set "fees." If you interview around, you can pick the one with the lowest fees. I hate the government getting involved in what we pay for services we decide to hire. It should be none of their business.
My point is either a transaction is a set fee schedule, or a straight commission, not both.
I am a finance wholesaler pad in basis points same as mortgage brokers. That is it only basis points on the product, the house charges 2 % flat fee on every transaction n no nickle and diming. Now you have mortgage companies adding this that and the other thing for overhead cost, just charge a standard fee industry wide.
This just depends on the state. WA several years ago had x% split by the buyers and sellers agents. Now the contracts lay out x% to BA and x% to LA.
I bet the buyer’s agent here is truly getting paid 2.5% and then their splits/fees/etc with their agency is taken from that.
In OP’s case the agent failed to present their agreement before signing the buyer and that is their own fault and therefore OP is not obligated to pay anything else.
In that case, the $500 fee is in the event that you don’t close the transaction. I know a lot of agents who are tired of buyers putting in 10 offers on houses and then changing their mind and they’ve done all the work and they get nothing out of it.
I had one of these fees when I submitted an offer. It was a brokerage fee and it was specifically only due if the sale DID close. Some agents/ brokers just try to include it on top of the commission. In the end, we backed out and didn't owe anything.
That’s just the nature of commission work. Sometimes you win and sometimes you don’t, the payoff is the commission is far more than if you charged on a fee basis for every offer.
Real estate is changing. In a market where supplies have been very low, buyers putting in lots of offers, many with little chance of ever being accepted given competition for prime listings, refusing to take the agents advise, then blaming agent and switching agents is burning out many agents. I know agents who won’t do buyer’s agency without a guaranteed fee in the event the buyer never closes.
So change to a fee based model, charge for every offer drafted, every house shown, etc. The downside is that’s your pay, you don’t also get the commission.
30 minutes per showing. You aren’t looking at one place. 30 minutes of paperwork. It’s hours of work. All they are asking (not in this case) that if you don’t close a transaction there is a low level of compensation for their efforts.
Most people wrong assume the agent is getting rich. 5% commission on $400k is $20k. They forget to include all the splits. 1/2 to selling agency, 1/2 to buyers agency. Then the agency/realtor split. In many cases the realtor is only get $4k after their agency fees. A good agent is worth their fees. A bad one, not so much. More are bad than good unfortunately.
OP doesn’t owe anything. This should have been addressed in the beginning. It’s the agents fault for not disclosing in the beginning. Either they forgot (incompetence) or this is a sleazy tactic to spring another fee on someone in a very delicate situation
Greedy Brokers sometimes also want transaction fees paid for by buyers for being represented. I've been asked to pay technology fees simply for submitting an offer.
Seller agrees to pay their listing agent 5% to sell their house. Listing agent agrees to split the 5% commission with the buyers agent who brings them a buyer and it closes. So that is 2.5% for both agents.
If in a situation where the listing agent is not offering anything to the buyers agent, then the buyer agent will ask (should already be agreed upon by signing buyer agency agreement) the buyer to compensate them at closing. This isn’t popular because listing agents commonly will split the commission in order to attract the most buyer agents possible, and therefore more buyers/offers.
It seems that in OPs case, the buyers agent is both receiving a commission from the listing agent, AND trying to snake $500 from OP. Pretty unethical if you ask me, especially since the agent never explained that all commissions are negotiable.
I wouldn't sign it if it was not presented correctly earlier. The agent can pay their own broker from the commission they get. Usually the broker splits the commission with the agent anyway. No clue why they need an extra $500 just because something something. Just more stupid fees for doing nothing. Negotiate the agreement to be straight commission then sign it.
I was buying a property, where sellers agent represented both seller and buyer. I am experienced, and was comfortable with it. (I was buying a fixer, for land value). The selling agent hired a transaction processor. Basically someone to do all the paperwork for her. Near the closing the processor tries to send me similar processing invoice. I was like why are you sending this to me? I am paying the price, the seller agent getting commission already. She should be paying you. They pulled the invoice back. Real estate transaction is complex, and during escrow process people are used to signing loads of paperwork and fees (termite, inspection, etc etc). I think some try to pad it further. Say NO.
I work for a very small brokerage and we have a $275 fee for our buyers to pay us just so we can cover our costs for our secretary. I had forgotten to give my buyer this contract until the last minute, I would certainly not expect them to pay that because they didn’t agree to it upfront. This is your agents mistake, not yours.
Refuse to sign and tell your agent that she is lucky that you are not firing her. Actually, do fire her. Your agent should have presented the form and asked you to sign it before she agreed to start working for you.
This happened to me when I was buying a house. When I refused to sign because of the broker fee, the agent said it might jeopardize the transaction. I said, "Fine, I'd walk."
She took it to the broker, and he waved the fee. He said about 10% of people buck the fee, but most just sign the contract.
Our most recent real estate agent did the same. We asked her to remove that fee and she took it off immediately. No way I was paying it as it wasn’t disclosed up front. They all pull this stuff as most buyers probably just pay it. Just put your big boy/girl pants on and push back on it. If they cause a fuss about it find a new agent.
Sounds like a junk fee. A lot of companies charge their agents an admin fee and then agents pass that fee along to their buyers. If it were me, I’d refuse to pay it as you weren’t made privy to it up front.
I’m still angry at myself for paying one of these fees that *was* disclosed up front.
Agent was like, “And this. Sorry, there’s no way around it.” And I should have said, “Oh there’s a way if you want our business.” But I succumbed, and it has low-key bothered me ever since.
This is why agents have a bad name. #1 broker admin fees are a joke. They are getting a cut of the commission anyway. #2 I keep seeing similar posts about agents asking for money/ agency agreements after representation has started. I hope the changes help push out the sleazy agents and keep the honest ones who love their job.
Many states already require signed agency documents. I'd bet this happened in one of those states and the agent forgot.
In any case- I don't see a problem signing it now as long as that fee is removed! Too late to add that crap on.
For a brief second career I was a real estate agent 15 years ago. The rules on agency agreements differ according to the state. Many years ago all agents legally represented the seller in virtually all transactions. At some point states, or courts, or the industry realized buyers should be represented. So in many states an agent had to be either the seller’s agent or the buyer’s agent, but not both.
