Comments on: Should Realtors Charge Transaction or Admin Fees http://crosslandteam.com/blog/2009/05/12/should-austin-realtors-charge-transaction-fees/ Austin Real Estate Blog Wed, 08 Feb 2012 19:40:44 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: RealEstateJoe http://crosslandteam.com/blog/2009/05/12/should-austin-realtors-charge-transaction-fees/#comment-85761 RealEstateJoe Tue, 23 Jun 2009 17:23:33 +0000 http://crosslandteam.com/?p=958#comment-85761 Both sides have a point. There are always additional expenses, especially in the current market, for marketing a property. Even if someone tries to sell a house themselves, there are attorney's fees,. listing fees, printing fees, etc.etc. etc. Normally the seller expects that to come out of the agent's pocket. But when expenses increase, property values are low, and it take more effort to sell a home, all of those incurred expenses come right out of the agent's pocket. As anyone in the business knows, for sale by owners has a whole series of pitfalls and legal considerations that will cost $$ on top of trying to reinvent the marketing wheel. Both sides have a point. There are always additional expenses, especially in the current market, for marketing a property. Even if someone tries to sell a house themselves, there are attorney’s fees,. listing fees, printing fees, etc.etc. etc. Normally the seller expects that to come out of the agent’s pocket. But when expenses increase, property values are low, and it take more effort to sell a home, all of those incurred expenses come right out of the agent’s pocket.

As anyone in the business knows, for sale by owners has a whole series of pitfalls and legal considerations that will cost $$ on top of trying to reinvent the marketing wheel.

]]> By: kristina wise http://crosslandteam.com/blog/2009/05/12/should-austin-realtors-charge-transaction-fees/#comment-85753 kristina wise Tue, 23 Jun 2009 16:05:05 +0000 http://crosslandteam.com/?p=958#comment-85753 What is the difference between a lender's "processing fee", "closing fee", "admin fee", etc. on top of the "orgination fee percentage" compared to a real estate professional's "admin fee" that is paid toward expert help of producing a successful closing? Most Realtors collect the 3% listing fee and try to do it all themselves and ultimately produce series of breakdowns. In fact, I have to pay my staff extra in most cases to successful close both sides of the transaction b/c of incompent agents trying to close the file on their own. The public would be better served to pay an extra few hundred bucks towards detailed expert closers and let the agent do what they do best -- show, sell and negotiate. What is the difference between a lender’s “processing fee”, “closing fee”, “admin fee”, etc. on top of the “orgination fee percentage” compared to a real estate professional’s “admin fee” that is paid toward expert help of producing a successful closing? Most Realtors collect the 3% listing fee and try to do it all themselves and ultimately produce series of breakdowns. In fact, I have to pay my staff extra in most cases to successful close both sides of the transaction b/c of incompent agents trying to close the file on their own. The public would be better served to pay an extra few hundred bucks towards detailed expert closers and let the agent do what they do best — show, sell and negotiate.

]]> By: Brent http://crosslandteam.com/blog/2009/05/12/should-austin-realtors-charge-transaction-fees/#comment-82023 Brent Tue, 26 May 2009 02:52:52 +0000 http://crosslandteam.com/?p=958#comment-82023 Admin fees? ARE YOU KIDDING ME??? The friggin 6% to sell a house isn't enough money for nothing?? Now you want an admin fee? No wonder everyone is selling on their own. Admin fees? ARE YOU KIDDING ME??? The friggin 6% to sell a house isn’t enough money for nothing?? Now you want an admin fee? No wonder everyone is selling on their own.

]]> By: RealEstateJoe http://crosslandteam.com/blog/2009/05/12/should-austin-realtors-charge-transaction-fees/#comment-81064 RealEstateJoe Tue, 19 May 2009 19:24:57 +0000 http://crosslandteam.com/?p=958#comment-81064 When I worked in the printing business many years ago, I would always have a customer call and complain about a line-item: "Delivery Fees". She was very upset that she was being charged delivery charges for her printed materials. The reality of the situation was that the cost was a part of her project, and the expense would have to be paid for in the billing one way or another. If we did in fact "bury" the cost in the printing charges, she would that have to pay state sales taxes on the delivery expense, as delivery charges were tax exempt. The point being: there is a cost of doing business which has to be recovered in the payment, whatever you decide to call it. If you are trying to get additional income by creating additional line items is one thing, if there is an out of pocket expense that should be paid above and beyond the commission structure, then it needs to be articulated in the contract. When I worked in the printing business many years ago, I would always have a customer call and complain about a line-item: “Delivery Fees”. She was very upset that she was being charged delivery charges for her printed materials.

