When Kelly MacDonald set out to buy a home in the Cincinnati area, she expected to budget for a down payment, inspection and other familiar costs. She did not expect a separate $425 charge from the real estate agent she had agreed to hire. MacDonald’s mother, who works in commercial real estate, reviewed the agent contract and flagged the fee. MacDonald then researched it online and learned that similar charges are commonly described as administrative, document-storage, transaction or regulatory-compliance fees. The fees are generally paid directly at closing rather than folded into a mortgage, making them especially difficult for buyers who are already stretching to cover upfront costs. A $425 charge is small compared with the price of a typical U.S. home, which can exceed $400,000, but it can still mean the difference between having enough cash at closing and coming up short. New research from the Consumer Policy Center estimates that homebuyers and sellers together pay nearly $2 billion annually in these charges. The organization called its estimate conservative and said the fees now appear to be included in most home sales, with some exceeding $1,000. Wendy Gilch, a fellow at the center and a co-author of the research, said consumers have often been told the fees were simply part of the transaction without being given a clear explanation of what they covered. “Consumers didn't really ask what it was for, or were told it was their cost,” Gilch said. “And we're finding out that's not really the case.” Some real estate agents say the charges are difficult to justify because agents and brokerages already receive commissions from home sales. Those commissions often total more than $10,000 and are divided between the agent and the brokerage. April Green, a South Florida real estate agent, said she has encountered the fees during her 15 years in the industry and considers them unnecessary. She recalled seeing charges such as $495 added simply because an agent or brokerage could impose them. One explanation is that brokerages use fees to offset the cost of offering agents more favorable commission splits as they compete for recruits. Some agents absorb the charges themselves, while others pass them on to clients. The Consumer Policy Center said the practice has expanded geographically. Gilch recalled that an agent she knew in Dallas did not face such fees years ago, but said they are now common there. Consumers may not always get a clear warning. The research found that some charges are added days or even hours before closing, leaving buyers with little time to question them without risking the transaction. Gilch advises buyers and sellers to read agent agreements closely, ask what every fee covers and challenge charges that are not clearly tied to a service. She said agents may agree to remove them because losing a large commission over a comparatively small fee is not worth the risk. The National Association of Realtors said its members must act in their clients’ best interests, clearly explain and disclose contracts, and avoid misrepresenting important facts. MacDonald ultimately bought a five-bedroom home for $445,000. She refused to pay the $425 charge from her initial contract and negotiated for the seller to cover it instead. “I think the realtor should have paid for it,” MacDonald said.