Fees - Enough Already

[freedomatlast]

Anyone else sick and tired of all the new fees being invented for anything and everything?

It used to be when you bought real estate through a broker, the 6% commission paid for by the seller was enough.

I just put in an offer to buy a property that would be mainly for conducting my hobbies, and on the form for the estimated closing costs, I see a "Broker Transaction Fee" of $495. When I asked what that was all about, they said we do that for all transactions now. I mentioned when I bought my primary residence in 2020 there was no such fee, so the realtor said they must have suspended it for Covid, whatever that meant. Anyway, I pushed back and they eliminated the fee, but enough already!

 

[Kings over Queens]

death by 1,000 cuts.

local restaurant, fancy italian steak joint, is adding a 10% "location fee" to bills, and another, this one a new quasi night clubish place for the pretty people, had a $10.00 "entertainment" charge added to a bill when my wife was there. One of the ladies in the party had a fit and then removed it.

I assume that people are paying these fees, and don't mind them and the $20 martini's, but everytime I drive by they are slammed.

go figure.

 

[GenXguy]

I've heard those commissions are negotiable as well, but I never tried in my few home transactions.

 

[qwerty3656]

Hotels - an "urban fee" supposedly because the hotel was downtown.

 

[Sunset]

It's just another way to make money....

You never know when they will pop-up

-------------------------------
Reading Fee............... $1.00

 

[RetiredHappy]

I negotiated down realtor commission to 5%, but there was a Broker Transaction Fee on top of that. When my buyer negotiated the price down by $10K, I told the realtor that I wanted to sell to the buyer, so I would like her to meet halfway by her reducing commission by another $5K. She did that and so effectively I paid her less than 5%.

 

[statsman]

If people keep paying them, they'll keep adding extra fees and costs.

 

[ShokWaveRider]

If people keep paying them, they'll keep adding extra fees and costs.

This sounds very much like the Tipping complaints.

 

[pjigar]

I've heard those commissions are negotiable as well, but I never tried in my few home transactions.

I have never paid more than 4.5% for selling my properties: 3% for buyer's agent and 1.5% for my agent. I ask for 1.5% cash back/credit at closing if I buy a property. I think 1.5% for either agent is plenty for the amount of work they do.

PS: I have done over a dozen real estate transactions.

 

[Fermion]

Shh, you don't want to trigger the complaint fee!

 

[frayne]

Don't check your cable or phone bill.

 

[aja8888]

Shh, you don't want to trigger the complaint fee!

I'm waiting to see the fee on the summary of fees.

 

[Fermion]

I'm waiting to see the fee on the summary of fees.

There was some movie that had the couple signing for a house, with all of the fees and things listed. Near the end, the agent said they could keep the pen. Later, they saw a charge on the final tally that included $2 for the pen.

 

[jollystomper]

There's not much you can do about fees, unless one is willing to not do business where those fees are charged. In some areas of commerce that can be near impossible.

In truth, what is more of a problem is the inability to disclose those fees well upfront of when one wants to make a purchase decision. For example, if I see a car from a dealer online that I am interested in, I contact them and first ask "what is the bottom line, out the door price, including all fees and taxes?" The reply I usually get is "when can you come test drive the car, it may not be available for long." I reply "I am not interested in test driving the car until I know what the final price is". I might get all the information after a few more email exchanges.

I have encountered similar things when evaluating phone/internet/cable TV service, sanitation service, etc. If you give me the fees ahead of time, I can choose to deal with them. It is more annoying when they are suddenly introduced well into the transaction.

 

[Route246]

I try to vote with my feet whenever possible. Sometimes it is inconvenient but as long as customers pay fees they will be charged unabated.

 

[Jerry1]

It's like when you buy a car - they add on a document handling fee. They add on the maximum allowed by State law and then when you ask what it is, the wordsmith the answer to make it sound like they're saying that it's required by the State. Such BS. In one sense I pay it but since I negotiate an out the door price, I don't really care how they break it out.

 

[audreyh1]

The fees that stack up are the ones that get tacked onto a condo or VRBO/AirBnb rental!

In general with the cleaning fee, required damage waiver, booking fee, property management fee, not to mention local lodging taxes which are high in tourist areas, you are paying quite a bit more than the initially quoted nightly price. You often need to stay 6/7 nights to reduce some of the one off-fees.

 

[Midpack]

The fees that stack up are the ones that get tacked onto a condo or VRBO/AirBnb rental!

In general with the cleaning fee, required damage waiver, booking fee, property management fee, not to mention local lodging taxes which are high in tourist areas, you are paying quite a bit more than the initially quoted nightly price. You often need to stay 6/7 nights to reduce some of the one off-fees.

+1. I looked into hotel rates at the next oceanside resort we're planning to visit this Spring. Of course there are rates plus the usual hotel fees (why they can't just show totals is beyond me).

I noticed there were VRBO/AirBnb rentals at the same resort closer to the ocean, and when I looked at the base rates, they were about the same as the hotel base rates Then I looked a little deeper and those fees were ridiculous - WAY more in total than the hotel.

So hotel it is - we don't spend our vacation time in our room anyway, mostly just a place to sleep and shower!

It won't ever happen, but I wish all products and services were required to publish rates WITH all fees. Published (base) prices are often meaningless.

 

[John Galt III]

There's not much you can do about fees, unless one is willing to not do business where those fees are charged. In some areas of commerce that can be near impossible.

I have encountered similar things when evaluating phone/internet/cable TV service, sanitation service, etc. If you give me the fees ahead of time, I can choose to deal with them. It is more annoying when they are suddenly introduced well into the transaction.

Luckily my cable company gave me accurate info about the 'bottom line'. I was surprised that my first bill was exactly what they said it would be. More than half of the bill is for 'fees', but the total they told me was accurate.


I agree most places try to avoid talking about what the 'bottom line' will be.

 

[FLSUnFIRE]

The last time I bought something significant with a "contract" (my current car) I told them I only care about cost out the door and told them I'd happily pay $30,000 in fees and $1 for the car if that's what they wanted and that bottom line is all that mattered.

 

[freedomatlast]

The last time I bought something significant with a "contract" (my current car) I told them I only care about cost out the door and told them I'd happily pay $30,000 in fees and $1 for the car if that's what they wanted and that bottom line is all that mattered.

That scenario would save some sales tax.

 

[ShokWaveRider]

That scenario would save some sales tax.

I lease and that is exactly what I do.

 

[Cayman]

Anyone else sick and tired of all the new fees being invented for anything and everything?

It used to be when you bought real estate through a broker, the 6% commission paid for by the seller was enough.

I just put in an offer to buy a property that would be mainly for conducting my hobbies, and on the form for the estimated closing costs, I see a "Broker Transaction Fee" of $495. When I asked what that was all about, they said we do that for all transactions now. I mentioned when I bought my primary residence in 2020 there was no such fee, so the realtor said they must have suspended it for Covid, whatever that meant. Anyway, I pushed back and they eliminated the fee, but enough already!

My recent RE transaction involved the same $495 fee that you were hit up for. I called the realtor and told him no go. He blustered, I didn't cave and then he waived it. I would have walked.

 

[EastWest Gal]

My recent RE transaction involved the same $495 fee that you were hit up for. I called the realtor and told him no go. He blustered, I didn't cave and then he waived it. I would have walked.

Good for you. I hope we are all in a position to do that.

 

[Cayman]

Good for you. I hope we are all in a position to do that.

My spouse says we would have paid... so there's that. Anyhow, lesson is to question those fees if you're bothered by them. .