Admin Fees, Brokerage Fees, Additional Commission Fees
What are these things? Well, the truth is what they can legally be called or referred to has changed over the years. These are fees that are above and beyond the commission you are already paying a Realtor. Many companies seem to justify this fee by reminding buyers and sellers that other companies charge it as well. There are a few companies that do not charge any fees of this type; The Colorado Springs Group™ is one of those few.
In our opinion as a company, they don’t know what to call these fees because they don’t know what it’s for. One thing it does do is improve profits but I doubt we’ll ever see it called an “Additional Profit Fee”. Companies used to charge these fees directly to buyers and sellers. Then a few companies changed how they charged it by charging it to Realtors who were part of the company… with the okay and encouragement to pass it on to buyers and sellers. If the buyers and sellers agree, great. If not, the Realtor is responsible to pay for it. The real benefit for the company here is that an upset consumer is more likely to be upset at the Realtor and not the company the Realtor is with.
This is one of the big reasons we are no longer with RE/MAX. These fees were present at each RE/MAX company we were with. Now we have our own company. We paid these fees a lot instead of passing them on to clients because it felt like that would be taking advantage of people. There were some instances our clients wouldn’t allow us to pay the fee.
Here’s what we’ve heard these fees cover:
*Pays for us to hold onto your file
*Pays for the office utilities
*Pays for company staff
*Keeps the doors open
The list changes over time. The terms change over time. The amounts go up over time.
Imagine this… you’re a buyer here in the Colorado Springs area. There is a really good chance that the Realtor you are working with is going to get paid through the listing agent or builder when you find a home. How does a large fee sound as a thank you for using their services? Without you they would have no commission at all. The same thing goes if you are a seller.
For enjoyment, or to save some money please read “How To Avoid Extra Realtor Fees“.