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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I was not in a contract to buy a property with my RE agent but the demand for money just keeps on going up. We decided to put an offer on a property that we really like. We verbally spoke before about the fees and commissions and she agreed that there won't be any additional charges. When I saw her contract, there were about $2700 worth of additional fees on top of she getting her commission of 2%(for $1.3M property). She disclosed that additional charges are for documentation, administrative and travel fees to the closing office, etc. I asked her to take it off and she refused so I decided to not use her and found someone who gives some credit back from his commission. I don't understand why these agents need to start charging additional fees when commission is already healthy?[/quote]

Good for you! I'm doing the same. Turned down two agents who refused to budge on 2% fee. Interviewed 3 others, one offered 1%, one offered hourly rate, and still waiting to hear from the last one. Not sure if this was a coincidence but the two who insisted on 2% were older (60+), the kind of realtors who don't really need the money or worry about building a career, just coasting on established reputation/monopoly in a certain neighborhood. Most younger, mid-profession realtors will negotiate if they dont want to be competed out.

CHANGE IS COMING. THANK GOD!!! [/quote]

Smart agents will charge the hourly fee without having it contingent on closing. So, if they're charging $200 an hour and they spend 10 hours with them, you will owe them $2,000 whether or not you ever put an offer on a property.  That's where I see this settling: Hourly billing like a lawyer, likely with a retainer collected up front.

This will also reduce the casual shopping.

Keep in mind a lot of them will collect that hourly fee from companies relocating employees, etc. [/quote]

I can't see individual families are agreeing to this. Houses fall through, offers don't get accepted, buyers discover they house is no good after inspection, etc. Buyers with a set amount of money they can afford to spend don't want to see it pissed away during the home search process. Yeah, i'd rather go with the seller's agent and get a RE attorney who I can top into to help me along the way if needed.[/quote]

+1 I'm not spending a dime on a realtor when I'm looking to buy. Buyers agents are going the way of the buggy whip.[/quote]

Then you stand to be screwed in the transaction. Just understand that.

The reason agents exist is to make the transaction arm’s length. All these people who think they can negotiate their own transaction from start to finish and arrange all the inspections and so forth and so on typically can’t if there’s any sort of hiccup. [/quote]

I'd rather risk getting screwed by a seller's agent (still unsure how that happens if I bid based on comps I pull, choose my own inspector, and hire a firm for closing, but ok) that pay an agent with every incentive to run up the bill hourly. I think it will take a few buyers agents getting smacked down by audits and lawsuits or criminal charges and hourly compensation will disappear. Think about other professions paid that way- tradesmen charge while they are onsite and you can actually see them working, professionals either charge for time you are present (doctors/therapists) or have very strict codes of ethics with over sight bodies who will come down on them leading to very careful and incremental tracking (CPAs and lawyers). Real estate agents fall into none of these categories  [/quote]

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