Don't Pay the Real Estate Broker "Admin Fee"
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It is a junk fee. The brokerage is already getting paid in the form of a commission. To charge an additional fee for overhead charges is in my opinion excessive. It is like buying a can of corn for 59 cents and then having to pay a 7 cent admin fee.
Chantilly, VA, August 07, 2015 /PressReleasePing/ - It is a junk fee. The brokerage is already getting paid in the form of a commission. To charge an additional fee for overhead charges is in my opinion excessive. It is like buying a can of corn for 59 cents and then having to pay a 7 cent admin fee.
By Glenn Stromberg North Virginia Realtor
At some point in your real estate transaction, either purchasing or selling, your real estate agent is going to disclose his brokerages "Admin Fee". If you are a buyer it will likely come up when you are signing the buyer agreement and if you are selling then it will likely come up when you are signing the listing agreement.
What is the "Admin Fee"? It is a fee that almost every brokerage charges. It can range from $195 to as high as $475 and is paid at the closing along with the commission.
Some agents will give a variety of reasons why there is this fee. They will site that it is the cost of doing business, to pay for things like E&O insurance, MLS fees, and Association fees etc. I had one managing broker tell me, when asked what the admin fee is for, "tell them that it is to pay for the unfunded mandates that government imposes on the brokerage". To put it bluntly, it is "Bovine Scatology".
It is a junk fee. The brokerage is already getting paid in the form of a commission. To charge an additional fee for overhead charges is in my opinion excessive. It is like buying a can of corn for 59 cents and then having to pay a 7 cent admin fee.
When the agent does disclose this fee to their client, they will likely want to go over it quickly and move on with the hope of no questions or even worse objections. If there are questions they are likely to hold firm and say "It's a mandatory fee that all brokerages charge" After all if the client doesn't pay the admin fee, the agent will have it taken out of their commission. This is where the advice kicks in.
When the issue of the admin fee comes up, just politely say 6 simple words, "I don't want to pay that". If they are unwilling to remove that fee from the agreement then find an agent who is willing to remove it. If you need a recommendation, I am willing to do it. If you have any questions, feel free to contact me.
Press Contact: Glenn Stromberg North Virginia Realtor 14526 Lee Rd.Suite 100, Chantilly, VA 20151 703-987-8053 http://www.NorthVirginiaRealtor.com
Rate this! 1-5 starsBy Glenn Stromberg North Virginia Realtor
At some point in your real estate transaction, either purchasing or selling, your real estate agent is going to disclose his brokerages "Admin Fee". If you are a buyer it will likely come up when you are signing the buyer agreement and if you are selling then it will likely come up when you are signing the listing agreement.
What is the "Admin Fee"? It is a fee that almost every brokerage charges. It can range from $195 to as high as $475 and is paid at the closing along with the commission.
Some agents will give a variety of reasons why there is this fee. They will site that it is the cost of doing business, to pay for things like E&O insurance, MLS fees, and Association fees etc. I had one managing broker tell me, when asked what the admin fee is for, "tell them that it is to pay for the unfunded mandates that government imposes on the brokerage". To put it bluntly, it is "Bovine Scatology".
It is a junk fee. The brokerage is already getting paid in the form of a commission. To charge an additional fee for overhead charges is in my opinion excessive. It is like buying a can of corn for 59 cents and then having to pay a 7 cent admin fee.
When the agent does disclose this fee to their client, they will likely want to go over it quickly and move on with the hope of no questions or even worse objections. If there are questions they are likely to hold firm and say "It's a mandatory fee that all brokerages charge" After all if the client doesn't pay the admin fee, the agent will have it taken out of their commission. This is where the advice kicks in.
When the issue of the admin fee comes up, just politely say 6 simple words, "I don't want to pay that". If they are unwilling to remove that fee from the agreement then find an agent who is willing to remove it. If you need a recommendation, I am willing to do it. If you have any questions, feel free to contact me.
Press Contact: Glenn Stromberg North Virginia Realtor 14526 Lee Rd.Suite 100, Chantilly, VA 20151 703-987-8053 http://www.NorthVirginiaRealtor.com
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