You probably know that real estate agents typically earn their income by charging a commission calculated as a percentage of the sales price of the home. You would think that is enough compensation. However, whether the client is the buyer or the seller, they usually end up paying another fee commonly referred to as the transaction fee. It may also be referred to as a “broker service fee” or “administrative fee.” The amount may be anywhere from $295 to $625.
According to an article in realtor.com, “This fee covers the cost of things like document storage and management.” In my opinion, this is a “junk fee” being passed on to consumers for the cost of doing business. What normally happens is that the brokerage company charges this fee to the agent and the agent passes the cost down the client. The good news is that not all companies engage in this practice. Vida chooses to not charge a transaction fee or administrative fee to neither buyer or seller clients. I don’t see why a buyer/seller would be OK with paying it.
Feel free to learn more about the transaction fee from Realtor.com’s article.
As always you can contact me by email or call 303-728-9433 if interested in buying or selling your home.
Vida Real Properties and Services, LLC