Is It Normal for Flat Fee Broker to Charge Buyer Fee?

3 Replies

Hi, Is it normal for a listing flat fee broker to charge the buyer a fee during closing around $300-500? Called two broker and asked them if there were any additional fee or hiden fees I should be aware of, they told me there was a fee for the buyer & should not effect me. But I just dont want to explain that upon closing unless is an industry standard for flat fee broker to charge that fee? please let me know. Thank you

@Eric Percival I am not sure about other states, but I see this all the time here in the Chicago market. Brokerages call it many different things, but it is often times called a transaction fee or a technology fee. It is normally paid out of the buyer's broker's commission here. 

@Eric Percival - A small fee to the buyer I have seen with auction or REO properties. In my area properties listed on the MLS are a percentage less a small fee which gets taken out of buy side commission

@Eric Percival No, that is not an industry standard practice. 

Flat fee brokers are great (full disclosure I am one in California), however some of them try to sneak extra fees into the listing agreement. Always read the listing agreement before signing and check the flat fee brokers reviews. If you see these extra fees, find another one as there are plenty out there. 

In this case, I am not sure how this flat fee broker would enforce that fee on the buyer. Something tells me that if the buyer pushed back, you would end up paying the fee.

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