Brokerage 499$fee on the new brokerage agreement

Investor · Member since 2022 · 11 posts · 2 votes

Hello BG Community,

I had a question if the new Brokerage agreement fee of $499 can be waived by the real estate agent?, and also what to keep in mind when negotiating those fee and percentage with the agent. Thank you

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Marcus Auerbach

Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes

You can claim it's for this or that, but let's be frank: it's additional income. It's common in lower-priced markets, you won't find that on the coast. We charge $595 and I waive it for repeat and high price point clients.

The new NAR settlement rules also mandate and allow agents since August 17th to negotiate their own buyer-side commission. We have increased our rates as a result, especially for investors.

I know how this sounds, but here is the deal.

It has not been fair that an agent who has absolutely no background with investing, does not know market rents, has never gone through an eviction, never rehabbed 3 houses at the same time or has managed a portfolio for 15 years, is not able to provide any guidance or help with investing strategy gets paid the same.

I have been an investor for 7 years before I got licensed and I know how useless many agents are. My goal has always been to be that agent I was never able to find. And to provide more value than we charge. That's also the policy for my team.

So now we have been able to adjust that and our clients can decide if they see a value in what we offer and want to work with us - or pick someone else who is cheaper.

So you can try to negotiate the $499 with that agent, but the much more important question is: are you picking the right agent?

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Sousie E.
OP
Investor · Member since 2022 · 11 posts · 2 votes
2y

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Max Ferguson
Real Estate Broker · Denver/Castle Pines/Colorado Springs, CO · Member since 2021 · 248 posts · 136 votes
2y
this is too specific and I have no clue what fee this is...is it an onboarding fee? Desk Fee?

Are you an agent? is your agent making you pay a $499 admin fee?

Happy to help anyway I can just need some more information! Thanks
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Sousie E.
OP
Investor · Member since 2022 · 11 posts · 2 votes
2y
Quote from @Max Ferguson:

this is too specific and I have no clue what fee this is...is it an onboarding fee? Desk Fee?

Are you an agent? is your agent making you pay a $499 admin fee?

Happy to help anyway I can just need some more information! Thanks

0 Reply
Max Ferguson
Real Estate Broker · Denver/Castle Pines/Colorado Springs, CO · Member since 2021 · 248 posts · 136 votes
2y
AH ok, for some reason the picture didn't populate before I first commented.

Some agents charge that as an "admin" or brokerage fee. It really depends on the agent, I would ask what this fee is for and see what they say.

Let us know what you find!
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Ryan Cheek
Member since 2024 · 92 posts · 43 votes
2y
I have a very similar fee with the brokerage I am at. It is $749 which I try to have the client pay; however I usually split it with the client. I am not a huge fan of the fee, but it seems common where I am located: Indianapolis. The brokerage uses this to pay for lots of stuff office supplies, CRM, insurance, marketing, etc.. Not sure why this does not come out of the commission split. As long as you love where you are at I would try to look past this and keep in mind the long term picture of the brokerage. We have an in house builder here, so I have an endless supply of lots I am purchasing for them and selling these investment properties they build on the back end.
Every case is different though hopefully this helps.
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Bryan HartlenPro Member
Investor · Phoenix, AZ · Member since 2018 · 313 posts · 157 votes
2y
Those fees go to the Broker not the agent… in many cases it’s a fee that the office pays to the company itself (like a franchise fee). While you can try to negotiate anything, I haven’t encountered any broker that’s been willing to reduce the fees.
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Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
2y
It's common in my area. It goes to the broker not the agent. My brokerage is $495 for the broker fee. Agent can't waive it, they can eat the cost but as an agent I would not.
0 Reply
Marcus Auerbach
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
2y
You can claim it's for this or that, but let's be frank: it's additional income. It's common in lower-priced markets, you won't find that on the coast. We charge $595 and I waive it for repeat and high price point clients.

The new NAR settlement rules also mandate and allow agents since August 17th to negotiate their own buyer-side commission. We have increased our rates as a result, especially for investors.

I know how this sounds, but here is the deal.

It has not been fair that an agent who has absolutely no background with investing, does not know market rents, has never gone through an eviction, never rehabbed 3 houses at the same time or has managed a portfolio for 15 years, is not able to provide any guidance or help with investing strategy gets paid the same.

I have been an investor for 7 years before I got licensed and I know how useless many agents are. My goal has always been to be that agent I was never able to find. And to provide more value than we charge. That's also the policy for my team.

So now we have been able to adjust that and our clients can decide if they see a value in what we offer and want to work with us - or pick someone else who is cheaper.

So you can try to negotiate the $499 with that agent, but the much more important question is: are you picking the right agent?
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