As a home buyer, is it normal to have to pay a "success fee" to the realty firm (Keller Williams wants $50)?
Posted on December 14th, 2009 by admin
The realtor will be paid by the seller – 2.8%
But this fee is just an extra little success fee that goes to the realty firm. Is this normal? Is $50 high or low? I know it’s a small fee compared to the overall house and closing costs, but just wondering if it’s some BS fee or what.
This fee would be at the time of closing.
I did not agree to pay anything yet. This is listed on the realtor buyer’s agreement contract under "additional provisions"- which I haven’t signed yet.
It sounds like a BS charge to me. You have a buyer realtor who is charging a fee for finding you a property that they get a commission on? Give me a break!! Just strike off all those "additional provisions" and initial them.
December 14th, 2009 at 9:45 am
First, did you agree to pay it? As far as RESPA (Real Estate Settlement Procedures Act) is concerned if a fee doesn’t directly benefit the buyer or seller, then it’s illegal. Many offices charge a transaction fee over and above the commission and they claim it’s for maintenance of their files. BS You could probably sucessfully challenge the fee.
realtor.sailor
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I’m a Realtor
December 14th, 2009 at 10:03 am
It sounds like a BS charge to me. You have a buyer realtor who is charging a fee for finding you a property that they get a commission on? Give me a break!! Just strike off all those "additional provisions" and initial them.
References :
Ontario realtor
December 14th, 2009 at 10:40 am
Companies are trying to figure out ways to increase their profit. They think that you won’t notice a small "fee" of $50. You should always get something in return for paying $50 of your money. If it is clear what you get for $50, maybe you will pay it. If it is not clear, you should have it explained to you. Then you can make a decision.
It might be a warning to you to run from anyone who tries to "slip one by you". Unless the agent specifically called your attention to this fee. That doesn’t seem to be the case.
It is not a "normal" fee..
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