In a different thread I wrote a post how I conduct business pertaining to "retainer fee." How does your firm handle the "retainer fee" issue or what is your opinion on this subject?

Part of my post included:

"In my area of the real estate industry, retainers fees are just part of the trade. They are payable upon contracting for services. When agreed to milestones have been reached, the assigned fee is deducted from the retainer fee with a monthly accounting to the client. All fees are placed into the clients trust account."

"In my opinion and if I were to reenter the residential markets, I would naturally require a retainers fee. My time and expertise are well worth renumeration. As milestones are meet for professional services, as outlined in the retainer fee agreement (buyers brokerage, seller brokerage) it would be deducted from the fee. Any outstanding amounts remaining at time of expiration of the service contract, or at time of closing, will be refunded to the client or attributed to the clients closing fees or downpayment (however previously agreed at the start)."

"Attorneys, in most instances require a retainer fee, doctors and dentists most likely require some form of upfront fees if the patient doesn't have insurance, builders certainly require upfront fees as well. If I or anyone associated with my office were to agree to expend their valuable time and expertise, the client will be required to demonstrate their commitment and loyality in return."

"In most of the other sectors of real estate, retainer fees are a natural part of the trade. Residential is a different animal. If I were to be asked for such a fee from a residential agent/broker I'd feel as if I were dealing with someone who placed a value on their time and services. As a client, I would expect more from that professional than from someone working in hope of earning a commission only, and which may or may not happen."

What are your thoughts...

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[B]J. Christin Gray
Land Use Planning and Real Estate Developments
JC Gray & Associates
Portland, OR

I think good agents could command this. The ohter 95% of them couldn't.

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Drew T. Nichols
Greenville SC Real Estate