- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Answers (17)
- Sharon Lewis, "Sharon Lewis"
- Contributions:3923
I know that you posted this back in November of 2010, but my two cents worth. I moved from a big company that started to charge that to my clients. Seriously, most agents do all that work...I felt it was just another way to get their hands into my clients pockets, totally unnecessary. So say no and deal with a company that doesnt charge it.
- Michael Kornitzer, "TampaShortSale"
- Contributions:1
Transaction fees are Disgusting! If a Broker needs them then he should probably close his doors. If the Agent needs them, the Agent should find a competent Broker.
- Rick Wiedenhoeft, "St Louis Specialist"
- Contributions:6
The short answer is, you don't. The fine print is, you should negotiate that fee in or out when you first sit down with your agent. Re-read your contract and talk with your agent to clarify the details.
- Albert Hepp, "Flat Fee MLS"
- Contributions:104
I've never thought that charging a fee on top of a large traditional commission is a good thing for the home seller.
Some listing brokerages only charge a flat fee listing commission, so consider that as an option as well.
Good luck on your home sale. Thanks.
Some listing brokerages only charge a flat fee listing commission, so consider that as an option as well.
Good luck on your home sale. Thanks.
- Reuben Pacheco, "Reuben Pacheco"
- Contributions:48
Hello, A transaction fee is illegal. The secondary fee should be titled as a flat commission to be legal in CA. If you signed a buyer broker agreement that stipulates tis fee your on the hook. Good luck
- Charles Michael, "CharlesMichael"
- Contributions:3
There are varying reasons for these fees. The most common however is that this is a buyers market, many homeowners are upside down and as a result are unable to pay for some of the fees that come with real estate transactions. Most of the time the buyer is the one to benefit and this results in the party benefiting covering some of these smaller fees.
In addition, most of these fees are negotiable but worth paying if the particular home that you are purchasing is precisely what you want, and priced well. The best thing to do is ask for a written explanation of the fee and what it is used to pay for in your particular transaction.
In addition, most of these fees are negotiable but worth paying if the particular home that you are purchasing is precisely what you want, and priced well. The best thing to do is ask for a written explanation of the fee and what it is used to pay for in your particular transaction.
- John King, "John_King"
- Contributions:425
Any fees should always be discussed upfront, and in writing. Even if you're a buyer, and your agent says their services are "free", get it in writing. If there are any fees, ask plenty of questions as to why. If you agree, then great, otherwise ask them to be waived or just interview another agent. We do work you after all.
Here in Texas, "Transaction Fees" are not allowed unless they are for a service provided that is tradtionally not covered by the commission. Many used to use this to offset overhead and other expenses, while keeping their "commission" at a lower rate. But the argument is, that's why we collect a commission in the first place.
There may truly be some services provided above and beyond, which would justify such a fee, but it's a good for the broker to be sure it truly is above and beyond what they commission covers.
Here in Texas, "Transaction Fees" are not allowed unless they are for a service provided that is tradtionally not covered by the commission. Many used to use this to offset overhead and other expenses, while keeping their "commission" at a lower rate. But the argument is, that's why we collect a commission in the first place.
There may truly be some services provided above and beyond, which would justify such a fee, but it's a good for the broker to be sure it truly is above and beyond what they commission covers.
- Dan, "the_country_hick"
- Contributions:4700
As stated, you do not have to pay such a fee.
The reason they added it is some companies are not making enough profit. Instead of increasing the % they charge to sellers which would probably cause fewer listings they add it to the buyers end. I have read of some who add that to the sellers costs also.
You may know why they request such a fee. You also know why you can tell them to take that fee and (as Johny Paycheck's song said) "shove it"
The reason they added it is some companies are not making enough profit. Instead of increasing the % they charge to sellers which would probably cause fewer listings they add it to the buyers end. I have read of some who add that to the sellers costs also.
