Will FSBO Home Sellers Offer to Pay the Buying Agent’s Commission Now?
They usually ended up doing just that.
But now that something that has always been negotiable, has been ostensibly and publicly cured, the real estate industry will just have to figure out a way to get back to normal.
If a house costs $10 and it takes a commission of $2 to sell it, then the seller would net $8 under the old method.
Buyer’s Agent Commission
The buyer paid $10 for the house and was able to qualify for a loan at that amount. Under the new method, the buyer would pay $10 plus the other $1 (or $11.) They may or may not qualify now. Or be able to afford the new payment.
It depends on which side of the closing statement it appears.
Most lenders do not want to see commissions in a contract, therefore, they now are agreed to on separate parallel agreements.
Occasionally, to incentivize a sale, a seller may offer an interest rate buy-down equal to a good bit of money paid from the transaction in order to make the monthly payment of the house more affordable. Is this, then where we end up?
Cost of Sale
If a can of beans costs 5o cents at the grocery, and the cost of transportation to get it to the grocery goes up a penny, the grocery usually raises the price of the beans that penny, so they can still make their profit, what ever it needs to be for that grocery store. The buyer pays the new price for the beans, not the old price plus a transportation fee. This is economics. It’s not arbitrary and it really can’t be legislated.
Photo by Dillon Kydd on Unsplash
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