The Rising Cost of Home Buying Due to Hidden Junk Fees in Real Estate.
Real estate brokerages have increasingly embraced administrative fees, also known as transaction fees or regulatory compliance fees, which can range from a few hundred dollars to nearly $1,000. The fees are added on top of the commissions that buyers and sellers already pay their agents and are used to cover the costs of processing paperwork, meeting regulatory requirements, and handling other details associated with closing a deal. Critics call it a blatant cash grab, while proponents say it helps brokerages keep the lights on. The rise of the admin fee raises questions about how many additional costs buyers and sellers should have to bear, especially since home prices have increased by more than 40% over the past three years.