You may know why they request such a fee. You also know why you can tell them to take that fee and (as Johny Paycheck's song said) "shove it"
- Stephanie McCarty, "snellvilleagent"
- Contributions:521
Did you sign a buyer agency agreement in which you agreed to pay this fee? Was it disclosed to you when you first began working with this broker/agent? If not, protest, don't pay. There has been some discussion as to whether or not these types of fees are legal in some states. Talk to the agent's broker and get to the bottom of it. You have a right to know and you raise a good question.
- Dunes....
- Contributions:3894
@kaycyz
You do not "have to"....just be sure to use an Agency that does not charge a Transaction Fee....When interviewing ask if there is one and if there is then just walk out the door.....
There are different options to choose from and Many Agencies / Agents competing for business..THEY are selling Services/options so Shop around..Find what works for YOU
If you are already committed by signed agreement to this Agency then they should have made it very clear they charged this Fee....
Ultimately knowing what you are committing yourself to financially is YOUR Responsibility
- Dunes....
- Contributions:3894
Alex
You may wish to read this.....
What is considered spam in Zillow Advice?
Zillow Advice is a place for Zillow users to discuss real estate topics (such as buying, selling, renting, and remodeling homes) and Zillow-specific topics (such as questions and comments about Zillow features). It is not a place for advertising. Any self-promotional content that is posted will be considered spam and will be removed by a moderator. We'd also like to keep the discussions on topic. Off-topic posts will be reviewed and may be deleted. Zillow FAQ
so you can avoid this...[contact info removed by moderator]
You may wish to read this.....
What is considered spam in Zillow Advice?
Zillow Advice is a place for Zillow users to discuss real estate topics (such as buying, selling, renting, and remodeling homes) and Zillow-specific topics (such as questions and comments about Zillow features). It is not a place for advertising. Any self-promotional content that is posted will be considered spam and will be removed by a moderator. We'd also like to keep the discussions on topic. Off-topic posts will be reviewed and may be deleted. Zillow FAQ
so you can avoid this...[contact info removed by moderator]
- openup
- Contributions:104
Find another Realtor. Agents will have to deal with the economy just like everyone else and not create new fees to pass on to customers.
- Alex Milshteyn, "Alex Milshteyn"
- Contributions:1762
Hello! Some Washtenaw County area brokers are charging a transaction fee. My brokerage, Edward Surovell Realtors, we do not charge any sort of transactions fees. Our buyer's agent are truly free to our buyers. If you'd like to learn more about buyer's agent services that I can provide please call me at [contact info removed by moderator]
- XanderTeam
- Contributions:27
That is not very typical. Normally Realtors make their income from a commission from the proceeds the seller receives through selling the home.
But in this market some realtors are asking/requiring an upfront commission.
But in this market some realtors are asking/requiring an upfront commission.
- Joan Braunschweiger, "Morris County NJ"
- Contributions:1543
kaycyz, you may be interested in the discussion here.
Gets pretty heated at times and probably much more than you want to read, but I'm pretty sure it will answer your question.
Gets pretty heated at times and probably much more than you want to read, but I'm pretty sure it will answer your question.
- Larry Tollen, "Larry Tollen"
- Contributions:384
You don't, just go find another company. This is a relatively recent event and generally only done by the large national companies. It serves no point but to increase that companies bottom line at your expense. You're right they are charging a commission and the fee adds no value to your transaction. Most companies are spending less on advertising than ever. Thanks to the Internet they can get more exposure for their listings at much less cost than in the past when they counted on expensive print advertising. My company doesn't charge a fee and I'm continually amazed at the people willing to hand over $300 - $400 to a company to simply do the job they were hired to do.
- Robert Chersi, "Chersi"
- Contributions:9
I would question your real estate company about that. Remember the first rule in RE, "Everything is negotiable" .
Not all comnpanies operate the same.
Robert Chersi, Broke, Maison Realty Solutions, Inc. , La Canada Flintridge, CA
DRE #01130181 [contact info removed by moderator]
Not all comnpanies operate the same.
Robert Chersi, Broke, Maison Realty Solutions, Inc. , La Canada Flintridge, CA
DRE #01130181 [contact info removed by moderator]
Why do I have to pay transaction fee to a realtor company when they make commission?
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.