Re: ‘ "Junk fee" backlash echoes online‘ (May 29)

Dear Editor:

Those (so-called "junk fees"), in my experience, are part of the independent contractor agreement between the agent and their brokerage. They have been put there because of the demand by agents for ever-increasing splits without regard for the cost of the services the brokerage must provide. So, as splits have increased in favor of the agent, various fees for specific services have been implemented — and agreed to by the agents so that the brokerage can survive.

The agent who cannot justify charging a full commission to the client ends up discounting that item, while in most cases telling the client that "my brokerage/broker is charging these fees to you" in an attempt to gain empathy.

In the above, those junk fees are exactly that when an agent attempts to pass them onto the consumer. Those fees are not junk when they are charged by the brokerage to the agent in order to have a business model that allows the broker to remain in business providing service to their agents.

Allan Bernardi
Broker, CEO
Dolphin Real Estate
San Mateo, Calif.

***

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