Las Vegas Homes, Condos, Land and Commercial Real Estate Blog

Las Vegas Realtors, commercial real estate agents or mortgage brokers get paid when a real estate deal is recorded. And the way these real estate professionals get paid is by the commission that is usually charged to the seller. Sometimes the buyer has to pay a portion of the commission if he/she signs an exclusive buyer’s contract with a buyer’s agent so that the buyer’s agent makes a fixed commission, like 3%. This frees the buyer’s agent to look at all types of properties such as for sale by owner or auction properties that do not pay a commission to the real estate agent. The savings gained from signing a buyer’s contract with a good buyer’s agent could dwarf the 3% or less commission paid to the agent; as any commission paid to the buyer’s agent by the seller will be deducted from the 3% paid by the buyer.

What are documentation fees, processing fees or storage fees in a real estate deal?

These fees are invented by the real estate and mortgage brokers in order to get additional money on top of the commission from the buyer and/or the seller.

To me it is like going to the buyer or the seller of real estate and telling them Mr./Mrs. Buyer or seller, I don’t believe that I have been paid enough on your deal, could I have more money? Keeping in mind that a Realtor can make $2,500 or more on a $100,000 real estate deal, I think that commission should suffice; I hate greed.

Although our broker charges $375 “documentation and storage fee” we always pay it ourselves and count it as a business expense, we have never ever charged our customers any fees in connection to our brokerage and never will. Our services are always free to Las Vegas real estate buyers, unless we sign an exclusive buyer’s agent contract that spells out the terms exactly.

In a closing my buyer got hit with 2 processing fees that were connected to one mortgage and I was very unhappy about this.

Nevada and United States laws are only a start for us and our ethics goes much further. For example showing properties based on commission or dual agency are perfectly legal in the State of Nevada, but strictly prohibited for my team. Charging a documentation fee is legal too, but I believe it does not serve our customer’s interest. A criterion for all our actions in a real estate deal is one thing and one thing only:

Does it serve our customers interest?

 And that should be the criteria that every action of a real estate agent, Realtors or mortgage officer’s actions should be measured against.

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