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Lisa Bachek

Cost of doing business

By: Lisa Bachek
Wednesday, July 18, 2007 10:48 AM

I recently neog a contract with a CBG agent and they asked the seller   to pay for buyers closing cost but also that they pay additional $295 BAC fee to CBG for their buyer. I also have had one coming thru with the commision box checked for both the seller paying Comm and the buyer paying this BAC fee.

I was told that it is a charge that CBG is starting to charge all their clients at the closing of a transaction. Not an agent fee but a client fee. I was shocked that this was being passed on to clients and not the agent. or is it and the agent is passing the buck over to the clients, in these cases.

If it is an agent fee I guess they have given them self a raise by passing the fee on to the client. Not sure what my feelings about it are, just curious to the change, and if that was CBG's intention that it be passed on to the client and not the agents cost of doing business. Or is there a fee for both agent and client?

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Comments

Cathy  Clark
Member Since '06

Cathy Clark said:

Never heard of such a thing!

July 18, 2007 10:28 AM
Radley Reiff
Member Since '04

Radley Reiff said:

Is a typo, that CB fee should not be on your side of the table.

July 18, 2007 10:37 AM
Michael Valdes and Associates
Member Since '06

Michael Valdes and Associates said:

I also have had buyer agents try to sneak fees like that on to my seller's side of the transaction fees when they send an offer thru. I just put a line through the fee(s)... They never have insisted I put it back on. Their buyer would most likely be upset if they knew that was going on.

July 18, 2007 11:43 AM
Jana Davis & Virginia Houghton
Member Since '05

Jana Davis & Virginia Houghton said:

Lisa this is a very common fee here in CA.  However I have not heard of the other Broker paying it.  It is usually paid by the Broker's client (buyer or seller).  As it is a Broker's fee, the agent gets no part of it. So not the same as commission.  You might come back on counter and remove that fee.  In some Brokerages this fee can be waved by the Broker or if it is that offices policy the agent can pay it for their client.  At least here we feel passing it on is in poor taste.  But like you said it is something new there.  It won't be new for long.

Jana

July 18, 2007 11:45 AM
Candice A Donofrio
Member Since '07

Candice A Donofrio said:

Lisa, what's CBG and what's BAC?

July 18, 2007 11:46 AM
Candice A Donofrio
Member Since '07

Candice A Donofrio said:

Never mind, I know what BAC is, but what's CBG?

July 18, 2007 11:46 AM
Jana Davis & Virginia Houghton
Member Since '05

Jana Davis & Virginia Houghton said:

Hi Michael their buyer probably already knows about it and the agent tells them they will get the other party to pay.  I don't know if you can put a line through that on the contract, I think you should counter it out in your counter offer.

Jana

July 18, 2007 11:47 AM
Gary Szolosi
Member Since '03

Gary Szolosi said:

You have to stop with the Acronym's, I have to think to hard to figure out what you are talking about! I am assuming CBG is Coldwell or some real estate company.

An agent trying this could end up in a bit of a bind should the deal fall through and they had not discussed it with their client. However, if they discussed it with them and made it part of the offer, I think it is just another negotiating point. Never had it happen but since it is part of the cost involved with the home purchase, it would be fair to put it into the negotiations.

July 18, 2007 11:58 AM
Tim and Susan Fennell
Member Since '06

Tim and Susan Fennell said:

BAC?  CBG?  I'm not familiar with these acronyms either.

July 18, 2007 12:01 PM
Candice A Donofrio
Member Since '07

Candice A Donofrio said:

I am thinking BAC = Buyer Agent Commission (?)

I know what CBGB is, or was  (disco)  LOL

July 18, 2007 12:13 PM
Gary Szolosi
Member Since '03

Gary Szolosi said:

I think BAC= Some sort of Broker Fee, and CBG= Coldwell Banker

July 18, 2007 12:49 PM
Jana Davis & Virginia Houghton
Member Since '05

Jana Davis & Virginia Houghton said:

Maybe Lisa didn't want to actually name the company.  But I will bet it is a National company.  Or someone who just came from CA.  The actual fee name is different with each company.  And the fee is mentioned in our listing contract and our company addendum.  So the clients should know what they are being charged.  Since it is new in Lisa's area the other agent is probably feeling uncomfortable about changing this so rather than pay it him/her self is shifting it over to the other side.  

Jana

July 18, 2007 1:19 PM
Phil Anderson
Member Since '04

Phil Anderson said:

So what's neog?  

