Administrative fee paid by buyer?

[lvmensch]

Originally Posted by jackmichigan

Calling it a "business model" is a polite way to put it (albeit accurate).

It is not new. Been in use here for over 15 years. And the worst part is that the fee is not fixed. The brokerage charges a fixed fee...but the agent can augment it as far as he or she feels they can get away with.

[TimtheGuy]

Originally Posted by MikeJaquish

OP,
Was this fee disclosed to you when you hired your buyer's agent?
Or, was it popped on you only at closing?

I 2nd that. The average I see here in the MN metro is $300-400. Have yet to see one at $500 or more.

[Silverfall]

Originally Posted by briloop

I bought a house one year ago. One of the closing costs charged to me as the buyer was a $695 administrative fee payable to my agent's real estate company. The seller paid a 3% commission to my agent's real estate company. The house is in Tennessee.

I have bought houses before in other states, and as the buyer, I was never charged an administrative fee payable to my agent's real estate firm. The seller in each case paid the commissions.

What gives? Has something changed? Are buyers now being charged an administrative fee payable to their agent's real estate company, even though the same company receives a commission from the seller? Or is this peculiar to Tennessee?

Thanks

No it isn't Tennessee specific, but brokerage specific. The only brokerages in my area that charge it are national franchises.

[spencgr]

Originally Posted by briloop

I bought a house one year ago.

You bought it a year ago, and you are just now noticing or caring about this fee?