Do Minneapolis Duplex Buyers Have To Pay A Consultation Fee?
One of the most common misconceptions held by first-time duplex buyers is they have to save money not only for a down payment, but to pay a Realtor as well. In fact, some even believe they have to pay a consultation fee simply to have a sit-down conversation with an agent.
Here’s how it typically works:
Most Of The Time
- The seller often either agrees to pay the listing agent, who in turn shares a portion of the commission with the buyer’s agent at closing.
- Since the NAR settlement in 2024, however, this may also be something the seller chooses to negotiate as part of the purchase agreement. Most of the time, the agree to do so.
Do You Have To Sign A Contract?
With the new real estate commission rules (post-NAR settlement in 2024):
- Buyer–broker agreements are now required in Minnesota and many areas before an agent shows duplees.
- These agreements may spell out whether the buyer owes:
- A flat consultation or retainer fee
- An hourly rate
- Or a percentage-based fee (which might still be paid by the seller if offered in the listing)
In Practice
Many buyer’s agents still waive consultation fees and get paid through the seller’s offer of compensation.
- Some Realtors may charge an upfront consultation or retainer fee to ensure serious clients — especially if they specialize in niche or investment properties like duplexes. I do not.
- If you do pay a fee, it’s often credited back at closing.
What to do before signing
Always review:
- Whether there’s a non-refundable consultation fee
- How your agent will be compensated if the seller doesn’t offer a co-op commission
- If you can cancel the agreement without penalty
Duplex Chick’s Advice
- Ask early: Before signing anything, ask your agent if there’s a consultation or retainer fee.
- Read the agreement: Make sure you understand how payment works if the seller doesn’t offer a commission.
- Shop smart: Choose an agent who knows small multifamily and will help you run the numbers — not just unlock doors.
- Remember: Representation protects you, especially when you’re making an investment purchase.