Episode 13: Agents to blame for ‘junk fees’? Administrative fees charged by brokerages often get a bad rap with consumers and agents, who have derided them as "junk fees" (see story).

But agents’ never-ending demands for more favorable commission splits are driving brokerages to collect such fees, says Frank LLosa of Frankly Realty, in this latest edition of the Wheel Estate Cam.

Llosa says he doesn’t collect administrative fees himself, but defends the right of brick-and-mortar companies to do so.

"I think one of the main reasons for admin fees is not the broker being greedy … It’s the agent’s greed," Llosa said. "The reason the broker is charging the admin fee is because the agents are demanding a better split constantly."

What about new agents, where brokerages may enjoy a 50 percent commission split? Llosa said brokerages have the right to collect administrative fees "across the board, to help the brokers keep the lights on."

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Watch past episodes of the Wheel Estate Cam.

Frank Borges LLosa is the broker, founder and owner of FranklyRealty.com, a real estate brokerage in Falls Church, Va. He is the creator of the Trust Me I’m a Realtor blog and multiple listing service wiki site FranklyMLS.com. You can follow him on Twitter: @franklyrealty.


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