The RE/MAX Associates Louisville Real Estate Blog

What is A Transaction Fee

One of the fees that comes along with buying a house is a “transaction fee”. This one is often forgotten, but it’s one of themes cubical ones. This is a sizable chunk of money that is used basically for processing all the paperwork involved when buying or selling a house. 

A transaction fee is also called a “broker service fee” or “admin fees”. It’s the cost of making the transaction happen, the two biggest ones are managing the deal itself, and keeping up with and storing the paperwork. It’s what the brokerage charges the buyers/sellers. Because it’s the buyers/sellers who are paying it, it’s the real estate agent’s job to pass this cost along to them, otherwise the agent will probably lose that out of their commission. 

Pretty much, the seller’s agent will pay the brokerage the fee, and pass the fee along to the seller. The fee can be anywhere from $300 - $650. The dime doesn’t stop here, here are a few other fees that are linked in with the transaction fee. 

Transaction fees can also involve escrow, title homeowners association, city and county transfer taxes, Some of these fees get sent straight to the city. Like in San Francisco, the buyer usually pays for the escrow, title, and whatever homeowners association move-in fees are involved in the transaction. On the other hand the seller will be paying the city and county transfer taxes, along with the HOA move-out fees. 

Some other places, those roles are swapped or changed slightly. 

Compliance fees

Sometimes when you buy a home it isn’t exactly in the best shape. You’ll need to spend some extra money on compliance fees, which are getting your home compliant with the local codes. Different states, cities, and counties have different compliance fees. 

Parts of the country that are more prone to droughts, earthquakes, and fires...

Changes to Come Within Credit Agencies

There’s going to be a new way o doing things at the credit agencies after the Equifax consumer data hack. The agencies Equifax, TransUnion, and Experian will be receiving embedded regulators to keep any breach, no matter how big or small, from happening again. Companies should be ready and willing to take on this new task-force. 

In order to gain the trust back of the consumer, and the marketplace, and create new ways of doing things and improving their standards, they will absolutely have to put 100% effort and commitment to this. The ways of old won’t protect us anymore and criminals have found ways to circumvent the firewalls. Whatever the new plan to protect us and our information will be, the agencies must welcome it and be ready to get to work. 

The Equifax breach reached 143 million Americans, which is 43% of the entire population. The scary part isn’t only the fact that all the information of almost half the country was exposed, it was when Equifax disclosed it six weeks later! 

In the wake of all this chaos, the CEO took an early retirement and investigations begun.  Keep in mind that this data breach was far worse than the Home Depot’s and Targets’s breach in the last couple years. 

Let’s all hope business leaders and Congress can get this figured out!


Trump's Tax Plan - Maybe

Donald Trump and his Republican colleagues are still working on their tax plan. It’s expected to bring yuge changes to the housing industry. The details haven’t been released just yet, but lobbyists are expecting what is to come. 

One of the biggest changes to come is expecting the corporate tax rate to drop to 20% from 35%. 

During his campaign Trump promised tax relief for the middle class. In his plan he would be doubling the standard deduction that benefits this class. It would also attempt to pay for some of the tax cuts by eliminating the state and local tax deduction, most commonly used by the middle-to-upper-middle classes of the wealthier states like New York, California, etc. The tax break is worth $1 trillion over 10 years, and it’s supported by some representing the real estate market. 

They are still working on this, as the right wing has not quite figured out which tax deductions to cut in order to simplify the tax code. 

Groups are in the mortgage and housing industries are standing against increasing the standard deduction. They say is a huge threat to the mortgage interest deduction, and would decrease home ownership. 

Steven Mnunchin, the US Secretary of the Department of Treasury said the mortgage interest tax deduction won’t be touched during Trump’s time in office. Even though his administration isn’t eliminating it, doesn’t mean it cannot be altered. 

There’s fears among the professionals in the mortgage industry that changing the mortgage deduction could seriously hurt the ownership rate in America. 

Despite Republicans controlling the House and the Senate, changing these laws can be quite daunting and difficult to accomplish. A bunch of the housing organizations are responding to these proposed law changes. They are all writing letters to lobbyists exposing the detriments that will follow. We will see what is to come...