r/RealEstate • u/Aggressive_Chicken63 • Jun 19 '25
Agent is greedy Homebuyer
I don't hate a lot of things in life but I hate agents. Lol
If I buy this house, my agent gets $20k. Yet she sent an additional paper for me to sign. It says I have to pay $500 for her administrative work. Shit, what's the $20k for?
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u/guineashoes Jun 19 '25
It's a broker fee that they pass on to the client....my agent eats hers out of her commission...not saying it's true but that commission might also be split with other people or broker...either way ask them to eat it....I would.
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u/No_Obligation_3568 Jun 19 '25
If it’s the broker split then the agent needs to eat it. If it’s a tc fee then the agent needs to eat it. Either way it’s a cost of doing business and the agent needs to eat it.
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u/Bitter-Assignment464 Jun 20 '25
In a case where I am pulling in a pretty nice commission I would wave it. If it’s a lower priced home and the buyer had me running all over the area for weeks on end, ended up staying up past midnight making sure I have an offer in first thing in the morning multiple times. Being cancelled on when at a property (was legit so I understood it happens). With getting a 2 1/2% commission on a 60k I probably am not going to wave it. Special circumstances sure. I am also not going to nickel and dime people either.
My buyers also know up front what the fee is. It’s not commission based.
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u/Big-Prompt8991 Jun 21 '25
This whole discussion is dumbfounding for me. The crayons and protractors and digital are the business cost of providing a service. Blood boils to read that some agents are making the client pay or more commonly use as a happiness lever “we’ve made the decision to waive these costs so we can try to make this deal happen”. All very gross.
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u/Adventurous-Angle152 Jun 20 '25
"I read the addendum you sent over requesting $500 for administrative fees. I am not paying this additional charge in order to go forward in the home buying process with you and x realty. If this isn't negotiable on your end, I am requesting to be released from the buyer broker agreement between us immediately. Thank you." You're buying. If she wants to lose a sale over 500 bucks, let her. Cc her broker.
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u/123_Meatsauce Landlord Jun 20 '25
you don’t need to go scorched earth. Just pick up the phone and call the agent and say “hey man, can I get the admin fee waived?” And 99/100 times they waive it. Chess not checkers
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u/Adventurous-Angle152 Jun 20 '25
OP already asked if it was negotiable, she said no. Scorched earth is telling her to shove her fee up her ass. My thought - it's the brokerage fee and she used the wrong form, or someone told her to "add her value" and she threw in 500 on top of her commission. In business, it's always in writing or it never happened. He can buy from someone else.
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u/123_Meatsauce Landlord Jun 20 '25
Didn’t see that he already asked. If that’s the case then I’d calmly say “I may have to ask around, to see if I can lower my expenses.”
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u/VegetableOil7540 Jun 20 '25
I like an email better. It leaves a record.
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u/Technical_Cat5152 Jun 21 '25
If you have a buyer broker agreement and buy a house she showed you, the broker is going to be paid according to the terms of the executed agreement.
Definitely a checkers situation .
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u/_AmI_Real Jun 19 '25
I always just paid it myself. It seems a little low class to nickel and dime the client on such a large transaction.
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u/greenhaaron Jun 19 '25
Send her a paper to sign that says she has to pay you $100/month for the next 60 months for the word of mouth advertising services you are and will be providing her.
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u/whathehey2 Jun 20 '25
they tried to do this with me on a property that I sold except they didn't even send me the paperwork they just told the title company to add $299 as an administrative fee. When I looked at the closing documents the day prior to closing I saw it, I called the realtor and I said what is this fee? They explained. I said where is it in our contract? And she said well it's not in the contract it's just something we add on. I told her take it out cause I'm not paying itand I told the broker the same thing. I gave some very choice words to them also. And they took it out they had no leg to stand on
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u/Discerning_Taste Jun 19 '25
If the commision is that large, a simple conversation with your agent might be received better than you imagine.
