- Joined
- Aug 18, 1999
I posted about this is the Waiting to Pass ROFR thread - I think I was the first. I'm in ROFR now on a VGC resale through Fidelity. Found out about the $195 admin fee AFTER the negotiations were over through an email from Fidelity with the estimates of my costs outlined.
There it was - right with closing costs, etc. - admin fee. When i called to ask, I was told since I was a repeat buyer from Fidelity they thought I already knew about it so didn't bother telling me. The date of the email was 1/17, so since the fee started on 1/1 that' hard to swallow. I hadn't bought another contract from them in those 2 weeks.
I'm starting to think this topic needs its own thread so people will have this info going into their negotiations, unlike me, and be able to factor this cost into what they want to pay.
Since it's a flat fee it's very regressive so buyers looking for small contracts will have to be extra mindful of how this impacts their price per point.
Sorry to hear evidence that the fee is not clearly disclosed until after an agreement is reached. That just seems wrong and IMO, the reason given is an example of very poor business practice.
Still, it's the overall price of a contract that would be important to me. As long as that is acceptable to me (with the fee factored in), it would not stop me from doing business with Fidelity if they had the best contract for me. They'd be the last place I'd look though as the fee adds an additional "complication" to the negotiations. Just my opinion FWIW.