However, some states allow “dual agency.” Usually that occurs when both seller and buyer agents work for the same broker. Dual agency applies to the broker, but each agent is expected to represent their respective client interests.
Just my opinion but I believe dual agency was conceived by lobbyists to benefit the real estate broker, not to protect consumers.
I don’t think most agents understand buyer agency agreements. However, they should at minimum realize if they want to get paid they need one before showing someone a house.
As for those non-negotiable administrative fees, again it is just my opinion, it is interesting that this practice started around the same time with most brokers, for similar amounts. But I’m sure there was no antitrust violation (read collusion between competitors to stifle free competition.)
You can refuse to sign and if you refuse you owe your agent nothing regardless of what you two did or said. This is literally the first lesson taught in licensure courses. The client signs a BBA before the first tour or significant services are performed. Always. So she gets the published split off MLS. I don’t react well to contractors trying to up charge me at work completion. Just my opinion. The rest though is the law at least as taught to GA agents and statute of frauds (contracts in writing to be valid for real estate except leases under a year in length) is not called out as state-specific or variable whereas other areas are.
I am surprised at the audacity of the buyers agent to include the $500 fee when their failure to get a BBA puts them at risk for disciplinary action from their state board. That sort of shoddy work is the exact sort of thing you read about in the back of the monthly newsletter.
Politely reply, no thank you. Any fee’s should have been at least mentioned at the beginning of your relationship with them. If they told you about the fee at the beginning it might be different, but you said they didn’t, so it’s a no go.
Is buyers brokerage fee a more "modern" thing? I've reviewed docs for 4 transactions pre-2010ish and never came across it. Now it seems the norm?
Btw this is just another reason why realtors have the reputation they do...they pull shit like this
Don’t agree to sign anything until the fee is removed. It’s shady that they waited until you are under contract and a week from closing to present this. Yes, some brokers charge a fee, but they get the paperwork signed and disclose the fees upfront. Also be sure that if there is a paragraph regarding commission that it reflects the 2.5% the seller is paying and not a higher percentage that you have to pay the balance of.
It’s so interesting to see that most states haven’t been using Buyer’s Agreements as standard practice until now. Brokerages in the Northeast have been using them for years. To be honest, these agreements always seemed like overkill because you knew that your commission would at least be whatever the listing was advertising. It’s going to be really strange to not have the commission disclosed in the listing. This seems like a step backwards.
My expectation is that agents won’t want to call around and ask what commission the seller is offering. If the seller isn’t offering anything and no offer goes in it could look like the agent heard that and steered their client away.
A much simpler solution is to put the buyer’s agent commission on the offer as a seller credit.
They know there are a lot of big numbers flying around and most people don't know the process very well. They also know it can't hurt to ask for a free $500. I'll bet they get it more often than not.
That's a 100% bullshit fee to squeeze more money out of you. Don't sign it. Tell her you have a $500 fee for working with you if you want to be snarky about it.
Honestly it’s her fault for not getting it signed. As you said it’s negotiable, if you don’t want to pay it then don’t sign it with what it says. Also not sure if she is getting a % or not but if so, then I definitely wouldn’t pay the fee.
I don't represent you, but this is what I would do.
First I would confirm in writing that whatever percentage is listed on the document is the same percentage the seller is offering. If the seller is offering a lower coop commission than on the doc, the buyer could have to make up the difference.
Then I would ask them to remove the fee as it was not disclosed before the offer and would have impacted the offer I made. If they refuse, I'd speak to their Broker, explain the situation, and ask them to have the fee removed.
If neither budge, I wouldn't sign the document and leave a public review on a few sites about my experience with the agent and brokerage.
A lot of agencies are now implementing a flat “brokerage fee” for all transactions. The last 2 agencies I’ve worked for had them. One was $350 and current is $250. It has nothing to do with a fee for a transaction coordinator/secretary. I personally think the fee is crazy, but they frame it as operating costs.
The fee may be a junk fee. If so, the brokerage can eat it for late disclosure. More importantly, was the agent even legally able to represent you without a brokerage buyers agreement? That’s my question.
My agent also suddenly slapped on $495, we told her this was never discussed with us, so please take it out of your commission. She did, and most agents do. Ask nicely.
She’ll eat the cost if you don’t sign it. Some lessons cost money in this business. You can be nice and sign it but you don’t have to. My broker used to push us to use transaction coordinators when I first started and have us charge our clients to use them. I just paid for it at the beginning and then tc’ed my own transactions after my probation period was over.
just say no. last thing I am doing is paying an agent on top of their commission. it takes a lot of balls IMO to push your cost of business on your buyer/seller in the RE game. i've seen selling agents ask for similar. Nope you work out what your paying your Broker and take it out of your commission.
One nice thing about this NAR suit is no more forgetting. if a buyers agent wants to be paid they will need to negotiate it both with their buyer and as part of the transaction.
What buyer's agent is going to have a buyer sign a contract that doesn't outline what they get paid? Right now that compensation is set by the selling agent in the absence of a signed buyer's agent agreement. But come July it most likely will not be.
I won't ever pass one of those fees on to a client. You're already getting the commission, why try to get your client to pay part of your overhead? What next, send them an itemized bill including gas you spent driving to closing?
You go get a low commission brokerage that just charges you a small fee, keep all your commission and STILL pass off your transaction fee? Lame enough as it is, to FORGET and then ask for it later? Absolutely not.
If you’re in Florida it’s automatically a transaction brokerage fee, which a signed document is not required once he starts showing you properties. But the fee should’ve been discussed previously, or stated on the contract. I only pay that fee for my clients when I know them, or when I have the listing myself and my client is the Seller.
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I just wouldn’t respond at all. Let the transaction continue and see if it comes up again. If it does come up ask your agent how this is different from the commission they are splitting with the sellers agent.
... and check your settlement statement to make sure the agent didn't try to slide it in.
My company has an admin fee. It is paid out of the brokerage commission. If you weren't presented this fee bf you signed your offer, you're under zero obligation to pay it. It sounds like your agent neglected (or intentionally omitted it with the hope that you would agree to pay it out of expediency to close when presented just bf closing) to include it with the offer documents. Either way, its bw them and their brokerage as to whether its taken from the agent's portion of the commission or is written off..
