A New Trend: Real Estate Buyer Agreement Fees

July 26, 2012

istockWhen we hear the word “fee,” we are tempted to immediately find someone to blame. But, what happens when the real estate industry uses fees as an everyday transaction within buyer agreements? According to Chicago Agent Magazine, Koenig & Strey is requiring buyer clients to sign an exclusive buyer-broker agreement with a $250 fee attached to the document upon a successful closing. As part of Koenig’s standard exclusive or non-exclusive buyer agreement, the $250 fee is charged to the buyer only if they purchase a property. As a result, Koenig & Strey is forcing brokers and agents to rethink how they do business in the Chicago real estate industry. Although many agents questioned and scrutinized Koenig’s new business plan, others applauded the company for its initiative during the tight economy.

Naysayers argued that the business policy rarely exists in the Chicagoland market, and as a result has brokerages and agents considering implementing the fees. However, Koenig & Strey aren’t the first to have this bold and savvy initiative. Mandatory buyer-broker agreements and fees have existed in other real estate markets in the U.S. for decades. For example, the state of Florida has for years been charging non-negotiable fees for buyers and sellers with rates higher than those of Koenig & Strey.

Koenig & Strey is a real estate company with over 1,000 real estate professionals throughout the Chicago. They offer brokerages services, mortgage originations, homeowners insurance, home warranties and title and closing services.

About The Author

Read All Stories By Brittany Henderson

Brittany Henderson is currently the salon coordinator at Accent On Hair, Inc. in Augusta. Accent On Hair has been in business for 30 years! In the summer of 2012, she was a public relations intern at Marketing RELEVANCE. She writes news releases and blog posts about everything real estate.

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