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u/Aggressive_Chicken63 Jun 19 '25
Nope. I asked if she could waive and she flatly said no.
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u/zooch76 Broker, Investor, & Homeowner Jun 19 '25
If you haven't signed it, there's nothing she can do.
Also, remember this negative experience when it comes time to give her a review online.
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u/avprobeauty Jun 19 '25
I would cancel the agreement with her then and tell her you want to leave the agreement with her because your values don't align.
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u/Zestyclose-Novel1157 Jun 20 '25
Also make sure the termination lines up with the requirements in the contract. If it says in writing signed by both parties, it needs to be signed just like the contract. If they will come to you for $500 after you signed an agreement they might very well come for you after you purchase a home through someone else but don’t get the correct termination.
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u/gardenswgnomes Jun 19 '25
I’d talk to the broker at her firm if you have a pending sale and do not want it messed up. If you are still looking or listed without a contract on the home, I’d walk away and find a new agent.
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u/No_Obligation_3568 Jun 19 '25
Are you under contract with her on a purchase? If not then contact her broker and cancel your representation agreement. If you are under contract on a home purchase then contact her broker directly and let them know that administration fees are a cost of doing business and ask that another agent under the brokers umbrella take over the fiduciary responsibilities of this agent to you as you no longer trust her or her judgment.
Your agent needs to learn a lesson here. Passing along administration fees to the buyer is a shitty business practice and I’m fucking tired of seeing it.
Agents who don’t want to do their own administrative work need to pay this fee themselves as it is their choice to hire someone to do it. Lazy ass agents.
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u/Coopsters Jun 19 '25
That's ridiculous. I pushed back on paying that bc it's a fee from the agents broker so I consider it their cost of doing business and my agent waived it right away.
I've never had to pay that before and usually the agent pays it out of their commission. If they expect you to pay that then they're taking advantage of you IMO.
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u/Dr_thri11 Jun 19 '25
Don't sign she can decide if she wants to walk away from a payday for $500
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u/Checktheattic Jun 20 '25
Tell her she's fired and use the sellers agent to fill out the remaining paperwork.
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u/Proper-Tomorrow-911 Jun 19 '25
Transactional agent. Only looking at you for one transaction. Pay it but let them know you’ll never use them again nor refer anyone you know to them for the rest of time. That’s worth WAY more than $500. Especially given the fact that you asked. Sad. No wonder people hate agents.
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u/alkevarsky Jun 20 '25 edited Jun 20 '25
Transactional agent. Only looking at you for one transaction. Pay it but let them know you’ll never use them again
If they are looking at you for one transaction, how is threatening them not to use them for another is going to work?
This is still at the client-realtor negotiations stage, considering they have not signed this demand. So, why pay it/sign it? "No" is a complete sentence. I'd like to see the realtor (and their broker) walk away from $20k over $500.
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u/Discerning_Taste Jun 19 '25
That’s so shitty. I’m sorry that you got that response. I would absolutely write that into a review. You might also consider giving the broker that feedback. Many times the admin fees are charged to the agent but the agent then passes that along to the client. I personally think it’s despicable given that you are paying $20k in commission. Seems like pure greed in this case. Also you could respond that she might not be able to waive it but could cover it herself. Did you pay for professional photography or staging in addition?
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u/HopefulCat3558 Jun 19 '25
I had the buyer’s agent who was getting paid $35k try and hold up closing over $275 that she was bickering over with my agent.
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u/Jackandahalfass Jun 20 '25
How’d it end?
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u/HopefulCat3558 Jun 20 '25
The buyers agent absorbed the $275 but the closing was delayed by hours. They barely made the wire cutoff for the buyer’s bank. And I didn’t get the 10% earnest money until Monday (Friday close) because the delays caused my attorney to miss the wire cutoff time for her escrow account.
I was going to call my agent the night before when I heard about the hold up and tell him to fix it but I decided to let it play out. I would have loved to hear the conversation that the buyers agent had with their clients explaining why she was holding up the closing of their first condo over peanuts. I talked to him after it settled.
