In what's become standard practice at a growing number of real estate brokerages, homebuyers and sellers are being asked to pay flat fees of several hundred dollars per transaction on top of the percentage-based commissions they've traditionally been assessed.
The fees can come as an unpleasant surprise to consumers.
Some who defend the fees say real estate brokerages need to recoup rising overhead expenses and investments in technology. Collecting a flat fee that's paid directly to the brokerage is less onerous to consumers than boosting percentage-based commissions, they say.
The flat fees have become "very widespread," with many brokerages concluding that "if they are going to continue to invest in technology, they need to increase the price" they charge for their services.
The extra charges have been labeled administrative fees, technology fees, transaction fees, web servicing fees, flat fees, and administrative brokerage commission fees.
On a transaction involving hundreds of thousands of dollars, a fee of a few hundred dollars is easily lost on clients. They are just happy to be done with the transaction, they say, 'Don't confuse me with the details.'
By Matt Carter
Source Inman News
Edited by Blogger
These fees can cost between $175-$695. My brokerage nor myself charge any extra fees. We charge a percentage of the final sale price. If I don't sell your home, you pay nothing.
--Scott Snyder 419-320-3882
Tuesday, June 2, 2009
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