Extra Real Estate Agent fees? (Scottsdale, Surprise: short sale, leases, loan)

[Greatday]

Originally Posted by 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.

I must tell you that this "6%" thing is not a "norm" - I know - I see it everyday

I see 3/4/5/6/7 +

And, as for your comments about "doing next to nothing", it would appear you are VERY unknowledegable about what a good agent does - I can assure you that that they do a lot -

[Captain Bill]

Originally Posted by Bummer

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.

The NAR has a Code of Ethics spelled out in detail, which all Realtors are obligated to comply with. There is a professional standards committee that hears complaints regarding violations and they have pretty stringent fines for violators.

When an agent or broker states that something is unethical, then they should be willing to point out the section of the Code of Ethics that makes it unethical. If it is not a violation of the law, or of the Code of Ethics, then it is neither illegal, nor unethical.

The NAR can not set prices for agents or brokers. It is against the law. A broker may set the commissions and fees that their own aqents may charge. However, most agents are independent contractors so they can set the fee that they wish, and as long as the fee is disclosed up front and agreed on, it is both legal and ethical.

Bill

[Bummer]

Originally Posted by Captain Bill

The NAR has a Code of Ethics spelled out in detail, which all Realtors are obligated to comply with. There is a professional standards committee that hears complaints regarding violations and they have pretty stringent fines for violators.

When an agent or broker states that something is unethical, then they should be willing to point out the section of the Code of Ethics that makes it unethical. If it is not a violation of the law, or of the Code of Ethics, then it is neither illegal, nor unethical.

The NAR can not set prices for agents or brokers. It is against the law. A broker may set the commissions and fees that their own aqents may charge. However, most agents are independent contractors so they can set the fee that they wish, and as long as the fee is disclosed up front and agreed on, it is both legal and ethical.

Bill

Sorry, Captain Bill . . . you missed the "key" word in my post.

I posted . . . The five Real Estate Agents and/or Brokers FELT (repeat: FELT) the extra fees were UNETHICAL.

There was no mention of The NAR Code of Ethics, whatsoever! I was merely quoting what they FELT PERSONALLY!

With that being stated, I agree 100% with your post. All fees, including extras or specials, are "up for grabs" as long as they are clearly stated in the contract and it is up to the client to READ BEFORE SIGNING!

[Ayasha]

I recently went into the Curtis Johnson offices to see a specfic home (I'm looking to buy), and was subjected to a two-hour spiel about how fantastic they are, how all their services are free, how they save you so much money... and then it comes to the part where I have to give them a check for $544 for an administration fee.

They say that this fee is "reimbursed" by the seller of the house, when the house is sold. I'm pretty sure that's where this fee for the sellers is coming from.

I've been trying to do some research on this company to see if it's a sham, or it's really something okay.

They waived the fee for our first visit out (we looked at four homes), but if we continue to work with them (as our "buyer's agent"), we would be liable for the $544 admin fee.

Has anyone had any recent experience with them, that might either set my fears to rest, or reassure me that they're a scam?

[Summering]

I would never pay them that fee........You can go elsewhere, with some other Real Estate Office and not have that. So just don't do it. With all the offices out there in the World why would the general public put up with crazy fees....we are smarter then that!
I once was sent a contract to sign for selling our Florida condo.......it had 8% commission written. When the realtor asked me if the contract was alright with me, I told her no. I told her it was "unheard of" to ask for 8%......I changed it to 7% and initialed it......No way was I paying her more then the top going rate......which was 7.

[Kevin Beasley]

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?

First of all what are the expenses? I used to pay for inspections and repairs, termite control, etc.for an investor, then charge them back to him in escrow. He was in California, and it made it alot simpler to manage. All I did was phone in the situation to him and upon his approval I took care of it, then mailed him the reciepts so he could take the deduction. These were items that were normally the sellers or buyers financial responsibilty. Now, if the guy hit you up for gas or food or open house signage, or something lame like that, then I'd take action.

[military spouse]

We bought a house in PA about 2.5 years ago and the realtor tried to get us to pay an administrative fee of several hundred dollars (can't quite remember) and I told her I wasn't paying it. She simply removed the fee and nothing further was mentioned. If it were me, I would tell the realtor with whom you looked at the 4 houses that you've decided to go elsewhere. I would imagine the fee would be removed as they probably want to sell you a house, although it wouldn't be the first time I've been wrong...

[Kevin Beasley]

Originally Posted by military spouse

We bought a house in PA about 2.5 years ago and the realtor tried to get us to pay an administrative fee of several hundred dollars (can't quite remember) and I told her I wasn't paying it. She simply removed the fee and nothing further was mentioned. If it were me, I would tell the realtor with whom you looked at the 4 houses that you've decided to go elsewhere. I would imagine the fee would be removed as they probably want to sell you a house, although it wouldn't be the first time I've been wrong...

yea the broker i used to work for had pre stamped on the additional info line of each listing contract that if the listing agreement was canceled by the seller before the contract expired, that the seller owed the broker a 500.00 administration fee. I told him I didnt do business that away, that my clients were always free to cancel anytime and he simply blacked out the stipulation.

[Captain Bill]

Originally Posted by Kevin Beasley

yea the broker i used to work for had pre stamped on the additional info line of each listing contract that if the listing agreement was canceled by the seller before the contract expired, that the seller owed the broker a 500.00 administration fee. I told him I didnt do business that away, that my clients were always free to cancel anytime and he simply blacked out the stipulation.

It's good that your broker agreed to do that for you, because the broker has the right to set any legal fee that s/he wants, within the office, and the agents must comply with the broker's fee policy.

[Kevin Beasley]

Originally Posted by Captain Bill

It's good that your broker agreed to do that for you, because the broker has the right to set any legal fee that s/he wants, within the office, and the agents must comply with the broker's fee policy.

I hear ya Bill- Id have hated to quit and work for another broker, cause I like the guy, but I dont like doing business that way. My clients know they have the right to go with anyone they choose. But if I procur a buyer, and they fire me then we have a serious problem.