[Precept]

Is it customary for buyer's real estate agent to charge buyer some sort of fee for services (on top of commissions)?
This is on top of inspections, appraisal, etc...

We're working with agent (I found him myself) and he is doing good job driving us around etc...
But still - is it norm or "invented" charge?

(Buying house near Las Vegas)

Thanks

[lvmensch]

Originally Posted by Precept

Is it customary for buyer's real estate agent to charge buyer some sort of fee for services (on top of commissions)?
This is on top of inspections, appraisal, etc...

We're working with agent (I found him myself) and he is doing good job driving us around etc...
But still - is it norm or "invented" charge?

(Buying house near Las Vegas)

Thanks

It is pretty much standard in all the bigger and well established brokerages. We have charged it for over 20 years. Many of our clients do not see it as we ignore it for deals over $250,000 or so which is most of them . What actually happens is we pay it out of the commission.

It is kind of interesting. It came about due to the rise of the power of the good agents. They basically all refuse to split with the brokerage. And there are enough brokerages where they use desk rent and not a split so the brokerages came up with the administrative commission to avoid bankruptcy.

[Precept]

Originally Posted by lvmensch

It is pretty much standard in all the bigger and well established brokerages. We have charged it for over 20 years. Many of our clients do not see it as we ignore it for deals over $250,000 or so which is most of them . What actually happens is we pay it out of the commission.

It is kind of interesting. It came about due to the rise of the power of the good agents. They basically all refuse to split with the brokerage. And there are enough brokerages where they use desk rent and not a split so the brokerages came up with the administrative commission to avoid bankruptcy.

Thanks, lvmensch.
This is $500k house. I told agent to scrap it and dont pull this on me any more. Because WTF?
You get comission from seller (which essentially is funded by the buyer anyways) and then want to penny and dime the buyer with your fees on top of it?

[longviewJoe]

I paid something like that on my recent purchase. Might have been $295 but it was something. I personally did not complain about it as it's minor and, to me, it adds unnecessary negativity between client and agent. Not a big deal either way but just my two cents. I do think Realtors should do a better job about disclosing it up front though.

[Precept]

Originally Posted by longviewJoe

I paid something like that on my recent purchase. Might have been $295 but it was something. I personally did not complain about it as it's minor and, to me, it adds unnecessary negativity between client and agent. Not a big deal either way but just my two cents. I do think Realtors should do a better job about disclosing it up front though.

Why didn't you charge broker a "finder fee"? If it's not for you - he'd not be making that commission.
Sounds fair to me.

[longviewJoe]

Originally Posted by Precept

Why didn't you charge broker a "finder fee"? If it's not for you - he'd not be making that commission.
Sounds fair to me.

I value relationships. I know I dislike people that nickle and dime with me and thus I choose not to nickle and dime others. To each his own!

[formerlynorthofnowhere]

My agent worked for that fee while I sat at home 1,300 miles away.

[OmegaSupreme]

Originally Posted by northofnowhere

My agent worked for that fee while I sat at home 1,300 miles away.

Agent gets a chunk of the commission split, usually 100% unless they work for one of the greedy brokerages. The broker then usually charges a flat fee of a few hundred dollars.

There's no need to pay a buyer's fee, a $300,000 house will get the buyer's agent approximately $9,000. Why on earth would anyone want to give them a cent more?

[Irishiis49]

Sounds tacky...the commission is their fee...their time and leg work are well rewarded...sure they have many buyers that don't make it to closing but that is the nature of the business...don't stick it to those who actually buy with you...

[Cold Warrior]

Why on earth would anyone want to give them a cent more?

Why give them even that much?