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First, you should not be this far in the transaction and NOT know what your closing costs are. Typically, I let the lender handle that piece (even though I can provide an estimate of closing costs). If I were you, I would ask my agent to provide me with that estimate. If your agent isn't able to do that, the title company can do it also.
Second, if your state is like VA: if you plan to proceed to closing, your agent should have notified the sellers of your intentions in WRITING through an addendum removing your home inspection contingency.
Lastly, REIGN YOUR AGENT IN! Your agent is there to represent your interests in the transaction...he/she should not be making any decisions for you that are not authorized in writing. Don't ever be afraid to tell your agent what you're telling us! Hold your agent accountable!
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Originally Posted by CloudyDaysForever
I'm under contract to buy a house with cash only. I didn't ask the sellers for any closing costs. Now I'm trying to figure out what kinds of costs I will incur and how much they are, but my Realtor is being no help. I don't want to show up to closing and find out that the title company decided to charge me 50% more than normal, because they knew I could afford it, and my Realtor really wants me to use his title company (which is in the same office building as him.)
I know my Realtor told the sellers of the house I'm buying that the "Inspection turned out fine and we planned on moving forward" before I even talked to him about it! I wouldn't be surprised if he said something idiotic to the title company as well.
Under the estimate the closing company gave me, it says "Broker commission flat fee."
I talked to my Realtor about this. It was in the contract. When I first signed the contract, I guess I hadn't understood what it was saying.
It says, "Buyer shall pay Broker a commission of 3.0 percent of the purchase price of the property or $0, whichever is greater, and a broker administartion Fee of $345.00 when Buyer closes the Purchase, if:" and then it goes on to say that if my Realtor shows me a property and I buy it without using him within 6 months, I have to pay the commission, etc etc.
Awhile back I started getting unhappy with my Realtor. I should have fired him, because now I'm seeing some of the bad things that can happen. For example, he tried to get me to sign ANOTHER 1 year contract after we failed on 4 offer. I threatened to fire him. He left it alone. He claimed he lost the contract and that's why we were signing it. However, as soon as I mentioned this $345.00 fee, he emailed me a 2nd copy of the contract that he claimed to have lost.
Even though I signed a contract saying I would agree to pay this fee, I am thinking about telling my Realtor that this is really upsetting and if he doesn't cover it, I won't be recommending him to anyone.
I read the contract, twice. That doesn't mean I understood what is normal business practice or what this fee was. I know more now than I did back then.
I don't think I'd refer him anyone regardless if he paid the fee or not. On the other hand, I'll be living less than 1 mile away from him. Would you be happy to have a very irate customer living in your backyard?
2bindenver, I've seen a few of your posts. If you're a Realtor, I think you have the wrong attitude. Realtors are in the Customer Service industry. You live and die by how professional you are and how respectful you are. Sure, you can get some sales by being a bully and having the attitude that you're entitled to their business, but that is and should be at the cost of your reputation as a good Realtor to work with.
A few years ago I was hired by a small business to help them become profitable. They had a terrible customer service record. All of the business they did have was because they would have sales at extremely slim margins. After I helped them readjust their attitude, they began getting loyal customers who referred them business. Soon, they were selling more products for full price than they were selling at sale prices. The owner of the company was able to pay himself a salary for the first time in 5 years.
Under the estimate the closing company gave me, it says "Broker commission flat fee."
I talked to my Realtor about this. It was in the contract. When I first signed the contract, I guess I hadn't understood what it was saying.
It says, "Buyer shall pay Broker a commission of 3.0 percent of the purchase price of the property or $0, whichever is greater, and a broker administartion Fee of $345.00 when Buyer closes the Purchase, if:" and then it goes on to say that if my Realtor shows me a property and I buy it without using him within 6 months, I have to pay the commission, etc etc.
Transaction fees, as they're called here, are becoming more common. It's not completely out of the norm at all.
Awhile back I started getting unhappy with my Realtor. I should have fired him, because now I'm seeing some of the bad things that can happen. For example, he tried to get me to sign ANOTHER 1 year contract after we failed on 4 offer. I threatened to fire him. He left it alone. He claimed he lost the contract and that's why we were signing it. However, as soon as I mentioned this $345.00 fee, he emailed me a 2nd copy of the contract that he claimed to have lost.
You put in 4 offers that weren't accepted - were you outbid?
Who came up with the offer price on all four contracts? Did your agent guide you in any way?
Even though I signed a contract saying I would agree to pay this fee, I am thinking about telling my Realtor that this is really upsetting and if he doesn't cover it, I won't be recommending him to anyone.
