With money so tight in most real estate transactions these days, as Buyers and Sellers you want to make sure you make as much as possible when selling your home and you get the best deal on a home when buying without extra fees for buyer agent services.
As a Seller it is important to watch out for hidden fees in a listing contract. Once you negotiate a listing commission rate, some brokerage firms will tack on extra fees at the end which they call administration fees. Often this is in the form of a specific dollar amount. For example a $500 admin fee on top of your listing commission. They say it is used to pay for administration costs, i.e. filing, faxing, closing services and so many other responsibilities. The broker gets a split in most firms with the listing agent. The reason for the split is for their services and company profitability. RLT Real Estate never charges hidden fees of any type. Know what your listing contract states from start to finish, and ask about the fees that are being charged and why!
As a Buyer, most often the expense of your real estate agent services are covered as a portion of the pre-determined commission split that is offered as a part of the Seller’s listing commission fee. In other words your services as a buyer are FREE. I say pre-determined because each listed home should have a pre-set commission rate and will have no bearing when it comes to negotiating the price as to what the commission rate will be. It is pre-set. On the other hand, some agents will increase the cost of their buyer agent fees adding to the percentage that will be due them at close. This extra fee is right out of your pocket. It either comes in the form of additional closing cost expense or a higher price than what you could have gotten on the purchase price for the home to incorporate the extra fees. With RLT Real Estate, as a buyer our services are always free to you with our payment being covered as a portion of the listing commission rate. Be careful of higher fees that are expected with some buyer agents. Know what you are promising when you fill out a buyer agency agreement.
Whether a buyer or seller, be very careful to understand the contract you are signing. Know what is in the contract and what the expectation is for payment on the services rendered. …And always watch and ask about hidden admin and buyer agency fees.