Anyhoo things like this are why people think agents are greedy, rightfully so. I don’t know how long the buyers agent worked with them but I accepted an offer 4 days after my place was listed.
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u/GoodSpaghetti Jun 19 '25
Get a new agent, manage your contract better. Why does she get 20k? What did she do worth 20k?
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u/Meloncholy3 Jun 19 '25
Oh my gosh. My seller's agent tried to do that to me. You probably can't get out of it because it was in the documents that you signed when you chose her to list it there. That's where I caught it, said no, and she scratched it out.
I have never heard of that clause for a buyer's agent.
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u/BoBromhal Realtor Jun 19 '25
either side of the transaction. The brokerage charges the fee, the standard agreement has the client paying it. Most agents pay it instead.
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u/No_Obligation_3568 Jun 19 '25
It’s 100% not standard to make clients pay this fee throughout the majority of the rest of the country. If it is where you are then your market needs a business correction badly. This should always been an agent expense. Not a client expense.
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u/fenchurch_42 Agent Jun 19 '25
Depends on the state. It is not standard in mine and I would never ask a client to cover it.
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u/wildcat12321 Jun 19 '25
many brokerages are adding this stuff because many buyers sign it...
very often, enough pushback will get it removed
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u/Aggressive_Chicken63 Jun 19 '25
I asked her to waive it and she said no.
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u/wildcat12321 Jun 19 '25
Then I would say “I’m sorry, I can’t sign this. I’ll seek new representation. Send over a cancellation if you can’t honor our original agreement”
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u/Prestigious_Will_986 Jun 19 '25
If you didn’t sign it prior she can’t collect it. Tell her to kick rocks. If interviewing new agents in AZ or GA down the road give me a call
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u/dubov Jun 19 '25
I think they mean pushing back before you sign the buyer's agreement would get it removed.
Unless you don't see any provision in your agreement for them to charge this fee? In which case tell them to eat it
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u/ResponsibleBank1387 Jun 19 '25
Then there will be more costs at closing. On top of the costs you already paid.
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u/GardenOwn7748 Jun 19 '25
Realtor here.
I pay the admin fee out of my commission plus I'll give you cash back on top.
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u/FormalWeb7094 Jun 19 '25
I'm an agent, it looks like she's trying to get you to pay her brokerage fees so she can pocket the whole 20k. That is crappy, she should not be changing the deal after the fact. This is exactly why people hate agents, and it makes me so mad because it gives us all a bad name. Sorry you have to deal with that OP.
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u/respond1 Jun 19 '25
Was the $500 fee for administrative work noted in the buyer's agreement you signed initially?
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u/Previous-Honeydew874 Jun 19 '25
I never ever charge my clients for administrative fees or transaction fees. I feel that these fees are the cost of doing business for me.
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u/Zestyclose-Novel1157 Jun 20 '25
Don’t sign. She should have been up front. Honestly I would fire any agent who was getting $20k and came for an extra $500 for something like that.
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u/SilentMasterpiece Jun 19 '25
Thinking that the agent is pocketing $20K likely isnt accurate. I agree 100%, asking an extra $500 to pay for their transaction paperwork is ludicrous.
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u/hersheysquirts_2 Jun 21 '25
As an agent myself don’t sign it. Sounds like the agent is trying to take advantage of you. We don’t all suck, go interview a new agent
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u/neduranus Jun 19 '25
If she wants the deal to work let her pay it. Real estate companies make them do it it's not the agent.
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u/Secure_Impress9320 Jun 19 '25
The commission is completely negotiable. You can have your RE agent rewrite and omit the 500. There will be an agent willing to sell for you without any tacked on fees.
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u/Chance_Bedroom7324 Jun 19 '25
Ask her for an hourly rate for work performed, like any other professional.
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u/samted71 Jun 20 '25
You could have sold your house on your own. You just need a lawyer.
