eBay increasing real estate fees

eBay plans to raise its real estate listing fees, with some fees increasing by up to double previous rates.

The leading online auction site will raise by an additional $50 to $100 listing rates for all residential, commercial or foreclosed property.

In addition, the company will now charge $100 for most listings that last 10 days or less, up from $50 previously, eBay said. The new rates will go into effect March 7.

eBay spokesman Kevin Pursglove said the new fee structure will allow the company to continue to build its marketplace sites. "This allows eBay to build revenue that goes back into investments in our community and improving the product," he said.

Earlier this week, eBay announced that it would eliminate its HomesDirect brand and incorporate the site's listings into its real estate division.

San Jose, Calif.-based eBay acquired HomesDirect last August, one year after the auction giant launched its real estate site.

The company increased fees on most listings across its site last month. As part of the rate increase, eBay began charging for its popular "Buy It Now" feature and increased listing fees from $25 to $40 on its eBay Motors site.

Unlike with other items listed on its site, eBay does not consider real estate auctions to be binding contracts, and the company does not charge a transaction fee once auctions end. But Pursglove said the company may consider changing that policy later this year.

eBay does not plan to raise all real estate rates. For 30-day auctions of time-shares and land, the company is cutting rates from $100 to $75. eBay is leaving unchanged other fees for time-shares and land listings, which range from $50 to $200.

Currently, eBay uses the same rate structure for all real estate listings. By separating time-shares and land from other listings, eBay is recognizing the different prices seen by those listings, Pursglove said.

"We're establishing a fee structure that's closer to the value that is represented by those respective markets," he said.