When you begin your journey to buy a home and hire a real estate agent, you'll first agree on commission and fees. You may encounter a Broker Service Fee as one of those items that you are responsible for as the buyer.
This broker service fee, which ranges from $xxx to $xxx, is often positioned as a necessary administrative fee. It is an amount collected in addition to the sales commission on the final purchase price. Often times this fee is split between the real estate agent and their brokerage.
The use of this money varies depending on the brokerage but typically covers these types of things:
- Order title insurance (email the agreement of sale to the title company)
- Send out settlement notices (included in the cost of title insurance)
- Assist you in obtaining a mortgage commitment (follow-up with the lender)
- Making sure the title is clear (included in the cost of title insurance)
- Making sure the deposits are received in a timely manner
In fact, most of these tasks is the responsibility of an experienced title agent. Most home buyers don't argue and just pay it. Afterall, what's a few hundred bucks compared to the amount their about to spend on a house.