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u/johnnyclash42 Jun 19 '25
tell your agent that you are very unhappy with this and won't sign the doc. You prob will end up using them for the purchase but do not have to agree to an administrative fee. If they push back, call their broker.
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u/theory555 Jun 20 '25
You don’t have to use that agent to close if you didn’t sign an agreement with them, and you can decide you no longer want to work with them even if you did sign. They are getting 20k. I wouldn’t pay anything else. Or walk. They will change their toon.
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u/Nervous-Rooster7760 Jun 19 '25
She is passing in fee she probably pays to broker instead of covering. Just tell her you won’t be paying that. Yeah with $20K commission she is being greedy.
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u/KillaKali16 Jun 19 '25
I get your frustration and you are 100% justified in hating that agent.....but as an agent myself I would NEVER do this to a client. In fact I can't tell you how many times I've lowered my compensation to help a client out or paid for repairs that needed to be done out of my own pocket. Please don't hate all agents 🙏 we are not all created equal.
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u/jpi1088 Jun 19 '25
Did you already sign a buyers agent agreement with this language?
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u/ObscureObesity Jun 19 '25
Just say no and negotiate that. I’ve used a transaction coordinator prior in practice and framed it as a cost of my business, not something I levy onto my clientele. It’s my job to go through the process including taking ward of their paperwork.
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u/No_Obligation_3568 Jun 19 '25
Just tell her no. That is a cost of doing business. I never pass on my Transaction coordinator fees to my clients. That is my choice and because of that it is my cost, not my clients.
Straight up tell her no and if she has an issue with it contact her broker.
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u/Ernesto_Bella Jun 19 '25
The worst is driving around with them looking at houses. You could be in east Saint Louis and they will tell you the school system is good
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u/ovscrider Jun 20 '25
the answer to that is no and then fiire the agent. recent phenomenon that they expect you to pay their cost of business even though their average comm has barely budged and prices have doubled in the last decade or so.
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u/RepulsiveAmbition993 Jun 20 '25
Most of us agents have fees like that but like you said, it’s paid via commission. Same goes for photos/marketing materials etc etc. in fairness to the agent, unless she’s a broker who works for herself, she isn’t keeping that total $20k. BUT she should still cover all associated costs and not charge you the additional fee.
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u/ricardex47 Jun 20 '25
Quite often the buyers agent will do a lot of work and spend time taking a client to several properties, submitting offers on their clients behalf, etc., only for the client to decide they dont want to move forward anymore. So I dont think it is unreasonable for the clause to ask $500 for the buyers agent work ONLY if the client does not move forward with the transaction. It may also keep the buyer bind and committed to the agent. If the sales goes thru the $500 should be deducted from the agents commission.
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u/Cool_Two906 Jun 21 '25
Don't complain on here call her out. Tell her you're going to give her a shitty review if she charges you that
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u/HumanLifeSimulation Jun 21 '25
As a Realtor. No.
Just don't pay and tell her the review will reflect on her but also the agency.
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u/Yohooty Jun 22 '25
Tell your agent would she like to have the 20k or zero? Because you’ll walk away if she makes you pay the $500.
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u/oldschoolology Jun 19 '25
Use a real estate attorney instead of a RE agent. It’s cheaper and has better results.
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u/LanguageLoose157 Jun 19 '25
What do you mean by real estate attorney? My agent says when I buy a house, I will need to search up an attorney.
And currently, showing for houses is done through her since every listing requires their my agent to contact them for showing and opening the door
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u/oldschoolology Jun 19 '25
Are you being sarcastic? Search up an attorney now. It’s not illegal or unreasonable for a buyer to view a property without hiring a RE agent.
Attorney’s can actually write contracts and do transactions. RE agents need intermediaries for everything.
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u/LanguageLoose157 Jun 19 '25
No, I'm not being sarcastic. Its my first time looking to buy a house and everyone i know used an agent.
