Administrative Fees And The Real Estate Industry
You get to the closing table and are going over your HUD-1 statement – the form used to show you the real cost of buying and/or selling your property – and you realize there is an administrative fee of anywhere from $250-$450. What is an administrative fee and why did you not know about it?
Reality is you probably were told by your REALTOR® the brokerage was going to charge you the fee. These fees are charged to both the buyer and the seller. You were probably given the information along with some other numbers and it got lost in the shuffle. So why do you have to pay it?
Real estate brokers are faced with rising costs of doing business have looked for ways to supplement their income. Some have begun charging an administrative fees in addition to the real estate commission, to reduce the cost of doing business. You do not necessarily have to pay the administrative fee. You can negotiate with your REALTOR® to cover or split the fee – not very popular with the REALTOR® as they are already splitting the commission collected with their brokerage – or ask that it not be charged. You can choose to work with a company that does not charge this extra unnecessary fee.
My Place Realty, Inc. does not charge an administrative fee. We believe we can keep our own costs down and can help you reach your real estate goals.