Extra! Extra! Read all about it! I think we have all heard that saying, but I think it may have gotten twisted around a bit in the home buying and selling arena.
If you have ever bought or sold a home, you know that the agents and their brokerages all get paid out of the commission paid by the seller at the time of closing. So that is usually two realty companies and two agents splitting that money. Here in recent years, due to the tightening of the market, I have been seeing some brokerages adding "fees" to the sellers in addition to the commission they are collecting. This is usually under the guise of an "administration fee" that is charged on every transaction above and beyond the commission they already get. The real question I have is...why? (though I think I know the real answer) Well, they will tell you that because of the all the extra work, time, and liability it takes to do their job, they need this extra "fee".
I find it odd that other companies in the same area get by without charging this extra "fee" and still manage to keep up with the work load. I also find it odd that some of these same companies also want to charge the buyers this "fee"...even when the buyers are being represented by their own agent. Is it "wrong" (legally) to tack on this fee? No! I am all for a company making a profit, so they can stay in business.
But I am also all for the free market and the power of knowledge. An informed buyer or seller is a dangerous thing to companies that overprice their product or services. You may be asking, What can I do to protect myself from this kind of thing? First, hire an agent who is honest and has a good reputation. Second, ask questions that help you understand the transaction and ALL the costs associated with that transaction. Third, listen to your agent's advice: they are in the real estate market every day, and they know what is a normal fee-- and one that is a bit out of the ordinary.
Grace and Peace...
The Geiser Team with Main Street Properties