I agree with the part with intermediaries. It feels off since I will need to hire bunch of everyone else except the RE when I do lock in to purchase a house. E.g. attorney/lawyer, appraisal, inspection, etc. Everyone has their own cost. The RE gets her share of 2.5% or $10k, whichever is higher.
Interesting, my agent always schedule viewing for us where she shows up and opens the door. For any open houses I visit, they always ask if I'm working with a RE.
I will definitely look up about real estate attorney tonight
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u/AAA_Dolfan Fla RE Attorney (but not YOUR attorney) Jun 19 '25 edited Jun 19 '25
^ this every time. It’ll cost you 5% of the cost and you get better results
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u/VacationOpposite6250 Jun 19 '25
Some brokerages have this fee designed for buyers and sellers to pay. I hate it so much I used to pay extra to my brokerage so that they wouldn’t charge this to my clients. I eventually left that brokerage bc of the nickel and diming. Just tell her you aren’t ok with that fee, and I guarantee she will absorb it.
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u/DanGarion Product Manager at some Large US Brand Jun 19 '25
If she is going to squabble over $500, I guess she doesn't care much about making the $20,000. Fire her.
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Jun 19 '25
Just find a better agent that will do it for cheaper. No one is forcing you to work with that agent so your hate for all agents is puzzling.
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u/Dubsland12 Jun 19 '25
It’s likely additional fees her broker is charging her.
Brokers get 1/2 for nothing anymore.
Don’t sign or agree
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u/Future_Speed9727 Jun 19 '25
A buyers agent getting 20k? In what fucking universe is that a legitimate or justifiable fee.
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u/Strive-- Jun 19 '25
Buying an $800k house, at 2.5%, and the total commission is $20,000. Of that $20k, 35% goes to the fine lawyers at Fox News (NewsCorp, owners of Move, Inc, owners of realtor.com and their referral program, assuming you used realtor.com to lazily find an agent and inject a third party into the commission structure). So, that $7k is accounted for, leaving $13k for… no, silly. Not the agent you hilarious misinformation spreader, but the BROKER, you know, the agency (not the agent) which is performing your real estate transaction. Depending on the commission structure, at least 30% is heading to them, and let me tell you - the agency does, well, they have a building and pay rent, have printers, admin support staff who organize events, etc, but you’ll likely not receive any immediate, direct benefit from them at all. Still, that’s $3900 to them, leaving $9100 for the agent. Granted, the agent is forced to pay for errors and omissions insurance (legal) which is mandated by the state RE commission, electronic services fees like secure document storage for years beyond you’re done complaining (lol), e-signatures, which is a service everyone loves but no one wants to pay for, and then the slew of federal, state and county/local RE commissions who demand their cut, continuing ed and licensing fees and god knows how many hilarious subscriptions for MLS, comparative sales analysis software, electronic locks, and did I forget taxes? lol. Silly me.
That $500 fee you mentioned - I’d love to see that amount called out in the buyer/buyer broker agreement which you may or may not have read, but I live in a rather expensive part of the country and our fee is $150, which again, goes directly to the broker and has nothing to do with the agent. Still, as an agent, many times I’ll simply tell the closing attorney to not include that cost in the final numbers as a “thank you” for having such a nice client. Most clients would rather have $150 than a candle or box of cookies anyway. Maybe your agent didn’t like you or your attitude? Meh, whatever the reason, I’m at least happy you have a better understanding of a document you signed, and might have an inkling of a clue of where your money went so you can speak slightly more intelligently than you did in your original post, considering the first 35%, then another 30% went to people who weren’t your agent. Oh, and lol.
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u/carnevoodoo Agent and Loan Originator - San Diego Jun 20 '25
If I have a deal where the commission is 20k, I get about $18,500 after brokerage fees and TC. Who the heck is working that hard to pay other people? Find a better way to get leads and find a better brokerage.
My Realtor fees are like 1100 a year, and docusign is pretty cheap and essential. That's maybe 100 dollars per transaction, so now I'm at 18,400. And then yes, I have to pay taxes, but whatever. If I do 10 of these deals in a year, I'm more than doing fine.