Why? You signed the contract agreeing to it - just because you're having second thoughts doesn't give you the green light to threaten him.
And at this point, he's probably pretty sure you wouldn't recommend him anyway.
What alarmed me on this transaction fee was that several of my family and friends who bought houses recently hadn't been charged that fee. (I didn't use my friend's realtor who is "very good" because I had contacted my realtor first who was recommended to me.)
4 offers
First offer, seller decided not to sell. Second offer, my Realtor thought the house was incredible. I was fond of it but had my own concerns. We entered contract, inspection happened and there were huge problems. I asked for some fixes, seller refused to fix even the in-warranty broken appliance. He claimed to have been approached by another buyer who wanted to pay more than me anyways. I walked away from the table (the house was the top of my budget and needed 30,000 in work). 6 months later and that house still hasn't sold. (At one point, my Realtor tried to convince me to go back and buy that house.) Third offer, there was several bids over the listing price, house sold for 26k more than list. Fourth offer which was my dream home, was a foreclosure and we had to have the offer in by the next day. We wrote the offer, but it was written wrong, so the bank didn't consider it. That house ended up getting sold for less than my offer.
My Realtor asked me "What price are you willing to pay for this house?" Then he goes, "That's exactly what I was thinking!"
I should have gotten rid of my agent ages ago (I stopped looking for 3 months I was so unhappy). But I was afraid he wouldn't release me from the contract, and that I would miss the prime time to buy. But he still has the chance of my experience being either "Terrible" or "Mediocre."
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And at this point, he's probably pretty sure you wouldn't recommend him anyway.
I don't think so. He said that I should invite him to my house warming party (he brought it up, not me.) I also mentioned that I was going to get rid of this pile of bricks on the side of the house, and he asked if he could have them. As I said, he'll be living about a mile away.
Regardless of what some of you might be thinking, I don't want to be a total jerk. But there's also a line where you have to make a stand, or else people will fleece you your entire life.
What alarmed me on this transaction fee was that several of my family and friends who bought houses recently hadn't been charged that fee. (I didn't use my friend's realtor who is "very good" because I had contacted my realtor first who was recommended to me.)
It depends on the agent and/or the brokerage. Some charge transaction fees - some don't. You shouldn't be alarmed - it was in your original contract and, in my area at least, I'd say roughly 50% (if not higher) of agents charge transaction fees.
4 offers
First offer, seller decided not to sell. Second offer, my Realtor thought the house was incredible. I was fond of it but had my own concerns. We entered contract, inspection happened and there were huge problems. I asked for some fixes, seller refused to fix even the in-warranty broken appliance. He claimed to have been approached by another buyer who wanted to pay more than me anyways. I walked away from the table (the house was the top of my budget and needed 30,000 in work). 6 months later and that house still hasn't sold. (At one point, my Realtor tried to convince me to go back and buy that house.) Third offer, there was several bids over the listing price, house sold for 26k more than list. Fourth offer which was my dream home, was a foreclosure and we had to have the offer in by the next day. We wrote the offer, but it was written wrong, so the bank didn't consider it. That house ended up getting sold for less than my offer.
So you're on your fifth? Wow.
My Realtor asked me "What price are you willing to pay for this house?" Then he goes, "That's exactly what I was thinking!"
I should have gotten rid of my agent ages ago (I stopped looking for 3 months I was so unhappy). But I was afraid he wouldn't release me from the contract, and that I would miss the prime time to buy. But he still has the chance of my experience being either "Terrible" or "Mediocre."
I don't think so. He said that I should invite him to my house warming party (he brought it up, not me.) I also mentioned that I was going to get rid of this pile of bricks on the side of the house, and he asked if he could have them. As I said, he'll be living about a mile away.
Regardless of what some of you might be thinking, I don't want to be a total jerk. But there's also a line where you have to make a stand, or else people will fleece you your entire life.
The time to take a stand was in the initial signing of the contract - not now. This fee didn't come out of nowhere and it wasn't hidden - you provided the language and it's pretty self-explanatory.
I know you don't like it - but you don't have to like it at this point because you've already agreed to it.
AND after you have gone through 5 contracts with your Agent I would say he earned his commission.
You've had him well over 6 months and 5 contracts later and he still stuck with you through it all ...and all the submitting and paperwork and followup that has to be done, besides the time and expense he already put out for you finding properties and going to see them.
The administrative flat "fee" is not unusual in many Brokerages in addition to the commission. Yes, you signed a binding agreement and your Agent did the work. Going back on that now because you "aren't happy" is past the point.
If you were unhappy with him at any time you should have said something, but you didn't. No excuses now.
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I wouldn't be surprised if he said something idiotic to the title company as well.