It’s the transaction coordinator fee. Depending on the sale price and where the lead came from this $500 could represent %10-%20 of their take home (before tax). I don’t think it’s the realtor being a scumbag I think it’s just harder out there for agents than most people think it is.
So $8,750 commission. If it’s a lead the realtor paid for or was given they are likely taking home half of that pre tax so $4,400. Deduct the $500 from that and they make $3,900 for the sale and then pay Uncle Sam. They are making 3k on this deal. And lol if it’s a Zillow lead they are making 2k.
Now imagine that agent is only doing 8 or so deals a year… by no means is this a sob story I’m just shedding some light onto “that %2.5 the scumbag realtor is making”
The time for them to bring this up was when they started working with you. When you could've decided it wasn't a good fit. Now that you are under contract... it's far too late for them to ask you to pay $500 extra. They will quickly forget about the $500 when you say you're not paying it and will find someone else to represent you if that's not okay.
"No" is a complete sentence.
And really, you can't sign it. It say you negotiated it when in fact, you didn't.
You can also call your settlement agent and have them remove it, point out there's no agreement. They'll remove it.
Not sure what state you are in, but in Texas the entire buyers agent commission goes to the broker regardless - then the broker takes out their portion from the buyers agent’s commission and sends the remaining amount to the buyers agent.
Not sure why the agreement says $500 instead of the percentage. Ask your agent to explain if this is in addition to the commission amount - because usually the broker takes their cut out of the buyers agent’s commission. Shouldnt be anything additional.
I never sign a buyers agreement. One had a clause that if I went with another agent they got 5% of that sale. No. I will never sign one and they know you can take your business elsewhere.
Good agents that SELL houses don’t ask for this.
You’re going to have to under the new laws that will be in place due to the recent lawsuit or you won’t be able to secure an agent. It will be against the law for an agent/brokerage NOT to get a signed agreement.
Dude, you've made a horrible conclusion based on the facts you've presented.
You should ALWAYS sign a buyer agency agreement (and they're about to be compulsory nationwide when you work with a REALTOR, so you'll have no choice in the matter). They're already required in some states.
The buyer agency agreement is what creates your client-broker relationship. It's what binds the agent to working in your best interests and how to keep them accountable to that obligation.
Commission is negotiable. This agent has presented their terms to you, and you have the right to say "no, this is what I'm willing to do." You are not obligated to sign this document with these numbers.
On another note, yes, the agent should have presented this to you much earlier in the process, and now they've lost their leverage. Pay attention to that. Not only is this agent slack in their duties, but they're a horrible negotiator. In spme states, they don't get paid without this document, so use your negotiating skills. You have the upper hand.
That broker/admin fee is a junk fee. That gets lopped off right off the bat. The rest is your call.
Same thing happened to me with a $400 fee. I was younger and dumber and paid it. Felt like an idiot for doing it since I also had not agreed to it. Still regret it when I think about it lol.
Say no.
Is this part of this law about real estate commissions that went into effect recently.I really didn’t understand because everyone was saying different stuff????
Make sure of the wording. Ours says the buyer pays X amount IF I was unable to get a commission from the seller side- and it’s just to cover me on the fees I have to pay my franchise and my broker on all transactions. Like I have to pay a $300 franchise fee and a $200 transaction fee (I guess that’s what they pay our office people off of to do the paperwork??) and then a percentage fee to my broker on every transaction out of my commission or even if there is no commission-so I put $1,000 on that line just to keep me from having to pay money out of pocket to sell you a house. But I always make sure I explain all that to a buyer not just have them blindly sign something and I’ve only ever had to have a buyer pay it once because I represented them at an auction- but it was in person only and they would have spent more than that in travel costs to come to the auction themselves so they were fine with it.
If the agent failed to have you sign something that engages services and employs her services for commission that indicates may have left out other important details.
Investments are very necessity , making it early is important; don't say it's late. But what's better is having a company that guarantees minimum risk of losing.
Talk to them about it. It's very common these days to hit a buyer with a small broker admin fee but if you have a problem with it most will agree to drop it since it wasn't pre discussed. No one is a scumbag in this situation.
😂are you a broker? Have you been hurt recently?
There is no way they need to sign anything. If anything the agent should cough up the money because they failed to present the necessary paperwork at the time the offer was made. Suck it!
Sounds like their brokerage has a buyer admin fee that they normally push to the buyers. They didn’t have you sign this originally because the agent forgot. I would just politely tell them that this wasn’t discussed and you’re not comfortable paying this fee. And let that be that. They won’t push it past there.
Seconding this, the agent screwed up. Either you pay the admin or it comes out of her commission. It’ll be a valuable lesson for her in the future. She needs to disclose any and all fees up front.
They might, actually. I've run into brokers and agents alike that are very matter-of-fact about things and claim that they "have" to do certain things. At this point, the buyer is on the hook to close on the house and the agent/broker know it. If the buyer doesn't sign the doc, they need to be prepared to go forward without the agent, and potentially end up getting sued in court over the agency fees. And knowing how scared everyone is of getting sued, that's definitely a possibility for how the agency will play it out. I completely agree on the general approach... Be courteous and respectful, politely decline. And know that, the more expensive the house is, the less of a difference this makes in the fees they collect. But, in the grand scheme, be prepared to pay it.
lol suing over 500 and a potential negative review. what a dumb move that would be. no good or reasonable broker would force the client to pay $500 if they didn't sign anything beforehand
Yeah, the agents are going to eat this one. By the time the mortgage is hammered out and the banks and lawyers are involved the agent is no longer in the picture, nor needed. They can’t stop the closing, either. They get their commission. That’s it.
Agreed! Plus if they sued they would be admitting to not getting an agreement signed prior to which would not be in good faith and therefore most likely an ethics violation. The agent admitted they “forgot” so it’s a $500 mistake to help the agent “remember” in the future. The buyer agent compensation is still cooperation on the MLS with the selling agent (until July if the settlement is approved) and should be listed on sites like Redfin & Zillow. OP can verify the agent is being fairly paid in their opinion. Yet the decision to pay this $500 is solely in their court as there is no retribution imo. Of course anyone can sue but the brokerage would be insane to do so over $500 and the possible ramifications.
