Profile picture for user347852

What is Real Estate Broker Fee? Is it mandatory in Florida?

  • November 28 2012 - US
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (15)

Profile picture for hpvanc
Everyone accept Sunny and I seems to be missing this piece of the post from KateMulligan1 yesterday:

"I was told by a Florida agent this week that a "brokers only fee" was mandatory, according to state statute."

Unless it is true of FL laws, isn't the agent that made the blatant misrepresentation guilty of a serious licensing and ethics violation? I have no issue with agents developing alternate compensation methods, and would even prefer a professional fee for services model. I do however take major issue when misrepresentations like these are made, and the industry representative turn a blind eye in their responses.
  • October 03 2013
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

If you are the buyer the fee is $0 or a very small brokerage compliance fee of some sort. If you are the seller, the bank typically will cover the realtor commissions in a short sale situation. 
  • October 03 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for CallTheSisters
When dealing with short sales and foreclosures some agents add a processing fee paid by the buyer.  $395.00 is what I have seen in my market.

It is not unethical if it is disclosed prior to the buyer making an offer. It is not illegal as agents being independent contractors set their own compensation and fees.
  • October 02 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for hpvanc
More evidence that the consumer really needs to read the real estate regulations in their state before even speaking to an agent. Agents are all too happy to misrepresent to consumers that the real estate authority has mandated what ever they are pushing in the way of services and fees. I'm sure there is an ethics violation here, that should be reported to the state real estate authority and to the local association, I just wouldn't hold my breath that either will act on it.
  • October 02 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

An additional brokers fee, although does not go to the agent, does benefit them.  Agents take a cut from their broker and most 100% brokerages make their money by having the agents charge the buyers the fee so the agent can keep 100% of their commission.  Other brokerages that charge 25% of the agents commission or even more tend not to charge this fee.  So it is possible that the fee you give to the brokerage is mainly because the agent is on a high % commission to themselves.  Not direct but indirectly making your agent more money on the deal. 
  • October 02 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for sunnyview
"I was told by a Florida agent this week that a "brokers only fee" was mandatory, "

Disappointed, but not surprised. Many buyers accept this type of statement about fees without challenging them. Good for you for knowing better and checking it out.
  • October 02 2013
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for KateMulligan1
I was told by a Florida agent this week that a "brokers only fee" was mandatory, according to state statute. Having been a Realtor in the early 90's, and admittedly only for 4 years, that sounded wrong. I looked up the statute and it never addresses fees, as I suspected. This agent told me that whatever company I chose, they would also charge that fee. That statement itself violates the law. But of course there would most likely be no penalty for the broker based on the agents comments because the real estate industry is so influential in politics. I wish these tactics could be exposed so unsuspecting homeowners could challenge these bogus charges. You pay a percentage to sell your house - which for most homes runs $10,000 or more - and then they charge you an extra fee for "file maintenance" it's disgraceful! 
  • October 02 2013
  • 2Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

No, it is not mandatory it just depends on what company you are working with. A lot of the larger companies have a "transaction fee" (typically less then $500) for a buyers agent. If you are talking about the actual real estate commission, it is negotiable but is typically 6% of the purchase price which the seller pays, buyers typically pay nothing except maybe the "transaction fee" listed above.

If you are interested in a discount on the Broker fee you are talking about, take a look at [Hotlink removed by Zillow moderator.] they are able to match you with any Broker large or small, and rebate back 15% of the commission on any type of real estate.
  • September 20 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for MsIrish0077
I am purchasing a HUD foreclosure condo in Kansas City, MO, and the buyer's agent is telling me that her broker requires her to charge me an additional fee of $295 (paid by me), over and above the split commission. Is this legal and customary??
  • March 25 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for ShaylaTwit
Depends on your Realtor's office policy.  I used to work at Re/Max and they charged a $295 "transaction fee."  If the client refuses to pay, we had to 'eat' that out of our commission.  Other offices charge their agents a desk fee rather than passing them on to our clients.  It varies.  

Hope that helps.  And good luck.  Shayla Twit, Sarasota FL Realtor
  • November 29 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for sunnyview
Not all brokerages charge fees like that. It is illegal to price fix in real estate and there is no state law in FL that requires a specific fee or set commission. If you do not want to pay the fee, then ask the managing broker to waive the fee or find another agent with another brokerage.

Brokerages are like any other business in a free market society. Some will add costs up the point that the market says no or takes their business to a competitor.
  • November 29 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Thanks, my agent tells me every broker in Orlando charges this fee of $325
==========================

every?  If this was true (it's not) then a lot of brokerages would be under some heavy heat from the FTC for price fixing and violating numerous anti-trust statutes.

If the agent lies to you now when there is no reason to, it can only go downhill; find a different agent.


all Brokers have a fee to cover costs associated with your file.
============================
yes,  it's called a commission.
  • November 28 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for craigfial
It's not mandatory but all Brokers have a fee to cover costs associated with your file.  This is charged by the brokerage and the agent does not receive any additional compensation.  We charge $395 per transactions and Ihave never had a client decline to pay it.   

If you don't pay it, the fee will be deducted from the agents commissions.   
  • November 28 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for user347852
Thanks, my agent tells me every broker in Orlando charges this fee of $325.
  • November 28 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Is it mandatory in Florida?
============
no.

  • November 28 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.