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macypa

Broker's Fee

MacyPA
11 years ago

After attempting to build a new home and failing, we went back to looking at existing houses. We found one we liked on the internet and called the listing agent.

The listing agent showed us the house and there are two more we found and would like to see. But before he shows us the houses, he wants us to sign an agreement that we will pay him $350 when we agree to buy a house no matter how we found it.

Is that common?

Comments (7)

  • krissie55
    11 years ago

    Don't think I would go for that.

    What makes the agent think he deserves a fee for something you find on your own?

  • chispa
    11 years ago

    If you are using him as your Buyer's agent, then isn't he getting 1/2 of the commission too? Why the fee? I have never paid or signed anything with an agent who took us to look at houses. If you find the right agent, then you have a good relationship and there is trust from both sides. Find a good agent and they will earn every penny of their commission. I found a great one when we bought 1-1/2 years ago and she is still a great resource.

  • live_wire_oak
    11 years ago

    If you want to use this person as your Buyer's Agent to access available homes and to help you search for your home, then you should expect to sign a letter spelling out that relationship. You want him to work for YOU, not the home sellers. Yes, he will be compensated for his work should you find a home and purchase it. The seller will pay his commission. If you do not find a home, then you will owe him the money at the conclusion of the relationship. This keeps the "recreational shoppers" that do this for entertainment rather than out of need at a minimum. It shows that you are a serious buyer.

    When I used a Buyer's Agent to purchase my first home, it was a formality to sign an agreement stating that if I were to not use him to purchase a home, I would owe him a fee for the time he spent working for me to find a home. Even 25 years ago, that fee was $500. I'm surprised that it's gone down.

  • MacyPA
    Original Author
    11 years ago

    live_wire_oak

    You misunderstood. The $350 was due when I decided to buy a house. There was no cost if I did not buy. Of course he would also get his commission.

    I've looked at houses 3 times before, though not in the last 10 years or so, and have never heard of having to pay if you did not buy. Don't think that is done around here.

  • terezosa / terriks
    11 years ago

    It's probably a fee that his broker is charging - a "transaction" fee. Just tell him that you will find another agent who doesn't charge the fee. He may decide to work with you anyway.

  • airforceguy
    11 years ago

    We used a Long & Foster agent in VA as our agent (which we hated,lol)to buy a condo and there was a $495 broker fee which they waived!! which was good as they were totally useless,lol

  • azzalea
    11 years ago

    I wonder if this is a local thing? I've never heard of any broker demanding an extra fee for helping a buyer buy.

    Seems to me 3-7% of the sale is more then enough compensation.

    Why don't you call around to other brokers in your area and see if this is the norm or not. If not, I'd definitely forgo signing, and find another broker to represent me.