Kelly MacDonald holds her dog in front of her five-bedroom home in a Cincinnati suburb on September 11, 2026. Patrick Apfelbeck hide title toggle title Patrick Apfelbeck Two cats, a dog, a boyfriend and a bedroom. Kelly MacDonald was ready to move out of her small rental home in a Cincinnati suburb and buy her own home. He met a real estate agent at a backyard party earlier this year, willing to help. MacDonald thought he could trust her since they met through a friend. Still, he didn’t let his guard down completely. Since her mother works in commercial real estate, MacDonald asked her mother to review the contract to work with the new agent. “She was sniffing out bad vibes or things that might be weird,” MacDonald thought. Her mother spotted something: a strange $425 fee that the agent had added to the contract. Wanting to know more, MacDonald turned to the place where his research usually begins: Reddit. And soon, commentators were warning him: This is a rubbish rate. Now, a $425 fee is just a fraction of a percentage of the total cost of buying a typical home in the U.S., which can often exceed $400,000. But fees like this must be paid at closing, which means they are not spread over a 30-year mortgage; They are an immediate out-of-pocket expense, which can hurt homebuyers who can barely put down enough money to cover their costs when they get the keys. These fees have different names and explanations, such as document storage fees and administrative fees. And while they have been around for decades, they are spreading and now often charge both home buyers and sellers. The two collectively pay nearly $2 billion in these fees annually, according to new research from the Consumer Policy Center think tank, which called that estimate conservative. “It’s been growing for a long time,” said Wendy Gilch, a fellow at the Consumer Policy Center and co-author of the report. “Consumers didn’t really ask what it was for or were told what it cost,” he adds. “And we’re finding that’s not really the case.” Real estate agents call the fees “greedy.” In actual contracts between consumer and agent, these fees go by different names and come with different justifications, from regulatory compliance fees to administrative fees. Some agents give them another name: money grabbers. “I’ve experienced it and I think they’re bullshit,” said real estate agent April Green in South Florida. “Real estate agents receive a commission on home sales, often more than $10,000, and they usually split it with the brokerage company the agent works for. For Green, that commission makes asking for additional fees feel greedy. Despite that, he’s seen other agents add them throughout his 15 years in real estate. “They just put up $495 or whatever and it was just because they could,” Green said, speaking about the beginning of his time as a agent. “I’ve had a bad taste in my mouth about admin fees ever since, because what are they really for?” A “For Sale” sign is shown posted outside a property in Pasadena, California, on April 7, 2026. Mario Tama/Getty Images North America hide caption toggle caption Mario Tama/Getty Images North America Other agents have also complained, including on TikTok, where some called the fees “irritating and “silly.” agents, Gilch said these fees have spread across the country and seem to be used in most home sales today. Gilch recalled talking to a real estate agent friend in Dallas years ago who said they didn’t have these fees in their area. “And now agents are often charged these fees, with the expectation that they will pass them on to the consumer and then make up for the loss of revenue by charging fees to clients. public data on exactly how far the fees have been extended. “For some buyers that is feasible,” Gilch said. “The fees are not always disclosed. Gilch advises home buyers and sellers to be aware of administrative fees in their contracts, which may have different names. And then, challenge them. He said that’s often enough for agents to give in, as it’s not worth risking the much larger commission they get from the sale, often a five-figure amount for a typical home, for a comparatively smaller commission. But realizing these fees requires being diligent throughout the home buying process. Gilch found that sometimes these fees are added without proper disclosure, sometimes just days or even hours before closing. brokers, told NPR in an email that their members must “act in the best interest of their clients.” This includes explaining and disclosing all contracts related to the transaction in clear, understandable language and avoiding misrepresentation of relevant facts.” Kelly MacDonald ended up purchasing a five-bedroom house. Her new house has a fireplace, a large yard for the dog and is located on a quiet corner. She paid $445,000. “I had to work hard to get it,” she said while looking at her new front porch. But there was at least one small consolation: she refused to pay that amount. Fee $425 from the first contract. Instead, he negotiated to have the home seller cover it. “I feel a little guilty that they paid for it,” MacDonald said. “I think the real estate agent should have paid for it.”
