My agent has sent an exclusive buyer agency agreement. I'm fine with everything in the document except for something titled "Audit Compliance Processing Charge". The agency requires me to pay $935 when the transaction closes. It apparently covers the following:
1. Handling of file during contract to close...
2. Storage and maintenance of documents for 5 years...
3. Errors & Omissions Insurance (which, per my research, is sort of malpractice insurance that the agent and agency need to procure)
Are these charges common in Charlotte? Do all agencies charge this? Is $935 reasonable (sounds very steep to me)?
@Praveen Balaji tell them you won’t pay it. They’ll probably waive it. I’ve done that before
I told him that. He didn't waive it advised me to "not overthink it". I'm back in the market looking for an agent. Good thing, because I'm now wiser.
LOL. Perhaps they're not entirely wrong.
Getting sold sucks. Or does it?
I think the answer is we would actually prefer to be sold if we're honest. It saves a lot of time and hassle. I think what we mostly resent are sales people who somehow don't have the skill of selling us and making us love them for it.
Is being firm on price a quality you desire in an agent? Your agent has shown you they are. For me the only question left would be their loyalty to me. Will they be firm for them but not for me? I look for value when I buy things, including the service of an agent.
I've found that after the dust settles I am happy to be sold, but only if I was sold a good value and did not get taken to the cleaners.
Food for thought - lol.
I am willing to pay for good service. If I'm being charged more, the agent should have a solid reason for those line items in the "Audit Compliance Charge" agreement.
What you said - "I am happy to be sold" resonates with me. I am entering real estate investment prepared to be sold. But, like a great man once said, "only if I was sold a good value and did not get taken to the cleaners"