ASK YOUR AGENT ABOUT A REAL ESTATE PROCESSING FEE before you engage the agent to act as your representative in a sale.
From time to time I run into a real estate agent who asks for the buyer to pay a real estate processing fee at closing. This creates a couple of problems.
One problem is that I find most of the time the buyer has no idea they have to pay a fee. Now I've been around long enough to know there is a lot of info that changes hands in the home buying process and folks often don't remember everything.
Another problem is that we can't just slap a fee on the settlement sheet at closing that was not quoted in our figures up front. Since the new TRID guidelines we have to be very specific about fees and not every brokerage charges a fee.
Since I don't see this as a fee charged by all brokerages in Kentucky, buyers should ask about it before they engage a real estate agent to assist them. It is a closing cost no matter how you look at it. What buyer doesn't want to save $295 in closing fees?
From another point of view, I've been in the housing/lending industry for over 20 years and I remember when the homes selling for $150K today sold for $75K. The logical question is that the 3% commission for selling the home was adequate when it sold for $75K, so why not at $150K.
As a buyer searches for the agent to represent them, they should also ask about the real estate processing fee, and how that can be paid outside of closing if they choose an agent who has the processing fee.