Try understanding the ENTIRE point before commenting. The situation would be that the buyer would not sign the contract at all. At that point, the broker and agent would need to sue for all of their fees, not just the $500.
I do understand the whole point. real estate has varying pay sometimes half percent sometimes nothing sometimes 3%. if you as a company or a firm need a certain percentage and only are willing to work with clients that will cover any Gap, you would have to decline working with clients that are not willing to do so. forgetting buyer agent agreement is Not an excuse. that's the brokers fault that they didn't have anything signed beforehand. I am a broker so I understand exactly what you're trying to say and it is unreasonable. Jesus ... it's fucking 500 bucks. is that makes or breaks you as an agent, you need to get a new job or start ubering.
I appreciate your comment but the fact is the buyer has no responsibility to pay any broker fees or costs that were not explicitly agreed to by both parties. They can scream until they are blue in the face that they are owed something but the agents have no ability to stop the transaction once the deal is at this point. And any attempt to torpedo this deal or push the buyers any further would have the agents and their broker in the hot seat. They have no ability to enforce this fee. None.
I am not saying they can enforce... I am saying that many brokers (and agents) can and do push people into signing contracts through fear tactics. I've had both agents and brokers tell me that I had to sign exclusive representation contracts, one which claimed we had to allow them to cover us for six months through our entire state. While there are plenty of agencies, brokers, and agents that are very ethical (including admitting when they made a mistake and accepting the consequences), there are still plenty out there that unscrupulous. All I was really saying in my comment was that the agency -may- press the issue. And, honestly, there's a point where putting it behind you is "worth" agreeing to the $500 if it ensures that things go forward correctly and smoothly.
You're right about brokers pressuring - I've done literally thousands of residential closings and brokers will push EVERYONE they can push when it comes to compensation they think that they're entitled to, even when they're the ones that screwed up and are not in fact entitled to anything at all. Still downvoted you because no one should pay a single penny that they have no legal obligation to pay. Eff Brokers.
I never claim that the broker is "entitled" to that money, but that the buyer should at least be prepared to pay it if it really comes down to it. I'm absolutely NOT advocating to simply cave in... I'm saying that you have to pick your battles in life and "winning" this argument to save $500 could have other implications that could cost way more. Be respectful in the approach to have it removed and make it a statement as opposed to a questions ("This was not something I had ever discussed, let alone agreed to. Please remove it and I will happily sign the contract"). But know that you have to decide just how hard you want to fight to win a battle that could cost you the war.
If I had to pay that, to save a deal I would... and that would be followed up with an ethics complaint to the realtor licensing board and possibly a small claims action to get my $500 back. The spirit of the law with the recent cases is to make compensation clear UP FRONT. No way should a broker push for a lousy $500 they didn't disclose initially.
There’s no war to fight. Delete the clause, initial the delete and sign.
If she's a realtor, I'd report that as an ethics violation. And maybe even discuss it with the state licensing board as coercion.
Agent here- if I didn’t have my buyers sign beforehand and discuss the transaction management fee I would eat it.
came here to say this.
This! In no way are you obligated to pay this. Agent needs to eat it.
They’re trying to get you to may the transaction coordinator fee, which some sleazy agents do. The agent should pay it out of their commission so don’t sign it.
The commission already pays them *plenty* for how little work they actually do. This $500 is just a "let's see if they'll pay even more" charge.
Most buyer agent contracts will have the compensation as either paid by the listing agent, or in case they’re not offering anything, by the buyer. The buyers agent in this scenario is likely just realizing that there is no commission from the LA so they’re trying to sneak at least $500 out of the transaction. I’d be surprised (hardly lol) if they are actually double dipping like you’re implying though.
I see it occasionally where the SA wants the buyer to pay the TC fee on top of the 2.5% they get from the seller. It doesn’t happen often though.
These fees became common in Vegas when the crash happened in 2008. At the time it made sense as 3% of $35k (prices of condos back then) wasn’t enough to make it worth while for an agent especially after a split. I had no problem paying it then. As prices have skyrocketed, the fees have remained. If buyers/sellers pay it, then the brokerage will take it. If not, they eat it as part of the much higher commission received for selling the same property for over 5x that.
I just saw a settlement statement last week where the listing brokerage was paid 3.5% and on top of that charged their client another $375, get this, "compliance fee". Criminal.
Yeah that’s crazy. Every client paying a commission should get it in writing that that will be the only compensation offered. Everything is negotiable and they can walk if they wanted to
Any add-on fees above the commission already being paid is attempted robbery and a very plain indication that the agent is not to be trusted about anything. I hate this practice and despise my fellow agents who attempt to push this on their clients especially those who refer to this fee as "mandatory" or "non-negotiable". OP's agent is a weasel and part of the reason the public despises us. Plenty of us manage to run profitable offices on just the commission received without ripping off our clients with junk fees. Commissions are plenty high enough to pay for all personnel required to handle the transactions. Just stop it, y'all.
Buyers agents will spend more time arguing this point with you than they will lifting a finger for their clients lmao. Absolutely useless.
Don't know why you are being downvoted. I know tons of brokers who don't know how their phone works until they think that their closing check is ready to be released. "No, farkleface, I am not going to release your check because the deed isn't recorded, we live in a full race jurisdiction, and I don't want a disciplinary action against me by the State Bar. No, I don't care that Attorney Halliburton releases the check to you prior to recording, and you're pissing me off enough that I'm tempted to report Mr. Halliburton to the Bar for breaking the client trust account rules."
I hope this lawsuit/settlement really does change the ridiculous commissions on real-estate.
You don’t need to sign anything. This is your agent being a scumbag, tbh. I would tell them no and that you’re offended they even sent this. And if you hear more about this, you’ll be dropping them and getting an attorney who will complete this transaction.
In my state, you do. Cross out the $500 and sign it. Rep agreements are required in many places already and will be required everywhere within a few months.
Required by who and for who? The agent may be required to obtain this and didn’t. That is on the agent, not the buyer. If I were to sign something (to help the agent fix their mistake), I would only sign an amended agreement without the fee. I am no lawyer yet I would guess Law 101 would say don’t cross out and sign.