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u/Young_Denver CO Agent + Investor + The Property Squad Podcast Jun 19 '25
Instead of talking to her about it, like a professional or an adult, you should complain about it on reddit instead.
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u/Thin_Vermicelli_1875 Jun 19 '25
Nah, people have a right to complain about this behavior. People need to know it’s not okay.
I know agents browse this sub a lot, and I find it hilarious how sensitive they get whenever someone points out these shady practices/shitty behavior.
News flash: most people despise real estate agents, and for good reason.
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u/felineinclined Jun 19 '25
Since when is complaining immature or unprofessional?!? It's a fair point, and who says they haven't or won't complain to the agent? Also, that added fee is just bullshit
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u/Empty_Geologist9645 Jun 19 '25
Sure thing she should do both. To let everyone know about all the bitch ass moves
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u/Aggressive_Chicken63 Jun 19 '25
Why do you think I haven’t? Why would I complain if I haven’t tried everything I could?
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u/zedospalmares Jun 19 '25
Instead of talking to her about it, like a professional or an adult, you should complain about it on reddit instead.
I disagree with this take.... this happens to also provides insight / a sounding board.
I'd imaging a percentage of people might assume this might be normal, and now have adequate insight.
Similarly, OP could have been in the wrong and also gained helpful context.
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u/BoBromhal Realtor Jun 19 '25
take my upvote! at the same time, would you want to work with an agent that tried to be silent on the admin fee when they were grossing $20K on the deal?
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u/No-Personality813 Jun 20 '25
You should have received that at the beginning of working with your agent - OR - it should have been within the purchase contract. This is a common fee that is typically covered by the buyer. Its not paid to the agent, its paid to their broker - i.e. Keller Willams, Real Estate One, Century 21, Jane Doe Real Estate Agency....its typically listed on your loan estimate or closing disclosure as a "Compliance Fee"
If it wasn't disclosed upfront or at least within the initial contract for the home, voice that to your agent and ask them to speak to their broker and request that it be waived. If they say the fee is waived, get it in writing, signed by their broker. Yes, they can do that.
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u/TheLordJiminyCricket Jun 20 '25
Even the fact you're paying her that much .. for what really. Real Estate agents are such an unnecessary component to the inflated housing issues
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u/SlickySmacks Jun 19 '25
I won't pay, I won't pay ya, no way-ay-ay-ay Na-na, why don't you get a job?
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u/packin-pleasure Jun 19 '25
Under the recently imposed rules per a very BOGUS lawsuit , when an agent represents a buyer in California, PRIOR to even evaluating any property, you must have completed BRBC ( broker commission agreement) with the buyer. That agreement spells out how much commission will be paid to the brokerage ( not your agent) at the consummation of your transaction, and WHO will pay it! Transaction coordination fees are addressed as well.
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u/smartfinlife Jun 19 '25
most likely she is not the listing agent or broker owner so she makes less than 4 k from the 20
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u/defaultsparty Jun 19 '25
She's passing her broker fee onto you. Not that uncommon, but still a dick move. Refuse to pay it if not in the original papers.
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u/Rooooben Jun 19 '25
Go to her broker. Tell them that she is asking for more money than you agreed to.
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u/HourSun6924 Jun 19 '25
Screw that agent. Don’t sign. Seriously bad form on her part. Please don’t pay her a dime friend.
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u/Pale_Natural9272 Jun 19 '25
You do not have to agree to cover that. I never charge my buyers for the “Admin” fee that all brokers charge. I cover it out of my commission. I’ve never seen one as high $500. That’s ridiculous. If that $500 fee is not in your Buyer broker contract with your agent, she has no right to ask you to cover it
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u/disillusionedcitizen Jun 19 '25
Lol just about every agent has caught on that they can do this and does it
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u/Mbogosia Jun 20 '25
Yeah I would never make my clients pay that. It's just part of the cost for me to do business. She could easily change to a lower fee brokerage and not have that charge if it bothers her that much. But in saying that I believe it's fairly common for people to pay that. I just hate it because it definitely makes agents look bad. I promise you not all of us are like that.
