Buyer's Agent - "Broker Fee" (Pittsburgh: sales, real estate)

[Doowlle34]

I just signed a Buyer's agency agreement with an agent for one of the major real estate agencies in town. In addition to a 3% commission, the agreement also provides that I will owe the agent a $395 "broker's fee" in the event that I purchase a home. When questioned about this fee, my agent indicated that "all of the agencies in town are now charging this type of fee."

I've limited the agreement to a particular area, so I still believe I can renegotiate if I were to find a house in another area. Moreover, I can terminate the agreement in 6 mos. (and but for the first time homebuyers tax credit), I am in no particular hurry to purchase a home.

Any recent home buyers out there? Is this fee now typical in buyer's agency agreements in and around Pittsburgh?

[creepsinc]

Originally Posted by Doowlle34

I just signed a Buyer's agency agreement with an agent for one of the major real estate agencies in town. In addition to a 3% commission, the agreement also provides that I will owe the agent a $395 "broker's fee" in the event that I purchase a home. When questioned about this fee, my agent indicated that "all of the agencies in town are now charging this type of fee."

I've limited the agreement to a particular area, so I still believe I can renegotiate if I were to find a house in another area. Moreover, I can terminate the agreement in 6 mos. (and but for the first time homebuyers tax credit), I am in no particular hurry to purchase a home.

Any recent home buyers out there? Is this fee now typical in buyer's agency agreements in and around Pittsburgh?

I bought a house last year, with a wonderful buyers' agent (Tamara Davis, Coldwell Banker in Shadyside). I never had to sign anything until I made an offer. However, "brokers fee" sounds pretty familiar and I think it's one of the 10,000 normal charges you get hit with when you buy a house. Signing something just to get a buyers agent sounds weird, though.

[Doowlle34]

I think signing the buyer's agency agreement is fairly common -- its a way for agents to protect themselves, so they, for example, don't show you a home and then have you contact the seller's agent to buy it through them instead.

We've come across instances where an agent will, as a courtesy, and in the hope of getting you as a client, show a home without a signed buyer's agency agreement, but most of the time they prefer a signed buyer's agency agreement to be in place before they show you a home.

[rothbear]

Sounds like the stupid fee that the various listing agents tried to shove down our throats. Something about a fee to "store" our records for the necessary length of time. We were told the same thing........"everybody is doing it". Almost gave them the answer my mother would to that statement.........you know the one about jumping off a bridge if everyone else did it??? The agents we finally signed with don't do that. I told them for $400 bucks I would store my own records!

It used to be that buyer's agents didn't exist much except for very high end properties. You found a house you liked, went to the agency listing it, saw the house, made a deal and went on your merry way. But now that the listing fee has to be split so many ways that I think they, like the airlines, are just coming up with anything they can think of to make an extra buck.

[Tinare]

Originally Posted by Doowlle34

I think signing the buyer's agency agreement is fairly common -- its a way for agents to protect themselves, so they, for example, don't show you a home and then have you contact the seller's agent to buy it through them instead.

Yeah, I signed an agreement with my agent too before going on showings. It is just to protect them from working for you and then having you screw them out of the commission. And the 3% that goes to your agent is in essence paid for by the sellers. It's not like you pay an extra 3% above your offer, it's taken from the agreed upon sales price.

[Doowlle34]

Thanks Tinare, definitely understand about the 3% fee. Checked with two co-workers who recently purchased homes with the same big agency (but different from one I signed on with), and they both stated that their broker fee was $370, but that in both cases, it was split equally between the buyers and the sellers.

[PghREA]

All the agencies have a "Broker's Fee". The amount varies from agency to agency. The seller's pay it in addition to the commission and so do the buyers. It is a standard in the industry.

[groar]

my broker's fee 2 years ago was $185, with howard hanna.

[John Tsang]

I just signed a contract with CB with the same $395 fee..

[Doowlle34]

Thanks for all of the replies -- glad to know this charge (while it seems a little gratuitous) is common in the industry.