This homebuyer met with an agent who then referred them to a different agent and told them they expect him to pay a $900 admin fee (in addition to the 2.5% to 3% they are expecting to collect in commission).
We've actually written about the BS admin fees in the past on Selling Later, but never have we seen one for this much! We've also recently seen brokerages call this fee by other names like "Regulatory Compliance Fee" or " Transaction Fee." Even more interesting is that you likely won't see this fee much in Dallas or Seattle, but is rampant in other mid sized cities.
So what is an Admin Fee and how can you avoid paying it?
Matt Wheatley, a broker in Florida who doesn't charge an admin fee, joins us to discuss where this fee came from, why so many brokerages charge it, and how to negotiate out with your agent.
0:43: Buyer story
2:07: Intro to cohost Matt Wheatley
4:17: What is a buyer/seller Admin fee?
6:11: Why are fees so rampant today?
10:30: Are these fees required by the state?
11:10: Past admin duties vs todays duties
12:05: Agents making other agents pay their fee
15:15: Where to find this fee?
19:30: How to negotiate this fee away?
22:35: Matt's pet peeve in real estate
25:40: Finding out your agents reputation
26:24: Internet trolls in real estate
Contact Matt
State laws and regulations may vary.
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