The reality of the situation was that the cost was a part of her project, and the expense would have to be paid for in the billing one way or another. If we did in fact “bury” the cost in the printing charges, she would that have to pay state sales taxes on the delivery expense, as delivery charges were tax exempt.

The point being: there is a cost of doing business which has to be recovered in the payment, whatever you decide to call it. If you are trying to get additional income by creating additional line items is one thing, if there is an out of pocket expense that should be paid above and beyond the commission structure, then it needs to be articulated in the contract.

]]> By: arz http://crosslandteam.com/blog/2009/05/12/should-austin-realtors-charge-transaction-fees/#comment-80767 arz Sun, 17 May 2009 05:15:27 +0000 http://crosslandteam.com/?p=958#comment-80767 I think fee for service should be ok as long as the entire service is fee based. Otherwise, how do you explain that 3% is all about? A bonus? I think fee for service should be ok as long as the entire service is fee based. Otherwise, how do you explain that 3% is all about? A bonus?

]]> By: scott http://crosslandteam.com/blog/2009/05/12/should-austin-realtors-charge-transaction-fees/#comment-80288 scott Thu, 14 May 2009 00:46:13 +0000 http://crosslandteam.com/?p=958#comment-80288 hey michael, admin fees are illegal. marketing fees are not. be careful with labels, they can be very tricky if not justified! hey michael, admin fees are illegal. marketing fees are not. be careful with labels, they can be very tricky if not justified!

]]> By: lenny http://crosslandteam.com/blog/2009/05/12/should-austin-realtors-charge-transaction-fees/#comment-80274 lenny Wed, 13 May 2009 23:45:06 +0000 http://crosslandteam.com/?p=958#comment-80274 we charge administration fees for the transaction fees that cover the processing fees for the closing fess its a free world... we bring value to the closing table... we charge administration fees for the transaction fees that cover the processing fees for the closing fess

its a free world…

we bring value to the closing table…

]]> By: Michael @ The Stage Coach http://crosslandteam.com/blog/2009/05/12/should-austin-realtors-charge-transaction-fees/#comment-80102 Michael @ The Stage Coach Wed, 13 May 2009 00:40:53 +0000 http://crosslandteam.com/?p=958#comment-80102 hi, Steve: Two comments: Would you believe I know a Stager who is also a REALTOR. And she charges a fee for her services to herself as part of her marketing costs. This sounds underhanded and non-professional to me. That's like me charging to take photographs - I'm going to take them anyways. Second - my New Year's resolution for 2008 was to no longer pay Admin fees. If they won't waive it, I find a new vendor. Examples of people who expect a fee so that you can be their client: Ballet/Dance schools. Karate schools. Self-Storage. Almost anything involving kids. This is all that's coming to mind - but I was about 50%-50% for 2008 with getting them waived. [true story: Ballet school wanted $25 admin fee for $50/month class. I asked, "What do we get for the $25?" "We process your application and file it." "How about I keep my $25 and I'll find the "F's" filing cabinet and file it for you?" Silence on the other end of the phone..."Or for $25, I can dictate the information and you can fill in the form for me? She hung up on me...] My view: if I started charging an admin fee, it's like saying, you can pay me so that I may provide a service to you, for which you will then pay me for. If the company you are dealing with wants an admin fee, they need to reassess their business plan and raise their rates if they are not able to make ends meet. Admin fees should be illegal. thanks for sharing this info. Michael @ The Stage Coach hi, Steve:
Two comments: Would you believe I know a Stager who is also a REALTOR. And she charges a fee for her services to herself as part of her marketing costs. This sounds underhanded and non-professional to me. That’s like me charging to take photographs – I’m going to take them anyways.

Second – my New Year’s resolution for 2008 was to no longer pay Admin fees. If they won’t waive it, I find a new vendor. Examples of people who expect a fee so that you can be their client: Ballet/Dance schools. Karate schools. Self-Storage. Almost anything involving kids. This is all that’s coming to mind – but I was about 50%-50% for 2008 with getting them waived. [true story: Ballet school wanted $25 admin fee for $50/month class. I asked, "What do we get for the $25?" "We process your application and file it." "How about I keep my $25 and I'll find the "F's" filing cabinet and file it for you?" Silence on the other end of the phone..."Or for $25, I can dictate the information and you can fill in the form for me? She hung up on me...]

My view: if I started charging an admin fee, it’s like saying, you can pay me so that I may provide a service to you, for which you will then pay me for. If the company you are dealing with wants an admin fee, they need to reassess their business plan and raise their rates if they are not able to make ends meet.

Admin fees should be illegal.

thanks for sharing this info.
Michael @ The Stage Coach

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