A little known secret is that many of the franchised real estate brokerages earn profit by steering their clients toward certain services during a real estate transaction. Under RESPA, real estate firms and agents are required to disclose business arrangements, which may result in fees or compensation to the real estate agent or brokerage. This is often known as “An Affiliated Business Arrangement Disclosure” which is nearly ubiquitous among real estate brokerages in Pennsylvania. Steering clients toward services enhances profitability.

At High Hill Realty, we actually work for the client. We do not receive any kick-backs or other financial remuneration from third-parties for referrals to services such as title, home inspectors or insurance. When we make a referral, it is based on effectiveness of the service provider. We want our clients to have the best services at the lowest rates plain and simple. When you trust us to make a recommendation you can be sure that it is intended to benefit you and not based on any kick-back intended to drive profit to us.

Another little secret is that most franchised real estate brokerages in Pennsylvania slip “brokerage fees” in addition to commissions. For good reason, buyers and sellers are often confused by the “brokerage fee” line item that shows up on a settlement statement. Typically, these fees range from $250 to $500 and are designed to add profit to the brokerage. High Hill Realty does not charge any hidden fees and receives compensation for buyer representations solely from the seller’s proceeds at closing.

Most egregiously, the Pennsylvania Real Estate Commission and the National Association of Realtors expressly permit dual agency transactions. Dual agency occurs when a real estate agent works on behalf of both the home buyer and seller simultaneously. High Hill Realty will not represent both sides of a transaction as an advocate simultaneously. We think that it is impossible to realistically comply with the ethical duties of candor and confidentiality owed to a consumer in a real estate transaction, while working both sides of a deal. The appropriate way to assist both parties is through a “transactional brokerage” arrangement where the agent communicates to the parties that the agent is merely quarterbacking the transaction and not advocating for one party over another. This arrangement can be useful and avoids ethical pitfalls.

Our commitment is simple, yet unique in the current marketplace. We solely represent the interests of our client and act with transparency, experience and competency to drive success for our clients.