Broker Transaction Fee - Common Practice?

[Cory Dill]

Hello all,

I have been actively looking for my first investment property for the last few months and have had the opportunity to put in one offer so far based on what I am looking for numbers-wise. One thing that caught me by surprise was a "Broker Transaction Fee" of $995 in the buyer's agreement I was told to sign. I was surprised by this because I thought the seller paid for all commissions/fees on a real estate sale/purchase. When I asked about this I was more or less told that because they run the purchase/sale through the agent's brokerage firm it makes the process more efficient and there are all these moving parts etc. I have no reason to not trust this agent because he has been very good to me so far but there was no disclosure of this until I read through the contract. Is this a common practice? This fee amount seems a bit high, especially because my purchase price is 150k or less. Looking for any insight if possible! Also, I am in the Jacksonville, FL market if this helps given different costs nationally.

Best,

Cory Dill

[Jay Hinrichs]

these fee's have been common place for many of the bigger brokerages.. Its just a revenue stream Nothing more nothing less.

when I see them I push back and tell them I am not going to pay it.  having been a Broker for 45 years I am all for paying the commissions  but add on like this not really unless its fully disclosed prior to working with them and we agree on it.. Just like a buyers brokers agreement you agree up front if you want to work with that broker you agree and go forward if not you don't start.. but bringing it into the deal mid stream don't personally care for that.