If you read anything I write as a first time, second time…ANY time homebuyer, please read this.ย
A long time ago in a fairy tale land called REALESTATE World, an edict came down from the government on high that real estate companies shall keep client records in their dungeons to document these valuable transactions.ย The office managers and brokers at some companies decided that this was quite a burden and implemented a fee called the ‘Real Estate Broker Admin Fee’.ย What a pretty name.
When introduced, the fee was a very reasonable $50.00 at closing to the buyer so that your real estate company would keep your documents safe and sound (which, we will recall, they are REQUIRED to do).ย ย Buyers somewhat gladly agreed to pay this because what’s $50.00 when you’re already bringing a bag of gold coin to closing?
The years passed and the fairy tale has become a horror story.ย It appears the real estate companies in REALESTATE World have become a tad greedy over the years when it comes to this simple little fee that started out as a way to make buyers pay for the real estate companies to hold their documents.ย Why do I say this?
Well, a few years later it appears that this simple fee has become a minor moneymaker for some, not all, real estate companies.ย A simple phone call to 5 Twin Cities real estate companies found the following fees disclosed (followed by the reason they are charged according to the person delivering the information):
Broker Admin Fee: $295.00ย (To “store information regarding your transaction”)
Real Estate Broker Fee:ย $595.00 ย (”Everyone has to pay this.ย It’s just a fee my broker charges”)
Broker Administration Fee:ย $195.00ย (”It’s a storage fee”)
Broker Admin Fee:ย $350.00ย (”This covers the cost of doing business with a company like ours”)
Real Estate Broker Fee: $395.00ย (”We charge this because we have to keep your file forever and that costs money”)
So, a few things are clear.ย This simple fee has become another way for real estate brokers to get money from homebuyers and they won’t stop until you speak up!ย ย ย Let’s face it, for first time homebuyers who might get $3,000.00 in downpayment and closing cost assistance, a ‘Broker Admin Fee’ ofย $295.00 is nearly 10% of that spent on what is at best, questionable, and at worst, a completely bogus bloated fee.
So, pay if you like or stand up and make your assistance or your savings for downpayments and fees go further.ย When you see ‘Broker Admin Fee’, say NO!ย Yes, maybe we’re the fools for not charging them (Yes, our ‘Broker Admin Fee’ is $0.00), but it just doesn’t seem like anything other than a junk fee.ย And after all, fees are negotiable.ย If you don’t ask, your real estate agent doesn’t get the opportunity to say ‘yes’ or ‘no’.ย Better yet, you don’t get the fun of finding out if they even know what this fee is for!
You make the call and stay tuned for the next ‘Return of the Killer Fees’!ย ย RW