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Posted on November 17, 2020 – 10:22 PM by Jamie Zimmerman

You are selling your home, and you contact your real estate agent friend. You sit down with your friend and find out you will pay the commission fee. Your friend informs you that your closing cost will be about 8 to 10% of your profit. You are okay with hearing this and feel good trusting who is selling your home. In today’s market, depending on the price of your home, your home will sell quickly if it is priced appropriately and the home is show-ready.

Your home sells over the asking price within the first week on the market. You are so happy with how everything is going. Next, you will get your closing statement from the title company. You understand that the Real Estate agent is taking a decent commission, but you see another fee. It may say administrative fee or broker fee. You question the fee of $150.00 to $1000.00, depending on your state/company. You are told it is a fee the real estate agency/company is taking on top of the commission fee.

How does this make you feel? You want to walk away but think it’s only $300.00. I don’t want to start again, so you pay the fee. This has happened to many people I know, including myself.

I have also seen homes listed with a company without a fee. However, the buyer’s agent company has an administrative fee. In that instance, the buyer should pay the fee, not the Seller.

This fee can possibly be waived, or your agent can also pay it themselves to their broker. Not all Brokers have this fee—a lot of them don’t—so you will not have this surprise fee at closing. This is a big question to ask before listing your home. I am grateful to be a part of a company that doesn’t charge this fee.

If you have any questions, feel free to contact me. 

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