Extra Real Estate Agent fees? (condo, homes, buyers)

[azkylady2]

[quote=Monster Daddy;1549347]Curtis Johnson's contract says the seller has to not only pay 6% but also an add'l $500 or so more for "expenses" that are paid at closing.

WTF? You would think the 6% is enough. Is this normal?[/quotethose expenses are all part of being a realtor, just like a hair dresser pays for her own sissors, blow dryers and tools to do her job, a painter buys his own drop cloths, ladders, and brushes, lawn care people bring thier own mowers, rakes, weed eaters,, etc etc you get the pictute, any job in some way cost you out of your own pocket, realtors get to much already, extra money to give them should they spend some advertiseing and the house don't sell? I don't think so. Thats a tough sell

[jorgitoz]

Normal? I'll be bold and say that is not as common but you do see people charging extra fees or even a higher commission. There is no standard as far as commision paid. There is nothing wrong with charging extra fees as long as they are disclosed. (they can say they'll charge you $500 for handling paperwork and give that a name like administration fee). As far as you being willing to accept the extra fees, make sure the marketing efforts are worth it. You may find other agents with no extra fees but they won't market your house as well (if they even know anything about marketing). But just because someone charges more doesn't mean they are better at marketing your house. So don't worry so much about what they are charging you, but rather look into things like their marketing plans for your house, what their track record is [how many houses they've personally sold (not the company), how close is the asking price to selling price, average days on the market], how many buyers are they working with, and your options to get out of the contract if you are not satisfied with their job.
To correct Bummer's statement, flat "additional expenses" fees are normal. Miscelaneous (aka: hidden) fees smell fishy
I hope that helps

[Greatday]

Originally Posted by Bummer

. . possibly a little UNETHICAL, but not illegal.

Gotta get picky here - a little -

It is not even the smallest bit unethical either -

[arizonanative]

Our company has a 295 fee for the contract administrator. It can be fairly common. What ends of happening for me, I end up paying for it instead of the consumer....

[Bummer]

Originally Posted by Greatday

Gotta get picky here - a little -

It is not even the smallest bit unethical either -

With all due respect, Greatday . . . YOU ARE A REAL ESTATE AGENT!

[Greatday]

Originally Posted by Bummer

With all due respect, Greatday . . . YOU ARE A REAL ESTATE AGENT!

With all due respect, I am a Broker responsible for 900 agents. I have been in the real estate industry for almost 40 years in Arizona (and other states as well). I am a member of the Professional Standards Committee on both the State level and National level. I chair Pro. Stds hearings all the time. I do Pro Stds training nationwide.

So, with all respect, what was cited is not unethical.

[Bummer]

Originally Posted by Greatday

With all due respect, I am a Broker responsible for 900 agents. I have been in the real estate industry for almost 40 years in Arizona (and other states as well). I am a member of the Professional Standards Committee on both the State level and National level. I chair Pro. Stds hearings all the time. I do Pro Stds training nationwide.

So, with all respect, what was cited is not unethical.

Excuse me, a correction is warranted, however, I was merely addressing your posted title.

With all due respect, Greatday . . . YOU ARE A REAL ESTATE PROFESSIONAL.

As an F.Y.I. and my final post on the topic . . . I posed this very question (no background information whatsoever) to five friends who are all either Real Estate Agents and/or Brokers and all except one (that's 4 out of 5) felt it was UNETHICAL as well as UNNECESSARY. In fact, a couple stated, although not forbidden, additional fees were strongly frowned upon and discouraged.

Bottom line . . . considering this is a Public Forum (read: OPINIONS) and Monster Daddy asked, "Is this normal?" . . .

[Captain Bill]

Originally Posted by Bummer

I agree, Greatday

ILLEGAL is not the correct term in this case . . . possibly a little UNETHICAL, but not illegal.

As posted earlier, anything can be either written IN or OUT of a contract prior to signing.

Actually there is nothing illegal or unethical about charging a fee. As has already been explained, the NAR does not set or control fees. An agent can charge the fee that he/she feels s/he is worth, and that fee can be negotiated or refused.

The real question is what service is being provided for the fee? If the agent is providing excellent service and gets a good price for the home, the extra fee could actually net the seller more money.

Bill

[sirwinston73]

What a joke. Not only is the 6% scam going away but you will see a major decline in the realtor profession now with the DOJ going after them and Google and other internet giants.

It will be just like what happened to travel agents - thanks to the internet they stopped getting a big % for doing nothing, and now realtors will no longer take 6% for doing next to nothing.

[Gretchen B]

Originally Posted by Monster Daddy

Curtis Johnson's contract says the seller has to not only pay 6% but also an add'l $500 or so more for "expenses" that are paid at closing.

WTF? You would think the 6% is enough. Is this normal?

Some agents/brokers will charge more; some will charge less than the 6%. Evidently some think they need additional charges for their "expenses". I guess the real question is: Can the agent justify the additional fee? For instance, if an agent wanted to charge an additional 2% commission, they'd have to show the seller that it would be worth the extra fee. Then it's up to the seller to decide if he agrees.

Nobody makes anybody sign on the dotted line. (I think that's called coercion ) If Curtis Johnson doesn't get any takers for the add'l charges, then they've shot themselves in the foot if sellers go with another broker because of it.

BTW, up here in Prescott, I haven't heard of anybody doing that; however I have heard of certain agents charging a premium commission, and I also know of some agents that ask for a flat fee reimbusement of marketing expenses (such as $500) if the home doesn't sell within the list period. Again, whether a seller agrees to that is something to be negotiated between the seller and the agent.