Agent Fees

I recently read a article on MSNBC. The article was about agents charging a transaction fee. It is very true that some agents will charge a transaction fee to their buyers. The article made it sound like this was SOP. In reality there are a small minority of agents who follow this practice. It is also the large companies who do this since their agents are charged a transaction fee by the mother ship. The agents are trying to recoup their expenses however they shouldn't’t do this at the expense of their clients. The article also stated that a lot of buyers didn’t know they were being charged this until they were at the closing table, if this happens to you then your buyer’s agent is in violation of the disclosure regulations and if I was the buyer I would just refuse to pay. I guarantee the agent won’t stop the closing because of this fee. When I was with large companies, we had the option of charging a transaction fee however if ever challenged legally then the agent has to prove what the transaction fee was spent on outside regular business. That is very hard to document as a outside of regular business expense. In summary it is just as slimy as undercoating and no agent in our company will ever charge a fee to a buyer.


Update
The market is still very active and the prices are getting more insane on a daily basis. Some of my favorites are as follows:

Merritt Island

A listing has just been raised in price from $350,000 to $450,000 after 2 days on the market. This could have been a mistake by the listing agent or seller’s remorse. It would be a low listing at $350,000 even in today’s market. This home has over 2100 sq ft but the best part is it is on the east side of Merritt Island which means it is a straight shot to Port Canaveral with no bridges. This means you never have to take down the flying bridge and can be at the locks in 10 minutes.

A short sale on a canal was listed at $195,000 and sold for $185,000. This was a great buy even if in bad condition. It even has a pool.

A foreclosure in south Merritt Island in a great school district was listed at $84,900 and sold for $85,000. Just over 1000 sq ft and built in 1957 but at $85,000 this was a great buy.

Viera

A short sale listed at $449,000. This home has over 2900 sq ft and a pool and is located on a lake. This is a brand new listing and I don’t think it will last long.

Another lake front home is listed at $239,000 and is not a short sale. It has over 1700 sq ft and a pool. This is a good listing in a very nice neighborhood.

A home with over 3300 sq ft, pool, and a 3 car garage was listed at $435,000 and sold for $387,000.

If you should find a perfect home that will fit your needs then by all means look at all the options. You may be able to find another home that is a little smaller or doesn’t have a pool. If you can get this one like $100,000 less then you could have one heck of a pool.

Jim