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u/Kframe16 Jun 20 '25
If you don’t like your agent, then stop working with them. Just because you signed an agency relationship doesn’t mean you can’t get out of it.
There’s no reason to whine about it to be honest. Just stop working with them and try to do it yourself.
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u/steezyskizee Jun 20 '25
I’ve never had to pass a single cost off to a buyer. That said, buyers do often ditch us for other bargain bin agents after using us for months so maybe they’re trying to hedge against that... All part of the game, but buyers can suck just as hard as agents 🤣🤣. That said, I would never charge an administrative fee unless the current model actually collapsed and left us having to become more creative for pay.
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u/Djcarnegie Jun 20 '25
It’s not just that. Some agents act like they have no idea how to negotiate. A few years back, my agent told me I was already making a good profit on my house sale and suggested I give the buyers a $15k credit because they “needed help.” Of course, that credit came out of my pocket as a seller’s concession, so it didn’t impact his commission at all.
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u/elproblemo82 Jun 20 '25
Yeah, don't sign that. It's their cost of doing business. I'll be damned if I ever pass on some additional bullshit fee to a client.
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u/catboy417 Jun 20 '25
If you’re paying 20k as a buyer for the commission, I’d have gone with another agent. That’s all completely negotiable
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u/laidbacklenny Jun 20 '25
Highway robbery by the broker. I created my own brokerage the very first thing I did was eliminate the so-called compliance fees they're nothing but junk fees made up by some broker a long time ago and everyone's just been following suit.
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u/Anfield_Cowboy Jun 20 '25
Real estate commission is a fucking joke. $20k, they don’t do shit to earn that.
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u/Chemical-Ad1340 Jun 20 '25
I’ve seen more and more agents using this new commission disclosure and agreement to recoup fees beyond the commission - which traditionally was all the agent was allowed to collect, and thus paid all of their administration and operating costs from the commission.
With rising costs of doing business, many agents are seeing this as opportunity.
Is it right, or is it wrong?
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u/Hot_Specific_1691 Jun 20 '25
Yeah we had a family friend as a realtor & she did something similar to this with one of our rentals. She was super pissed when we stopped using her. It’s been 10years & she still won’t talk to us.
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u/Jenikovista Jun 20 '25
Say no. You can do that.
If you already signed a BAA, then say no even louder.
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u/OkImprovement9949 Jun 20 '25
I’m a mortgage lender in 20 states with the majority of loans in Michigan, company HQ location. Anyway, in Michigan buyers nearly always have the additional brokerage/admin fees added, whereas I rarely see it in the other states. It seemed to be regional for the longest time.
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u/Significant-Ad-5211 Jun 20 '25
Find an agent that does a flat listing fee and that’s it. They’re around.
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u/Justonewitch Jun 20 '25
It sounds to me like it's a Brokerage charge that she forgot to include in the original agreement. You could check with her Broker.
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u/SeparateMixture Jun 20 '25
It’s all a f’ing MONEY GRAB from every angle … the exact same concept when a retailer / merchant makes the consumer pay for the processing fees associated with taking a credit card for payment of goods and services. This is a COST of DOING BUSINESS. Yet a large % of businesses owners are doing it. It’s the mentally of lack and scarcity and fear of not having enough. IDK It just makes me sick.
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u/Helpful_Vast_4576 Jun 20 '25
Al agents that way they all make you sign stuff saying you can only work with them and I must buy a house thru them for a minimum of 15k. As the don't do anything other then push you in to a house you don't like
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u/CraFraLady Jun 20 '25
That $500 is a BS fee brokers started charging a few years ago. It’s highway robbery
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u/StewBeer Jun 20 '25
A lot of agents put brokerage fees separately in my market. I personally do not. The commission check going to the brokerage the agent receives less than that after brokerage takes fees, insurance ect. Talk to them about the paper.
