Junk fees are certainly not unique to real estate! If you've bought a car lately you know what I'm talking about.

There's been a fair amount of discussion about the junk fees you might see from lenders. But the junk fees that come from the real estate company are not as much discussed.

Most real estate companies are now charging something called an Administrative Fee or something similar. The amounts of these fees vary widely, but in general are probably somewhere between $200 and $500. How they're structured varies with the real estate company. In some companies, the company sets a fixed amount. In others, there's a base amount and the real estate agent is allowed to tack on extra dollars and keep those in their own pocket. And there are some companies that have no fee, but whose agents can choose how much they'd like to charge and keep that money.

Now, on the buyer's side I can see some justification for this fee. Believe it or not, real estate companies margins are, by and large, pretty thin. And there is a cost for processing the paperwork associated with a buyer's contract. And, the income, in many cases, is less certain on the buyer's side.

However, it seems to me impossible to justify the charge to the seller. How do I say "So, Mr. & Mrs. Seller, that 6% commission is just not quite enough and I'm going to charge you an additional $300." Talk about nickel and diming someone! I've heard all the proposed dialogues on how to present this to your clients. But wrong is wrong and there's no way to justify this fee in my mind. Yes, you'll get some sellers to swallow it. But just because they'll agree doesn't make it right!

Since the company I am currently affiliated with insists on charging this fee, I eat it myself. It seems like the right thing to do for my clients.

So, if the listing agent you're working with is talking about an additional fee on top of whatever their commission might be, it would be a good idea to ask them what it's for!