My realtor charging $395 admin fee?

[victornewman]

Is it normal for a real estate agent to charge a $395 admin fee to the buyer they represent? She is saying it will be included in my closing cost and that it is a fee that is charged by her team.  (I'm assuming she means broker)

I am a first time buyer and so I am just making sure this is a normal thing.

[Anonymous]

As a first time home buyer I asked my realtor the same question when I saw the fee on my disclosures.  What she said was this fee is payable to the office (Broker) as by law they have to keep copies of the sale paperwork for seven years (At least in my state PA).   I don't know how true it was, but with only 24 hours until closing it was the least of my worries. 

[JVille]

I call BS on this! This agent is splitting the commission with the Listing Agent and is getting a several Thousand Dollar commission.

Not, No, Never and NO.... what state are you in?

[JVille]

Tell your REcAgentbto Pay the Fee herself out of her Commission!
Was this disclosed up front and did you sign anything and if you did sign for this was it brought to your attention and explained or was it buried deep and hidden? Frankly at closing I would just “Say No”. And had I known about it up front I would have gotten a different RE Agent who would pay this to her office out of her own pocket.

[victornewman]

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@JVille wrote:
I call BS on this! This agent is splitting the commission with the Listing Agent and is getting a several Thousand Dollar commission.

Not, No, Never and NO.... what state are you in?

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Thank you so much for your response.  I'm in Texas.  I know $395 isn't all that much, but these type of junk fees can add up when it comes time to close. 

I just kind of feel that because I am so naive to the home buying process that I could very easily be taken advantage of without knowing it.

Thank goodness I have a place here on myfico to get advice. 

[JVille]

When & Where was this disclosed and did you sign acknowledging this fee? Because if it’s not agreed to in writing Say No!

[victornewman]

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@JVille wrote:
When & Where was this disclosed and did you sign acknowledging this fee? Because if it’s not agreed to in writing Say No!

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I haven't signed anything agreeing to the fee

[JVille]

Then tell her she is free to pay it herself. My daughter is a Realtor and she pays a transaction fee for every deal. The Buyer never pays. So say no... wonder if she would have rather you chose another agent to write your purchase agreement?

[JVille]

The Commission on the selling side is clearly disclosed on the Final Purchase Agreement. It is anywhere from 2.5 to 3% (maybe more) to the Selling Agent. The Listing Agent gets a similar amount.
Did you sign a Buyers Agent Agreement? If you did they may have hidden that fee in that document. Sleezy!

[CreditInspired]

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@victornewman wrote:

Is it normal for a real estate agent to charge a $395 admin fee to the buyer they represent? She is saying it will be included in my closing cost and that it is a fee that is charged by her team.  (I'm assuming she means broker)

I am a first time buyer and so I am just making sure this is a normal thing.

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When I was a Realtor in early 2000, an administrative fee was disclosed in the Exclusive Buyer Representation Agreement, which was negotiable. If you did not sign such an agreement, then no, you do not have to pay the fee and you can refuse to do so at closing. However, as a Realtor, I noticed that people just don't read the contract -- they scan the pages -- so I had to make sure that I went over the fees in full.

Now, when I purchased my home in March of this year, I used Coldwell Banker whose administrative fee was $450. As anything else, these fees are negotiable. And I negotiated mine to $0, which was accepted. 

I must say though, when I got my closing docs to review 2 days ahead of closing, there was the $450 fee on there as big as day. Sending over another copy of my signed buyer agreement showing Coldwell Banker had waived the fee was all I needed to get it removed.