Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I heard a mega-agent "thought leader" tell agents, "If you aren't taking a transaction fee, you are leaving money on the table. It was an $80,000 revenue stream for us last year."
There was no implication of proposing to deliver value in exchange, just recommending grabbing money that was loose on the table. As a fiduciary.
That's rich. Might as well start charging clients for parking at my office.
For the record I have only seen transaction fees from franchise brokers. We independents keep letting ethics get in the way of profits.
Andrea, the transaction fee we're talking about has nothing to do with the actual closing costs you mentioned. It's a garbage fee that some agents tack on above and beyond their commission. It's nothing but profiteering. A franchise broker I started out with years ago tried to get all agents to tack an extra $395 "regulatory compliance fee" onto every transaction. Robbery, pure and simple. Homie don't play that.
That's rich. Might as well start charging clients for parking at my office.
For the record I have only seen transaction fees from franchise brokers. We independents keep letting ethics get in the way of profits.
Andrea, the transaction fee we're talking about has nothing to do with the actual closing costs you mentioned. It's a garbage fee that some agents tack on above and beyond their commission. It's nothing but profiteering. A franchise broker I started out with years ago tried to get all agents to tack an extra $395 "regulatory compliance fee" onto every transaction. Robbery, pure and simple. Homie don't play that.
Yer leavin' money on the table.
Put a tip jar by the coffee pot. Pay toilets are a cash cow, too.
That's rich. Might as well start charging clients for parking at my office.
For the record I have only seen transaction fees from franchise brokers. We independents keep letting ethics get in the way of profits.
Andrea, the transaction fee we're talking about has nothing to do with the actual closing costs you mentioned. It's a garbage fee that some agents tack on above and beyond their commission. It's nothing but profiteering. A franchise broker I started out with years ago tried to get all agents to tack an extra $395 "regulatory compliance fee" onto every transaction. Robbery, pure and simple. Homie don't play that.
I agree with you. Thanks for the explanation. I haven’t seen that a lot in my area BUT there is one brokerage with “100% commission” but they have a lot of fees they charge to the agent instead, but tell you to pass them to your customer. These are mostly transaction fees. I think it can go either way like someone else explained (Silverfall I think)...per service $ fee or % of sale price. But I see it as nickel and diming to do both.
I agree with you. Thanks for the explanation. I haven’t seen that a lot in my area BUT there is one brokerage with “100% commission” but they have a lot of fees they charge to the agent instead, but tell you to pass them to your customer. But I see it as nickel and diming to do both.
Some brokerages lure agents in with the payout of 90% to 100% of commission and then suggest/imply that the agents can pass on some of the other assorted fees to their clients. I've yet to see an agent's desk fee on a settlement statement but I suppose it's worth a try for those who are shameless enough to do the same with a transaction fee. The rest of us just pay our expenses out of the generous commissions we are already getting. No need to steal an extra few hundred just because we can get away with it.
If a homeowner sells a house for $500,000, then the real estate agent gets 3% commission from the transaction.
Is the take home amount for the agent $15,000 ? Is the commission rate 3% only in California or other states as well ?
Does the rate differ from state to state?
Commissions can vary. If the agent works for a brokerage there is some sort of fee or split that goes to the company, and the agent gets the rest. As an independent contractor, a decent chunk of that will go towards taxes. Uncle Sam taxes IC's at a higher rate, but the IC's get some offset with write offs.
I gotta spread the rep before offering more, it seems.
RESPA folks at least made firms tell some sort of whopper to justify this goosing of the pocketbook.
I heard a mega-agent "thought leader" tell agents, "If you aren't taking a transaction fee, you are leaving money on the table. It was an $80,000 revenue stream for us last year."
There was no implication of proposing to deliver value in exchange, just recommending grabbing money that was loose on the table. As a fiduciary.
Also, at $400 it's just low enough for someone to not complain about it, but enough to pad out an agent's pocket for their "honest" work.
"Oh, surprise, here's this 'fee' that you didn't know about. Pay up or this whole transaction falls through." It's a scam, just like title insurance.
Location: Sarasota/ Bradenton - University Pkwy area
4,619 posts, read 7,541,245 times
Reputation: 6036
Quote:
Originally Posted by Electrician4you
Most agents will ask for a typical 6% commission. I have personally heard some use the word standard rate. I know some agents on here will say there is no standard rate. I’m not debating that. I just have had it stated to me in such way.
Truthfully all commissions are negotiable. The commission is split sometimes 50/50 sometimes 55/45, 60/40 etc but that depends as a listing agent can offer more or less to a buyers/sales agent
And don’t forget that taxes are after the deductions. And if the agent is smart they will have a lot of deductions.
Plus we have to pay social security and medicare taxes on our income, that's always a biggie.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