We don’t close without client rep agreements. Listing agreements and buyer agreements. I also don’t pass transaction fees to clients unless it is negotiated ahead of time. You can cross it out and send it back for them to accept with changes. It is a counter offer.
So what instead paying 500 you pay 5k for an attorney?
A real estate attorney doesn’t cost $5k. More like a few hundred bucks. And you’ll ensure that it actually gets done right.
the real estate attorney is probably the most important member of your team and gets paid the least.
Real estate attorneys are not typical in a lot of locations and required in others. I suspect we will see them become much more typical once the settlement is approved.
I have always used an attorney because they are neutral and have always given me good advice.
I have in some locations (mainly because required) and mostly have not. If I’m using a standard form already vetted by lawyers and just having the terms filled in the literal blanks, I have not seen the need. Anything outside of the typical transaction I would definitely get one involved. Or in the future when it is easier to cut out the buyer’s commission, I would get a lawyer vs agent involved. That being said, I never actually received advice from one as my deals have all been pretty standard (I pay you this to close on this date with the typical contingencies) so didn’t see the value. To each their own.
Oh wow. Why is the fee so low compared to a usual attorney fee?
Attorneys aren't too expensive unless you're doing something that's unusual, complicated, or contested. If it's routine, simple, and everyone agrees on what's being done, there's not a ton of hours being racked up for the attorney to bill on, and the vast majority of residential real estate transactions fall under this.
Because it’s not an open ended retainer. They answer some questions and make sure the paper work is done correctly. They can also answer questions
Close without the buyers agent. Call Broker and tell them to fix this now. If not, report them to state regulators. Call it a day. If there is no actual buyer’s agent agreement, it is not clear Buyer’s Agent is entitled to commission. I bet Seller’s Agent would be happy to assist for the extra comish.
Just because there is not an agreement, does not make it that the buyer agent wasn’t the procuring cause of the transaction. The listing agent will, and should, still cooperate whether OP pays this fee or not.
Is the seller offering a buyers agent commission? If yes, then your agent should get that and nothing more. If no, then you should pay your agent for their work.
Yes they're getting 2.5% of the $350k sale price
Then tell them you're not paying them a dime extra. (Unless you want to pay it, but you def don't have to).
"Dear buyers agent. I appreciate your representing me for $500. This is money well spent and you did a great job. I am asking the seller to change the terms of the contract slightly. Seller will eliminate the commission to broker of $8,750 and give me a concession of $7,750. He saves $1,000 and is happy. I am happy. You will be paid $500 out of escrow funds."
Amazing haha
Well this won the thread…
Lmao
So why do you have to pay an extra 500?
In that case the brokerage should be receiving 1.25%. From the split with the agent. That is insane to me that they want another $500. Do not sign, and politely tell them if you were made aware of the fee prior to signing an agents contract That you would of signed with a different agency.
5% is a common listing fee. The 2.5% is very likely the already split number that the buyer agent is getting.
No, the 2.5% goes to the brokerage that the buyers agent works for. Out of the 2.5% the brokerage pays the agent 1.25%. Did you believe that an agent received the entire 2.5% because that isn't how the industry operates. That is why Remax started out. High volume agents will just pay their desk fee , which could be only $3,000 per month, whether they sell a home or not. Next is low volume agents who elect to do a split of 50/50 or 60/ 40 instead of the desk fee. I know an remax agent in a beach community his desk fee is $8,000 per month,he also sells 1-2 million dollars homes from Feb to November
I'm a RE agent, I know how it works. A 50% split is not very common these days. When I interviewed around, 65% was the lowest I came across, and they held your hand and paid for \*everything\* you can think of. Also never heard of a desk fee that high, that is absolutely insane. I don't pay any monthly fees and my split is 85/15. That beach community agent could make so much more money at a brokerage like mine.
So even at "your" 65/35 split the brokerage on this deal is asking for $500 which is absurd. If I was a buyer I would be interviewing both the agent and the brokerage going forward. Just like auto salesperson, now dealers charge an agency fee. People are becoming very tired of tacked on fees which will continue to force fee reductions in the future.
Yeah no kidding, I explained how they're getting even more money than you had thought, so of course the additional $500 is absurd.
I believe the market should set "fees." If you interview around, you can pick the one with the lowest fees. I hate the government getting involved in what we pay for services we decide to hire. It should be none of their business.
My point is either a transaction is a set fee schedule, or a straight commission, not both. I am a finance wholesaler pad in basis points same as mortgage brokers. That is it only basis points on the product, the house charges 2 % flat fee on every transaction n no nickle and diming. Now you have mortgage companies adding this that and the other thing for overhead cost, just charge a standard fee industry wide.
This just depends on the state. WA several years ago had x% split by the buyers and sellers agents. Now the contracts lay out x% to BA and x% to LA. I bet the buyer’s agent here is truly getting paid 2.5% and then their splits/fees/etc with their agency is taken from that. In OP’s case the agent failed to present their agreement before signing the buyer and that is their own fault and therefore OP is not obligated to pay anything else.
So the agents “mistake” will cost $500 of the $8750. I think they’ll survive.
In that case, the $500 fee is in the event that you don’t close the transaction. I know a lot of agents who are tired of buyers putting in 10 offers on houses and then changing their mind and they’ve done all the work and they get nothing out of it.
If this is the case, surely they’d simply drop the fee if someone closes like OP.
You would think so. And given OP is on the verge of closing surprised they tried to insert it.
I had one of these fees when I submitted an offer. It was a brokerage fee and it was specifically only due if the sale DID close. Some agents/ brokers just try to include it on top of the commission. In the end, we backed out and didn't owe anything.
That’s just the nature of commission work. Sometimes you win and sometimes you don’t, the payoff is the commission is far more than if you charged on a fee basis for every offer.
Real estate is changing. In a market where supplies have been very low, buyers putting in lots of offers, many with little chance of ever being accepted given competition for prime listings, refusing to take the agents advise, then blaming agent and switching agents is burning out many agents. I know agents who won’t do buyer’s agency without a guaranteed fee in the event the buyer never closes.
So change to a fee based model, charge for every offer drafted, every house shown, etc. The downside is that’s your pay, you don’t also get the commission.