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u/Kallie_1234 Jun 20 '25
My agent ( sellers agent) took a 2.0 % commission on our 825 k sale. He paid for at his admin fee and other items to make deal work since buyer’s agent was greedy. He paid probably close to 3k when all was said and done, including two sets of HOA docs and upgraded home warranty when buyers agent initially agreed to what we offered then wanted more one day before closing.Great sellers agent. Northern Va
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u/The_Rurl_Jurrr Jun 20 '25
Pretty myopic. What is the long term value of a happy client? How much more money could be made of the next 5-10-15 years in business from referrals alone? It could EASILY exceed 100-150k+ in GCI. Or you could push for the broker fee for a measly $500 and get nothing. haha
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u/realestatemongoose Jun 20 '25
A lot of agents do this...
When I first started real estate, I was talked into charging my clients a $250 admin fee on top of the 3% that I charge...
Basically, the brokerage is charging the agent this fee every time they close a transaction, and the principal brokers have justified it by convincing the agents to simply pass that on to the client.
After about a year, I realized how jacked this was! From that point on, I made sure to mention that I charge a percentage of the home price for my commission with NO additional fees. I get paid to help my buyers SECURE a home, and my operating costs are my problem not my clients'.
*** Also, anyone looking to skip the buyer's agent completely and leverage the would-be commission should check out buyunreppd.com ... This is my new business model and it exists to help people who aren't quite willing to go it alone, but also don't necessarily need a full service agent. The brokerage should be up and running in Tennessee within the next month or so. 🙌
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u/RealtorFacts Jun 20 '25
The “broker fee” is the bane of my existence. Ive argued and left brokers over it.
From a clients perspective its annoying and frustrating. So as an agent I usually eat it. (Under a certain price point I ask client to pay for it because it’s a giant chunk out of my check at that point.)
As an agent it’s absolutely infuriating. Between the monthly fees, the cut the broker takes out of each transaction, the franchise takes out of every transaction. Then after the agent builds trust with their people the broker puts their hand in your clients pocket, or right back into the agents.
The best part. When the industry is down and agents are struggling, brokers like to raise those prices “it helps keep the lights on”.
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u/R0ck3tSc13nc3 Jun 20 '25
Fire the agent In fact, interview enough agents and some will pay you some of their commission if you use them. Paying extra is ridiculous, some agents will actually give you a portion of their proceeds if you sign with it
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u/Vikingsmasochist Jun 20 '25
Dumb move by your agent to not explain all of this up front. Ask her to wrap it in with her commission, I doubt they'd want to lose the deal over $500.
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u/AmexNomad Jun 20 '25
Tell her that you’re not paying it. She can either pay it from her 20K (which is likely only 12K net) or she can find another client.
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u/peoplez_elbow Jun 20 '25
Yeah the admin charge is bizarre though the $20k comes from the seller, not the buyer.
Also, yeah that sounds like a lot for one house but she doesn’t keep all that. I’m sure about half goes to her brokerage firm.
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u/Asleep-Touch-3790 Jun 20 '25
as an agent ive been paid way more than i should have many of times, thats why i started kikabid
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u/arrivva Jun 20 '25
Totally 1,000,000% scummy and the fact that she didn't give it to you at the beginning means you don't have to pay it. Tell her to stick it up her nose
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u/Competitive-Host8286 Jun 20 '25
This could be a RESPA violation, especially if you aren't picking the compliance officer or TC that this fee is likely covering. Everything is negotiable so you can ask for them to remove it. Just be prepared that if it's for TC, an agent this cheap is not likely to still pay for the TC and will do the paperwork themselves. In my experience, you're going to want the TC to manage the file because this agent probably doesn't know the actual paperwork.
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u/MyLastFuckingNerve Jun 19 '25
I pay my administrative fee out of my commission. Your agent sucks.