Home Equity and Refinancing
Sales and Customer Service
Is a seller concession the same as a seller contribution And do the agents lose some commission when there is a concession or a contribution?
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What are real estate agents paid?
They are paid an agreed upon commission as per the listing contract between the agent and the seller. Buyers and seller are often charged administrative or processing fees to be paid to the brokerage office of their realtor. Real Estate agents are paid a percentage of the commission they collect based on whatever contract they have with the real estate brokerage that employs them.
How much money does a real estate agent make for each house they sell?
In most cases, they make a percentage of the sale price (called a commission), and that percentage varies. Usually, both the buyer and the seller have an agent, and both get a commission. If the same agent represents both buyer and seller, he gets a double commission. You should call individual real estate firms to find out how much commission they give their agents.
Can you get sellers concession on short sale?
Yes, but the amount of the concession depends on the type of short sale. An FHA Short Sale (under the HUD Pre-foreclosure Sale Program) can include up to a 1% seller concession only if the Buyer is utilizing FHA financing in the purchase. A HAFA Short Sale will allow a seller concession, but the amount depends on the proposed net proceeds to the mortgage servicer.
Asked in Mortgages
What is the commission of a house seller?
The seller of a home does not receive a commission. If you are referring to the real estate listing agent who assists the seller in selling the home, it can vary depending on what is negotiated. In the US 3% is fairly typical in most areas, but it is not unheard of for less of a commission to be paid.
What is 'concession' in real estate?
What is a seller's concession?
It works like this: suppose you agree on the price of the house at, say, $200,000. You then ask the seller for a 3% seller concession. What this means is that you add 3% to the price of the house. That's right, you're now going to pay $206,000 for that house -- but the seller is going to give you that $6,000 back when the sale takes place. You're going to use that money to cover all of your closing costs. It is also a term that can be used for a selling venue at a fairgrounds, amusement park, etc. (concession stand)
Asked in Mortgages, Commercial Property, Arteries
If you sell your business but part of the sale involves a carry back loan by the seller for several years is the seller responsible for paying the commission for that portion to the broker?
How much does a real estate agent make a week?
Is it legal for AA real estate brokerage to charge buyer and seller a processing fee?
What is the purpose of a home seller's concession?
Seller-paid concessions, when used properly, can mean the difference between closing a home sale and losing one. A concession is anything of value added to the transaction by the seller, builder, developer, salesperson or any interested party. A concession may also include any closing costs that would normally be paid by the buyer or cash given to the buyer to lower non-housing debts. Funds received from a relative to assist with a home purchase, or cash contributed from an employer as part of a corporate transfer are not considered seller concessions.
If I'm purchasing a house for 25000 how much do i pay my realtor?
Asked in Real Estate Buying and Selling
Does the buyer have to pay real estate commission to the broker?
What does a 5000 sellers concession mean?
The seller is offering to pay up to $5000.00 of your fees, usually closing costs. Be careful with this, as many lenders are aware that seller concessions are often used to increase the sales prices, and thus with a goal of increasing the dollar amount of the mortgage for which the buyer will qualify. They put strict limits in response to this practice on available loan programs which specify the highest seller concession that they will allow. So, if you sign a contract that says that the seller will give a $5000 seller concession and the bank will only allow a $2000 seller concession, you may end up not closing, or being drawn into doing a deal on the side for the remaining funds, which would constitute mortgage fraud. Also, just because a house price is $5000.00 higher due to seller concessions, doesn't mean it is going to appraise at the sales price. Loans are based on the lowest of either the sales price or the appraisal price and appraisals are becoming drastically more legitimate. One more thing to remember is that if you are using realtors in your transaction, you may want to also consider having your contract reflect that the realtors will be paid based on the sales price minus the amount of concession, instead of letting them make commission on an inflated sales price. If you do not make sure that you specify this in the beginning, you will be over-paying for the oversight. I believe a big reason that realtors encourage a "seller's concession" versus a lower sales price is so they can retain a higher commission. Further, any home that you cannot afford to get a mortgage on within the perameters of the loan program, is probably a home you should pass on because it is a strong signal to buy a home you can more easily afford. Just ask anyone who is currently in foreclosure if they wish they had done just that.