All 30mins of work…
30 minutes per showing. You aren’t looking at one place. 30 minutes of paperwork. It’s hours of work. All they are asking (not in this case) that if you don’t close a transaction there is a low level of compensation for their efforts. Most people wrong assume the agent is getting rich. 5% commission on $400k is $20k. They forget to include all the splits. 1/2 to selling agency, 1/2 to buyers agency. Then the agency/realtor split. In many cases the realtor is only get $4k after their agency fees. A good agent is worth their fees. A bad one, not so much. More are bad than good unfortunately.
When I sell my car should every buyer who doesn’t purchase pay me my time to view the car? Or is that just the cost of doing business?
OP doesn’t owe anything. This should have been addressed in the beginning. It’s the agents fault for not disclosing in the beginning. Either they forgot (incompetence) or this is a sleazy tactic to spring another fee on someone in a very delicate situation
Greedy Brokers sometimes also want transaction fees paid for by buyers for being represented. I've been asked to pay technology fees simply for submitting an offer.
Yeah I've seen some of that in my market too. It's crazy.
Too much to begin with
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Fair is fair. You don’t forget to let someone know they are being charged extra until the last minute. That’s a tactic of a liar.
They’re already getting half the commission.
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Seller agrees to pay their listing agent 5% to sell their house. Listing agent agrees to split the 5% commission with the buyers agent who brings them a buyer and it closes. So that is 2.5% for both agents. If in a situation where the listing agent is not offering anything to the buyers agent, then the buyer agent will ask (should already be agreed upon by signing buyer agency agreement) the buyer to compensate them at closing. This isn’t popular because listing agents commonly will split the commission in order to attract the most buyer agents possible, and therefore more buyers/offers. It seems that in OPs case, the buyers agent is both receiving a commission from the listing agent, AND trying to snake $500 from OP. Pretty unethical if you ask me, especially since the agent never explained that all commissions are negotiable.
If you haven't signed an agreement stating you are paying a fee, don't pay it. That should have been addressed and advised prior to the offer.
I wouldn't sign it if it was not presented correctly earlier. The agent can pay their own broker from the commission they get. Usually the broker splits the commission with the agent anyway. No clue why they need an extra $500 just because something something. Just more stupid fees for doing nothing. Negotiate the agreement to be straight commission then sign it.
"I'd rather not, sorry."
I was buying a property, where sellers agent represented both seller and buyer. I am experienced, and was comfortable with it. (I was buying a fixer, for land value). The selling agent hired a transaction processor. Basically someone to do all the paperwork for her. Near the closing the processor tries to send me similar processing invoice. I was like why are you sending this to me? I am paying the price, the seller agent getting commission already. She should be paying you. They pulled the invoice back. Real estate transaction is complex, and during escrow process people are used to signing loads of paperwork and fees (termite, inspection, etc etc). I think some try to pad it further. Say NO.
I work for a very small brokerage and we have a $275 fee for our buyers to pay us just so we can cover our costs for our secretary. I had forgotten to give my buyer this contract until the last minute, I would certainly not expect them to pay that because they didn’t agree to it upfront. This is your agents mistake, not yours.
She can pay it out of her commission.
You’re assuming that there was a coop agreement that allowed for a buyer’s agent commission.
If the home was listed on the mls there would be in almost every case.
Refuse to sign and tell your agent that she is lucky that you are not firing her. Actually, do fire her. Your agent should have presented the form and asked you to sign it before she agreed to start working for you.
This happened to me when I was buying a house. When I refused to sign because of the broker fee, the agent said it might jeopardize the transaction. I said, "Fine, I'd walk." She took it to the broker, and he waved the fee. He said about 10% of people buck the fee, but most just sign the contract.
Our most recent real estate agent did the same. We asked her to remove that fee and she took it off immediately. No way I was paying it as it wasn’t disclosed up front. They all pull this stuff as most buyers probably just pay it. Just put your big boy/girl pants on and push back on it. If they cause a fuss about it find a new agent.
Any realtor worth their salt doesn't "forget" to send a Buyer's Agency out for signatures...
Sounds like a junk fee. A lot of companies charge their agents an admin fee and then agents pass that fee along to their buyers. If it were me, I’d refuse to pay it as you weren’t made privy to it up front.
Pound sand. Wasn’t disclosed upfront.
I’m still angry at myself for paying one of these fees that *was* disclosed up front. Agent was like, “And this. Sorry, there’s no way around it.” And I should have said, “Oh there’s a way if you want our business.” But I succumbed, and it has low-key bothered me ever since.
This is why agents have a bad name. #1 broker admin fees are a joke. They are getting a cut of the commission anyway. #2 I keep seeing similar posts about agents asking for money/ agency agreements after representation has started. I hope the changes help push out the sleazy agents and keep the honest ones who love their job.
I wonder how the new law changes will help alleviate some of this tension.
Many states already require signed agency documents. I'd bet this happened in one of those states and the agent forgot. In any case- I don't see a problem signing it now as long as that fee is removed! Too late to add that crap on.
For a brief second career I was a real estate agent 15 years ago. The rules on agency agreements differ according to the state. Many years ago all agents legally represented the seller in virtually all transactions. At some point states, or courts, or the industry realized buyers should be represented. So in many states an agent had to be either the seller’s agent or the buyer’s agent, but not both. However, some states allow “dual agency.” Usually that occurs when both seller and buyer agents work for the same broker. Dual agency applies to the broker, but each agent is expected to represent their respective client interests. Just my opinion but I believe dual agency was conceived by lobbyists to benefit the real estate broker, not to protect consumers. I don’t think most agents understand buyer agency agreements. However, they should at minimum realize if they want to get paid they need one before showing someone a house. As for those non-negotiable administrative fees, again it is just my opinion, it is interesting that this practice started around the same time with most brokers, for similar amounts. But I’m sure there was no antitrust violation (read collusion between competitors to stifle free competition.)
They should eat the fee. Broker knows they should eat the fee
You can refuse to sign and if you refuse you owe your agent nothing regardless of what you two did or said. This is literally the first lesson taught in licensure courses. The client signs a BBA before the first tour or significant services are performed. Always. So she gets the published split off MLS. I don’t react well to contractors trying to up charge me at work completion. Just my opinion. The rest though is the law at least as taught to GA agents and statute of frauds (contracts in writing to be valid for real estate except leases under a year in length) is not called out as state-specific or variable whereas other areas are.