July 18, 2007 3:00 PM
Candice A Donofrio
Member Since '07

Candice A Donofrio said:

Phil, LOL . . . it's short for neo-gargantuan sale . . . of course  :)

July 18, 2007 3:29 PM
Candice A Donofrio
Member Since '07

Candice A Donofrio said:

Or neo-gorgeous brokers . . . like all of us here in the matrix!  :)

July 18, 2007 3:30 PM
Mary Welch
Member Since '04

Mary Welch said:

I am thinking neog means negotiated, it seems to fit the sentence. Now the CBG I have no idea. I am familiar with CDBG but those are grants. Just doesn't fit. Is it just me or does stuff look weird on the right side where it says "recent comments."

July 18, 2007 3:37 PM
Cathy  Clark
Member Since '06

Cathy Clark said:

I'm going with Candice's Matrix explanation.

July 18, 2007 3:39 PM
Candice A Donofrio
Member Since '07

Candice A Donofrio said:

It's like Back to the Future over there . . . recent comments . . . plus, they added this Amigos thing. Are they trying to confuse us because it doesn't take that much effort . . . LOL

July 18, 2007 3:44 PM
Cathy  Clark
Member Since '06

Cathy Clark said:

TLA's differ from S2S.  I think we need to do what lawyers do:  use the full term first and then in the future referred to as "TLA".

I've seen so many TLA's I've had to figure out just so I didn't appear to be an idiot.

July 18, 2007 3:51 PM
Gary Szolosi
Member Since '03

Gary Szolosi said:

I think neog is a fluorescent g seen while passing to and from an afterlife experience or after the consumption of bad mushrooms. May be wrong but I think I heard that somewhere.

July 18, 2007 3:51 PM
Cathy  Clark
Member Since '06

Cathy Clark said:

Isn't a BIC a cigarette lighter?

July 18, 2007 3:51 PM
Gary Szolosi
Member Since '03

Gary Szolosi said:

What is BIC an acronym for? Burn it Cigarette?

July 18, 2007 3:55 PM
Cathy  Clark
Member Since '06

Cathy Clark said:

I learned the hard way, it's "Broker in Charge".  I think.

July 18, 2007 4:01 PM
Gary Szolosi
Member Since '03

Gary Szolosi said:

Oh wait, BIC is the acronym. Are brokers in charge of cigarette lighters? So you flip your Broker in charge. That doesn't seem nice!

July 18, 2007 4:39 PM
Mary Welch
Member Since '04

Mary Welch said:

hmm bad mushrooms, personal experience? You can tell us Gary, we won't tell anyone.

July 18, 2007 4:45 PM
Candice A Donofrio
Member Since '07

Candice A Donofrio said:

Hahahahahaha, Mary and Gary . . .

July 18, 2007 5:01 PM
Cathy  Clark
Member Since '06

Cathy Clark said:

TLA's get me PO'd! LOL

July 18, 2007 6:41 PM
Lisa Bachek
Member Since '04

Lisa Bachek said:

Sorry was out all day.

CBG = Coldwell Banker Gundaker

BAC= some sort of brokerage fee to all clients to process the files and pay for paper ink, and storage. (thats what I was told when I asked)

I didn't counter it because the sellers where fine with it and was built in the alotted amount for the closing cost given by the seller  to the buyer at closing.

At first I felt that it should not have been on the seller side to pay , but they didn't care, they just wanted their home sold and all the terms where good for them so they accepted it.

I beleive that this fee probaly is an agent transaction  fee that they are suppose to pay and have pushed on to their clients. it is disclosed and if all parties agree then no problems.  In a sellers market no way ,  would it slide through so easily. But being in this market here, buyers are pushing the limits and I guess some agents are making cut backs where they can, to stay afloat.

Jana I agree, think that I will be seeing alot of this for awhile, untill the market becomes more adjusted, and out of this correction period we seem to be in here in my area.

I guess then in only in CA is this more like a common standard than in most markets. Wow be that starts to change !

July 19, 2007 8:40 AM
Lisa Bachek
Member Since '04

Lisa Bachek said:

Hey Phil my spelling is not that great and my typing lacks as well. That was to be nego > I also am on a dinasour for computer right now and the keys stick and leave out letters.

I try to take my time and get it right , or just not post. Mis spells alwaysseem to hathou . Hey have a great day everyone!!! LOL

July 19, 2007 8:48 AM
Dan  Grammatica, e-PRO
Member Since '05

Dan Grammatica, e-PRO said:

It seems like a so-called paperwork fee. they have to hold records for 7 years so they figure everyone should pay a paperwork fee, to fill out the contract, storage, etc.

Most agents pay the fee for their clients but some don't.

It's like the car dealers paperwork fee, argh!

July 19, 2007 12:25 PM
Dan  Grammatica, e-PRO
Member Since '05

Dan Grammatica, e-PRO said:

To charge a client $20,000 commission for selling their home and then say you owe me another $295 for paperwork, seems a bit much.

But they all say they want "clients for life", is that how they do it?

Good Luck to them.

July 19, 2007 12:28 PM

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