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Agreed. Justified is an opinion. Obviously the seller thought it justified since they agreed to pay it. In the business, hard to say. If there was a concierve or above and beyond service from the agent, such as paying for cleaning or something, I guess then it could be justified.
Unfortunately, many people just don't know any better. They might think that it's just a standard fee and not really negotiable. It's far too easy to take advantage of some people. I have yet to see a case where an additional "transaction fee" was warranted...although they may be out there somewhere. Perhaps in never-never land.
Realtors rarely get the full commission, it is almost always split between a buyer's and a seller's agent. Then their agency gets a cut of their commission for most agents.
I am not arguing in favor of the transaction fees.
Realtors rarely get the full commission, it is almost always split between a buyer's and a seller's agent. Then their agency gets a cut of their commission for most agents.
I am not arguing in favor of the transaction fees.
The commission split excuses just support hiring an indy agent instead of a corporate agent.
I will never do it, but if it is disclosed up front in a written agency agreement, and pointed out to the client, it's hard to fault the client for agreeing to pay it.
Define "agreed to it." I've never once had an agent specifically point it out. I've just been presented with the listing agreement(s) with the transaction fee included. And when I've pointed it out each time, I get the standard "oh that's not for me; the agency requires it." And then I tell them that I don't care who or what requires it; I'm not paying an additional few hundred dollars on top of the tens of thousands I'm already paying. Inevitably, the fee gets stricken from the contract. I neither know nor care whether the agent then pays it out of pocket. It's just a garbage fee added because brokers think (and probably know) that most of their clients are gullible idiots who will pay it. I'm in the process of getting ready to list and sell my third property in the last few months so I speak from experience.
I have the same issue with retail car dealerships.
Just a thought - When I worked as a Realtor, we had a "transaction coordinator" who would take care of the paperwork stream for us for a fee if we so chose, and perhaps this is what is refers to? I always handled my own paperwork, and the agents I knew just paid the TC out of their commission if they used her, but perhaps in some areas this is charged to the buyer - if, in fact, that's what this "transaction fee" even applies to.
Define "agreed to it." I've never once had an agent specifically point it out. I've just been presented with the listing agreement(s) with the transaction fee included. And when I've pointed it out each time, I get the standard "oh that's not for me; the agency requires it." And then I tell them that I don't care who or what requires it; I'm not paying an additional few hundred dollars on top of the tens of thousands I'm already paying. Inevitably, the fee gets stricken from the contract. I neither know nor care whether the agent then pays it out of pocket. It's just a garbage fee added because brokers think (and probably know) that most of their clients are gullible idiots who will pay it. I'm in the process of getting ready to list and sell my third property in the last few months so I speak from experience.
I have the same issue with retail car dealerships.
I accept your point that agents who try to sneak a fee in after contract are sleazy.
Just a thought - When I worked as a Realtor, we had a "transaction coordinator" who would take care of the paperwork stream for us for a fee if we so chose, and perhaps this is what is refers to? I always handled my own paperwork, and the agents I knew just paid the TC out of their commission if they used her, but perhaps in some areas this is charged to the buyer - if, in fact, that's what this "transaction fee" even applies to.
My fee covers my responsibilities.
If I delegate some of my responsibility to another party to save me time and effort, why should that cost my clients additionally?
Especially considering there is no net added value to the client.
Most of the time, it is a "Just because We can" fee
I will never do it, but if it is disclosed up front in a written agency agreement, and pointed out to the client, it's hard to fault the client for agreeing to pay it.
That’s how it should be done. Too often I’ve seen it snuck in. I refuse to pay it. If you don’t want to pay it you can refuse. If they don’t waive it, you can easily find someone else who will.
That’s how it should be done. Too often I’ve seen it snuck in. I refuse to pay it. If you don’t want to lay it you can refuse. If they don’t waive it, you can easily find someone else who will.
The shame of it is when the client first learns about the charge at the closing table and figures the ball is rolling and they may as well go ahead.
Many consumers, and also many agents, struggle with the closing documents.
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