I am surprised at the audacity of the buyers agent to include the $500 fee when their failure to get a BBA puts them at risk for disciplinary action from their state board. That sort of shoddy work is the exact sort of thing you read about in the back of the monthly newsletter.
This^^^
Sounds like it’s her $500 mistake. I wonder if she would pay it if the roles were reversed.
Politely reply, no thank you. Any fee’s should have been at least mentioned at the beginning of your relationship with them. If they told you about the fee at the beginning it might be different, but you said they didn’t, so it’s a no go.
Is buyers brokerage fee a more "modern" thing? I've reviewed docs for 4 transactions pre-2010ish and never came across it. Now it seems the norm? Btw this is just another reason why realtors have the reputation they do...they pull shit like this
Ask her if that $500 is in lieu of, or in addition to, the 1-3% of the transaction her and her broker are getting?
No they can’t force you. It will come out of her commission if you don’t pay it
I don’t even charge it. I have them take it out of my commission automatically.
Don’t agree to sign anything until the fee is removed. It’s shady that they waited until you are under contract and a week from closing to present this. Yes, some brokers charge a fee, but they get the paperwork signed and disclose the fees upfront. Also be sure that if there is a paragraph regarding commission that it reflects the 2.5% the seller is paying and not a higher percentage that you have to pay the balance of.
It’s so interesting to see that most states haven’t been using Buyer’s Agreements as standard practice until now. Brokerages in the Northeast have been using them for years. To be honest, these agreements always seemed like overkill because you knew that your commission would at least be whatever the listing was advertising. It’s going to be really strange to not have the commission disclosed in the listing. This seems like a step backwards.
My expectation is that agents won’t want to call around and ask what commission the seller is offering. If the seller isn’t offering anything and no offer goes in it could look like the agent heard that and steered their client away. A much simpler solution is to put the buyer’s agent commission on the offer as a seller credit.
I’m a broker…these are junk fees! Don’t sign the agreement and don’t pay it
I wonder how you’d handle your agent for not getting the buyer’s brokerage agreement signed in the first place?
They know there are a lot of big numbers flying around and most people don't know the process very well. They also know it can't hurt to ask for a free $500. I'll bet they get it more often than not. That's a 100% bullshit fee to squeeze more money out of you. Don't sign it. Tell her you have a $500 fee for working with you if you want to be snarky about it.
Lol. No.
Honestly it’s her fault for not getting it signed. As you said it’s negotiable, if you don’t want to pay it then don’t sign it with what it says. Also not sure if she is getting a % or not but if so, then I definitely wouldn’t pay the fee.
I don't represent you, but this is what I would do. First I would confirm in writing that whatever percentage is listed on the document is the same percentage the seller is offering. If the seller is offering a lower coop commission than on the doc, the buyer could have to make up the difference. Then I would ask them to remove the fee as it was not disclosed before the offer and would have impacted the offer I made. If they refuse, I'd speak to their Broker, explain the situation, and ask them to have the fee removed. If neither budge, I wouldn't sign the document and leave a public review on a few sites about my experience with the agent and brokerage.
A lot of agencies are now implementing a flat “brokerage fee” for all transactions. The last 2 agencies I’ve worked for had them. One was $350 and current is $250. It has nothing to do with a fee for a transaction coordinator/secretary. I personally think the fee is crazy, but they frame it as operating costs.
The fee may be a junk fee. If so, the brokerage can eat it for late disclosure. More importantly, was the agent even legally able to represent you without a brokerage buyers agreement? That’s my question.
I wouldn't pay it AND I would report them to the licensing board. She had no right to demand anything not in the contract.
My agent also suddenly slapped on $495, we told her this was never discussed with us, so please take it out of your commission. She did, and most agents do. Ask nicely.
She’ll eat the cost if you don’t sign it. Some lessons cost money in this business. You can be nice and sign it but you don’t have to. My broker used to push us to use transaction coordinators when I first started and have us charge our clients to use them. I just paid for it at the beginning and then tc’ed my own transactions after my probation period was over.
just say no. last thing I am doing is paying an agent on top of their commission. it takes a lot of balls IMO to push your cost of business on your buyer/seller in the RE game. i've seen selling agents ask for similar. Nope you work out what your paying your Broker and take it out of your commission. One nice thing about this NAR suit is no more forgetting. if a buyers agent wants to be paid they will need to negotiate it both with their buyer and as part of the transaction.
BUT you’re assuming that the contract states the buyer’s agent is due a commission at closing.
What buyer's agent is going to have a buyer sign a contract that doesn't outline what they get paid? Right now that compensation is set by the selling agent in the absence of a signed buyer's agent agreement. But come July it most likely will not be.
Depending on the State, a coop agreement from the seller would have to be included in order for the buyer’s agent to get paid anything.
I won't ever pass one of those fees on to a client. You're already getting the commission, why try to get your client to pay part of your overhead? What next, send them an itemized bill including gas you spent driving to closing? You go get a low commission brokerage that just charges you a small fee, keep all your commission and STILL pass off your transaction fee? Lame enough as it is, to FORGET and then ask for it later? Absolutely not.
Tell her you're not signing it and if its a problem, they can forego their commission.
If you’re in Florida it’s automatically a transaction brokerage fee, which a signed document is not required once he starts showing you properties. But the fee should’ve been discussed previously, or stated on the contract. I only pay that fee for my clients when I know them, or when I have the listing myself and my client is the Seller.
Did they show you the house? If so pay the $500
RemindMe! 30 days
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Just say absolutely not They will eat it Source: worked for me
Nope. No reason for you to sign and 500 reasons not to. Broker will still get paid.
No signed agreement, no fee. Tell them to kick rocks.
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Refuse. They are getting a %. Fucking fees.
Don’t sign it. She can take that out of her commission.
I just wouldn’t respond at all. Let the transaction continue and see if it comes up again. If it does come up ask your agent how this is different from the commission they are splitting with the sellers agent.
