Long & Foster

I was buying a home that was listed by a Long and Foster agent, and was fairly happy with the seller’s agent’s professionalism. Several days after submitting my offer, I noticed on the buyer’s worksheet that there was a $ 345 administrative fee from Long and Foster (reminder: Long and Foster was the SELLER’S agent, not mine). I called to ask what this was for and why the buyer would pay the seller’s agent’s admin fees. They had no real explanation other than saying that costs for them have been going up. They also told me that the seller has to pay this fee as well, as if that is some sort of consolation. This means that on top of the 3% commission that they already get paid on the seller’s side (an additional 3% if they also represent the buyer), Long and Foster gets an extra $ 690 for every deal for what they vaguely label as administrative fees.
I escalated the matter to the seller’s agent’s supervisor, Guy Sabatino, and he was very indignant that I was even asking about this. He ended up getting angry that I would challenge this and he cut the conversation short. I also escalated it to another supervisor, Cindy Ariosa, and she was equally as indignant, as if they were beyond reproach. I never did get a good explanation of what all this extra money goes toward.
So, a big warning! This company charges an extra $ 345 to the seller AND the buyer for every deal. Incidentally, I asked my mortgage broker if he was familiar with this practice and he said he had heard of it and it is generally considered a «shuffling paper fee» by people in his industry. I also researched it on the web. Many articles have discussed what a dubious business practice this is and the legality has been challenged in many states. See this article from NBC.