Realtor Fees Higher Than First Stated

[Jon Haney]

Hi everyone,

Currently wrapping up my second SFR, this one located in St. Louis. My question is about realtor fees.

I signed a buyer’s purchase agreement with a realtor that I got to know through this deal (he was already working with the seller). The agreement stated that I should pay 2.7% or $1,000, whichever is greater, with the property coming in at $40,000.

However, I was just speaking again with the realtor, asking about wiring instructions, and he told me he “usually charges a flat fee of $2,000 on transactions under $50,000.”

My question is: Is this fair? I didn’t know anything about his rate before we started, but neither did I specifically ask, since I thought his rate was stated in the buyer’s agreement! 

Thanks for the help!