I have lurked here for a while and I have topic I would like to get your opinion on.

The Brokerage I work with has instituted a "Transaction Fee Policy" that says I must charge my clients this transaction fee and if my client refuses to pay the transaction fee then the fee is deducted from my commission split.

I understand the issues around a transaction fee in general as discussed on this post: http://www.agentsonline.net/forums/ubbthreads.php/topics/237685/1.html
I don't have a problem asking my clients for the fee but if they refuse...

What is your opinion of deducting the transaction fee from the agents commission split if the client refuses to pay it?

Find a new broker.

There are several brokers in NJ forcing this fee upon their Agents now because they are hurting for cash. I would have a very hard time telling a client of mine "thank you for the full 3% commission on my side, and by the way, you owe my broker another $250."

Its a BS fee and Agents should not stand for it.

i personally think it is a legit way to nickel and dime someone and that all admin fees should be knocked off in a commission based business due to the fact that we are not an a la carte business. if we charged for individual services rendered then i would have no problem with admin fees.

do i charge tehm? yes
do i like them? HECK NO

I paid those 'transaction fees' in the past. I would not pay them again. What you do depends in large part on the negotiating power you have with your broker. Can he afford to lose you?

I would find a new broker, too. It is not fair for the broker to charge YOU the fees when he's already getting a pretty good split from and/or a desk fee.

Now, if everyone else is doing it in your market area, then switching brokers won't solve anything unless there's another broker who doesn't take it out of your pay.

My broker charges a transaction fee. I pay it to corporate in addition to my split with my office.
Does anyone else have this huge fee?

Would this be considered a "royalty" fee? Do you belong to a franchise?

The only thing we pay to corporate is an 8% fee off the top. Then the broker only takes his split, no other fees.

This is excactly why I own my own company and do not have agents.Agents by nature watch there bottom line and I don't blame them.Brokers based there companies structure and splits on sales volume of the past .Guess what those sales have gone down but operating costs remain the same.

This is exactly why I got out of the restaurant business.Employees always complaining about there pay,not enough hours,they work to hard for the money,they have problems at home,etc.,etc.

I just enjoy doing my own deals and not dealing with the DRAMA of agents.

Nothing wrong with it it is just not my thing.

I wouldn't want agents either if I had my own office. Perhaps a partner but no agents to supervise. you're right, there is a lot of drama and no matter how much you do for them they'll always be pissy about something.

Myself excluded, of course...

My company charges a $350 transaction fee. Most large companies in my area charge a similar fee too. I don't like the fee, but I still have to deal with it.

Like "super realtor" I work alone (no other agents) in a non-franchise business. What I earn is not divided up with another broker or other corporate entity. I have been there in the past where, like Perky, I was loosing 8% off the top and then splitting the balance with a sponsoring broker. Never again!

What's the quid pro quo for your Client/Customer ?

I charge a "Closing Fee" (of maybe $100 to $200) for conducting a Closing here in my Office when I have a simple Cash Transaction and the Attorneys don't want to be bothered; but would do it for 3X what I charge. Sometimes the Buyer and Seller share this cost because they both see it as being beyond our normal Sales or Marketing efforts, and what they get is quite tangible.

What do your "People" get for the Transaction Fee ? (In 10 words or less, please)

no transaction fee here...going back to the OP's question, though...

if your customer refuses to pay the transaction fee...and it doesn't come out of your side of the split...where SHOULD it come from?

If it's required by your broker you have 4 options.

1) Lose the customer over a $250 fee.
2) Pay the fee out of your pocket.
3) Negotiate with your broker for them to "pay your fee" for you because you're a valuable asset to his business and it'd be bad for his business to not pay the fee for you and your customers.
4) Find a new broker.

probably, nothing, nothing, nothing, nothing, nothing, nothing, nothing, nothing, nothing.



most brokers that i know cant even answer that in a competent manner that would make me as a customer say, oh, ok i see....