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Get ready for yet another cost when buying a home: Junk fees
NPR • • business
Key Points:
- Homebuyers are increasingly facing unexpected administrative fees, often around $425 or more, added by real estate agents or brokerages at closing, which can be a significant immediate out-of-pocket expense.
- These fees, sometimes called document storage or regulatory compliance fees, have been spreading nationwide and collectively cost buyers and sellers nearly $2 billion annually, according to the Consumer Policy Center.
- Some real estate agents criticize these fees as unnecessary "money grabs," noting that agents already earn substantial commissions and that fees may be passed on to clients to offset brokerage costs or recruit agents.
- The fees are not always clearly disclosed in contracts and can be added last minute, prompting calls for buyers and sellers to scrutinize contracts carefully and challenge suspicious charges.
- Despite the fees, buyers like Kelly MacDonald manage to negotiate or avoid them, with MacDonald successfully having her home seller cover the disputed $425 fee when purchasing her $445,000 home.