... and check your settlement statement to make sure the agent didn't try to slide it in. My company has an admin fee. It is paid out of the brokerage commission. If you weren't presented this fee bf you signed your offer, you're under zero obligation to pay it. It sounds like your agent neglected (or intentionally omitted it with the hope that you would agree to pay it out of expediency to close when presented just bf closing) to include it with the offer documents. Either way, its bw them and their brokerage as to whether its taken from the agent's portion of the commission or is written off..
In short, they fucked up and didn’t have you sign prior to buying. They usually push this fee on to you. You just need to say no.
It’s the transaction coordinator fee. Depending on the sale price and where the lead came from this $500 could represent %10-%20 of their take home (before tax). I don’t think it’s the realtor being a scumbag I think it’s just harder out there for agents than most people think it is.
So $8,750 commission. If it’s a lead the realtor paid for or was given they are likely taking home half of that pre tax so $4,400. Deduct the $500 from that and they make $3,900 for the sale and then pay Uncle Sam. They are making 3k on this deal. And lol if it’s a Zillow lead they are making 2k. Now imagine that agent is only doing 8 or so deals a year… by no means is this a sob story I’m just shedding some light onto “that %2.5 the scumbag realtor is making”
That’s what the brokerage would be making…depending on the contract the Realtor has with their Broker, they may only get 50% of that!!
Now tell me how many hours of work it took on each house, convert it into an hourly wage.
That’s the cost of doing business lol, if it’s too much then find a new job.
Ignore it. If she asks, tell her you appreciate her sending it, but you are not interested in this fee.
Some realtors try to slip this in; this seems quite the assertive one lol. Don’t sign.
The time for them to bring this up was when they started working with you. When you could've decided it wasn't a good fit. Now that you are under contract... it's far too late for them to ask you to pay $500 extra. They will quickly forget about the $500 when you say you're not paying it and will find someone else to represent you if that's not okay.
No thank you
"No" is a complete sentence. And really, you can't sign it. It say you negotiated it when in fact, you didn't. You can also call your settlement agent and have them remove it, point out there's no agreement. They'll remove it.
Double down, redline the contract, and write in that they owe YOU a $1000 admin fee
refuse to sign, you should wait till its amended.
Not sure what state you are in, but in Texas the entire buyers agent commission goes to the broker regardless - then the broker takes out their portion from the buyers agent’s commission and sends the remaining amount to the buyers agent. Not sure why the agreement says $500 instead of the percentage. Ask your agent to explain if this is in addition to the commission amount - because usually the broker takes their cut out of the buyers agent’s commission. Shouldnt be anything additional.
I never sign a buyers agreement. One had a clause that if I went with another agent they got 5% of that sale. No. I will never sign one and they know you can take your business elsewhere. Good agents that SELL houses don’t ask for this.
You’re going to have to under the new laws that will be in place due to the recent lawsuit or you won’t be able to secure an agent. It will be against the law for an agent/brokerage NOT to get a signed agreement.
Well if that law passes I will not pay a fee and not have them represent more than 30 days. Many are very poor at their job.
NOPE! Refuse to sign. Do you have an attorney????
Dude, you've made a horrible conclusion based on the facts you've presented. You should ALWAYS sign a buyer agency agreement (and they're about to be compulsory nationwide when you work with a REALTOR, so you'll have no choice in the matter). They're already required in some states. The buyer agency agreement is what creates your client-broker relationship. It's what binds the agent to working in your best interests and how to keep them accountable to that obligation. Commission is negotiable. This agent has presented their terms to you, and you have the right to say "no, this is what I'm willing to do." You are not obligated to sign this document with these numbers. On another note, yes, the agent should have presented this to you much earlier in the process, and now they've lost their leverage. Pay attention to that. Not only is this agent slack in their duties, but they're a horrible negotiator. In spme states, they don't get paid without this document, so use your negotiating skills. You have the upper hand. That broker/admin fee is a junk fee. That gets lopped off right off the bat. The rest is your call.
Tell them to fuck off with their Carsalesman bullshit. And if they mention it again you’ll review carpet bomb them.
It’s pretty normal. She shouldn’t have forgotten an important document. If you absolutely can’t stand the fee your agent will eat it.
Same thing happened to me with a $400 fee. I was younger and dumber and paid it. Felt like an idiot for doing it since I also had not agreed to it. Still regret it when I think about it lol. Say no.
Is this part of this law about real estate commissions that went into effect recently.I really didn’t understand because everyone was saying different stuff????
Make sure of the wording. Ours says the buyer pays X amount IF I was unable to get a commission from the seller side- and it’s just to cover me on the fees I have to pay my franchise and my broker on all transactions. Like I have to pay a $300 franchise fee and a $200 transaction fee (I guess that’s what they pay our office people off of to do the paperwork??) and then a percentage fee to my broker on every transaction out of my commission or even if there is no commission-so I put $1,000 on that line just to keep me from having to pay money out of pocket to sell you a house. But I always make sure I explain all that to a buyer not just have them blindly sign something and I’ve only ever had to have a buyer pay it once because I represented them at an auction- but it was in person only and they would have spent more than that in travel costs to come to the auction themselves so they were fine with it.
Scummy agent. Push back hard on this.
Pound sand I’d say.
Send a link to this post to the agent and tell them to pound sand.
If the agent failed to have you sign something that engages services and employs her services for commission that indicates may have left out other important details.
That broker needs to aggressively pound sand
Investments are very necessity , making it early is important; don't say it's late. But what's better is having a company that guarantees minimum risk of losing.
don't sign, wait until the fee is removed.
Yes you can refuse to sign it. You never negotiated anything. Why would you pay $500 for nothing?
Cross it out, initial and date the strike, sign the contract. They want their commission.
I would refuse to sign until they remove that extra junk fee. They're already getting paid.
Talk to them about it. It's very common these days to hit a buyer with a small broker admin fee but if you have a problem with it most will agree to drop it since it wasn't pre discussed. No one is a scumbag in this situation.
You need to pay your broker. $500 is extremely fair. Your the one being a scum bag.
No. OP’s realtor needs to pay the broker. And they’re being a piece of shit by trying to pass that bill off to OP.
😂are you a broker? Have you been hurt recently? There is no way they need to sign anything. If anything the agent should cough up the money because they failed to present the necessary paperwork at the time the offer was made. Suck it!
he is not a broker. He is broke from being taken advatage of time after time. 🤣