I have recently started making some offers in Las Vegas and notice that the brokers charge a $500 storage fee for documents When i asked the agent she says it is common and has heard of fees over $800 Is this common practice in Vegas or around the country ?
Here they vary from $295-$495. They "justify" them as document retention costs, as the states have starting requiring all doc.s, even offers, be retained and accessible for 5 years. They are negotiable, depending on who you're dealing with, and the price point of the properties.
@Account Closed In other words, she's giving you a deal by only charging your $500 for your document storage? Amazing, this sounds like junk fees to me. I have heard of additional fees charged by brokers, for various things, but never for storage. But I guess they have to maintain files for 5 years or more
Such a deal do you want to see if I can get the same deal for you? @Stuart Birdsong
@Account Closed That sounds great! I am realtor in Colorado, and we don't charge fees like this, but it's clearly a different market. Maybe I need to implement this into my model. Thanks for the laugh!
@Wayne Brooks apparently they have a class of realtors whom are licensed but are considered assistants They draw a salary and do all the grunt work for the office.I am sure those fees are part of the basis
To be more clear, it is a fee that Is collected by the broker, from the agent if the agent can't get the client to pay it. It actually has more to do with the current, prevelant business model of the industry. There is pressure is most brokerages by agents wanting to receive 90% splits on commissions. A large part of most brokerages income theses days is from these "transaction fees", as opposed to the traditional commission split percentages.
I have seen lots of agents in Vegas charge these obnoxious fees. I personally do not as I feel that is extremely unprofessional. If you want referrals do not charge your buyers obnoxious fees. The fees we pay to brokers is just the cost of doing business.
Transaction fees are more common than not in Vegas.
If you are buying low priced properties the transaction fee is usually higher to help off set the very low commission amounts.
If you are buying a 300k home often times the agents will pay the fee to their Broker out of their own commission. However if you are buying a 50k condo the commission amount is so low the transaction fee gets passed on to the buyer.
As an agent we do the same amount of work on both deals yet one lands us a check for 9000 while the other only 1500. If I am only making 1500 I am not willing to pay the transaction fee as well as the pay becomes not worth the time and expense.
I have seen transaction fees from zero to as high as 1250 depending in the brokerage and what type of deal it is.
What is more ridiculous than that is short sale negotiation fees as high as 5000 when many brokerages including mine will do it for free.
Those short sales "Negotiation" fees are the biggest joke. Such a scam! My team as well does them for free.
I think a lot of agents miss the point of customer service. They are in it for the short term money such as what they can get immediately. Which is why they wont take the hit on a transaction fee. As Robert Adams pointed out same amount of work on 100k condo as 300k home. What the agents are missing is if you treat that 100k client as a 300k client the long term reward is so much greater than charging him a $400 or $500 transaction fee. Because when he absolutely loves the job you did for him and refers all his friends and family that turns from 1 small paycheck or 3 or 4.
Personally if I was a home buyer and found out because I didn't qualify as high as the next guy I get charged additional fees? If I am struggling with money in the first place and can only afford a 100k condo why charge me more?? Makes no sense.
I treat everyone the same as this is a marathon and not a race. If I make $1,200 off a deal no biggie. I am busy enough in the pipeline where it does not make or break me at all when your closing 4-7 escrows a month.
I have to agree to disagree...there is only 24 hrs in a day. I can spend my time on deals that make me money or deals that don't. Either way I will be dealing with cleints and files all day long. I prefer to deal with clients that value my time as I value theirs. If I did not have the ability to have my day filled with these types of clients then I would be more open to doing deals for very little pay in an attempt to gain future business. But it makes no sense for me to take time away from clients that either have higher purchase prices or that are willing to compensate for the lack of, in order for me to spend more time with people that want to complain about fees and pay me very little. Everyone has a different business plan but I am in this business to make money for my clients as well as myself. I am very good at what I do and my clients make plenty of money and do not mind paying me for what my time is worth.
When i bought my personal home , they real estate company tried to slide a storage fee of $ 400.00 in at the last moment . I saw it and told them I will cancel settlement unless the fee disappears . It magically did .
I guess it depends on the market. In a hot market, I will not even pay 6% percent to a listing agent. If they think I will pay more than that I will just laugh at them.
At least in the Dallas area, there is a shortage of listings.
In a market where the agent was going to have to do some marketing or wait more than 60 days from listing to closing then higher fees might be appropriate.