Do You Charge Buyers a Transaction Fee?

By
Real Estate Agent with Sky Realty South Austin

Recently I have been in discussion with some colleagues about a Tranaction Fee for Buyers, its not uncommon here to see a Tranaction Fee for a seller, the Realtor pays upfront for video tours, advertising in print and on the web, and for many flyers, just to name a few things.

So what does the Realtor pay for upfront for a buyer?  Well, in my case, gallons of gasoline to tour the clients around our city, printer ink and pages for MLS and CMAs, my time to do all this... break it down more and say my cell phone to call ahead to schedule showings.  How about the cost of all the classes so I can do a professional job for my clients and be informed of all the new changes constantly happening in our mortgage industry and eco-laws and local government ordinances, these all affect how and why and where a buyer can purchase.

I read in the new REALTOR.org, Sept 2008 magazine there is currently a lawsuit challenging "administrative brokerage commission" this is on page 18.  The lawsuit says it is against RESPA.  This suit is being considered as a class action suit.

At this point, I have never charged a transaction fee... I was considering it... maybe I will reconsider until this is all sorted out.

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South Austin Real Estate

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  1. Joyce Kelley 04/07/2012 04:44 PM
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class action lawsuit
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Comments 122 New Comment

Rainmaker
895,017
Tony Marriott
Associate Broker, REALTOR
Haven Express @ Keller Williams Arizona Realty

Absolutely on the same page regarding retainer fees for short sale listings.

June 25, 2010 10:18 AM
Anonymous
milew

I am so tired of hearing all of the snivelling and crying.  If you feel like a fee is needed to pay your cell phone bill that you probably use a large percentage for personal use, or you need to be paid for your time that you do MLS searches in the comfort of your home, you should have taken a career path.  Your services should be earned and not bought.

May 26, 2011 07:06 PM
Anonymous
Judy

Recent experience...  Seller did not pay a listing transaction fee.  Seller did not disclose not paying the mortgage payments to a private lender/seller and is upside down in their mortgage.  Lender paid the taxes. They were friends of sorts.  Seller did not disclose that she owed 12k in taxes on top of the mortgage, late payment fees, and now the house is listed.  it probably will mean that she has no equity...she is already making noise about paying my fee....and she will need money to close.   I have spent hours on this, and money too, to be lied to by omission and commission. Had I charged a listing transaction fee, she would have come clean sooner and not listed, and my time would not be wasted.  I may or may not get a sale and she may pull the listing.    No matter how well we do our jobs, concealment of the facts in this situation and also out and out lying cannot be accounted for.  "skin in the game" as in a transaction fee for administration fees....photographer, listing coordinator, would be a benefit to all.  I would always refund it at closing.  No loss to the serious seller.

July 22, 2011 03:17 AM
Ambassador
1,304,124
Jon Zolsky
Selling Daytona paradise for heavenly good prices
Daytona Condo Realty, 386-405-4408

We never charge any fees beyond commissions, but see it in the listings on MLS, especially when they are REOs.

April 07, 2012 05:06 PM
Rainmaker
484,301
Curtis Van Carter
Napa Valley's Broker Extraordinaire in Yountville
Coldwell Banker Brokers ofthe Valley, Yountville Napa Valley

Hi

Thanks for posting this, quite a bit of very good comments. I found it through a repost by Joyce Kelley.

Generally y not the norm in the Napa Valley but a few agents in my company starting do so onlt to have my company tell them not after the lawsuit on advise of our company attorney. cheers cvc

April 10, 2012 11:29 AM
Rainer
264,579

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