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Old 01-29-2018, 05:51 AM
 
10,153 posts, read 13,855,421 times
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Quote:
Originally Posted by jackmichigan View Post
The commission would be determined by the terms of the listing agreement.
There would be no listing. Cash buyer and seller wants a seller agent to protect their interests. Would the seller agent (paid by the seller in this example) get the full 6% or only half of it.
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Old 01-29-2018, 06:06 AM
 
Location: northern va
1,555 posts, read 1,995,190 times
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Quote:
Originally Posted by howard555 View Post
There would be no listing. Cash buyer and seller wants a seller agent to protect their interests. Would the seller agent (paid by the seller in this example) get the full 6% or only half of it.
The seller should have a listing agreement regardless. It outlines the representation for the selling agent for the seller, it doesn't just speak to marketing/MLS/etc, and what the agent's duties are for the transaction. The selling agent likely has brokerage disclosures that they'd want a seller to sign also, to be incorporated into the overall agreement.

In that agreement, it would spell out the compensation received by the agent. If you're the seller, and don't want to pay 6%, then have the language reflect the % you (and the listing/selling agent) agree to.
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Old 01-29-2018, 07:21 AM
 
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Yes, the seller should have outlined these terms in putting the home for sale. Is the house not listed at all and they haven’t retained an agent yet?

If so, I personally wouldn’t agree to more than 2-3% if it were my house. Especially if the agent didn’t do any work to secure the buyer and is just helping with paperwork.
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Old 01-29-2018, 08:00 AM
 
6,360 posts, read 7,333,983 times
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Quote:
Originally Posted by howard555 View Post
There would be no listing. Cash buyer and seller wants a seller agent to protect their interests. Would the seller agent (paid by the seller in this example) get the full 6% or only half of it.
Then hire a good real estate attorney.

Without a listing agreement, in many states what you are proposing is for the agent to practice law without a license. If you already have a Buyer lined up, hiring a good attorney should also be cheaper. To save even more money, have a title company handle the closing and paperwork (provided you live in a state where title companies handle closings). Your attorney can review what the title company produces. There is no need for an agent in the circumstance you describe--unless you're concerned about the adequacy of the sales price, in which case an appraisal may be in order.
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Old 01-29-2018, 08:05 AM
 
10,272 posts, read 6,506,221 times
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Quote:
Originally Posted by howard555 View Post
They said they would pay cash. But cash offers do not impress me because if they got a mortgage, I'd get the cash any.
Until I know more I won't know how they will pay cash. I think the couple means they have enough in the bank to pay for it depending on agreement on price. Or their parent in another country has the cash and will buy it for them by sending them the cash via an official bank check, etc.

The only thing I wonder is why doesn't the couple with good jobs get a mortgage. Maybe low credit rating or maybe they are not even legal residents of the USA. (?)
When we talked he did not indicate that he wanted to avoid a lawyer or an inspection, just the real estate commission of 6%.
When someone days they will pay cash it means they have the total amount ready to complete the transaction where if a buyer gets a mortgage it is a longer process and can fall thru for many reasons before their is a clear to close. A cash buyer will not care about an appraisal where a bank will not lend money on a mortgage to a buyer if the home does not appraise for the value of the loan.
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Old 01-29-2018, 01:32 PM
 
1,326 posts, read 529,298 times
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Quote:
Originally Posted by howard555 View Post
They said they would pay cash. But cash offers do not impress me because if they got a mortgage, I'd get the cash any.
Until I know more I won't know how they will pay cash. I think the couple means they have enough in the bank to pay for it depending on agreement on price. Or their parent in another country has the cash and will buy it for them by sending them the cash via an official bank check, etc.

The only thing I wonder is why doesn't the couple with good jobs get a mortgage. Maybe low credit rating or maybe they are not even legal residents of the USA. (?)
When we talked he did not indicate that he wanted to avoid a lawyer or an inspection, just the real estate commission of 6%.
Well one thing cash offers do have over mortgages is that you, the seller, do not have to worry about the bank and their appraisers possibly complicating the deal. Mostly, today, you don't have to worry about them qualifying if they come through a realtor as they should be preapproved. I haven't had a mortgage since the first house I bought. Why? Because we could, not to impress anyone. Our credit rating is very good and we are US born and have been mortgage free since 1985.
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Old 01-29-2018, 01:51 PM
 
1,326 posts, read 529,298 times
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Quote:
Originally Posted by kapikap View Post
well a cash buyer may have funds that are not known about by the IRS, and may want some of the money "not seen" by the government. what occurs on paper gets some type of tax, and what is off is invisible. $100,000 un taxed is a good thing, in some peoples eyes.
What AlaskaEric said. Any cash transaction over $10,000 gets reported automatically to the government. Any transaction under that amount that someone thinks is suspicious (think bankers) it is reported. If the government wonders how you obtained that money they will knock on your door. Real estate transactions are not invisible. Buy a car in cash and it is over $10,000 the dealer has to report it, if the dealer thinks you are offering $9,999.99 to avoid the reporting he may just report it anyway.
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Old 01-29-2018, 01:55 PM
 
436 posts, read 464,968 times
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Cash is cash, whether it comes from a mortgage company or out of this buyer's account directly. BUT, you had better verify that the cash is there and ready to be disbursed. Money has to be there legitimately as well. Had a cash deal in our MLS....over half a million for a property, but paid for with drug $$ from a cartel. Learned after the place was raided and kind of too late. Cash has nothing to do with whether you have an agent or not. If you do, he/she should be pleased to know that you would stiff them at the outset. They can become more valuable to you than you know. A buyer expects lots of concessions when/if they offer cash. I used to tell my clients..."so what", the verifications are the same for everyone.
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Old 01-29-2018, 03:26 PM
 
4,402 posts, read 1,498,117 times
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Quote:
Originally Posted by howard555 View Post
I like the idea of cash but want all the legal documents prepared by a real estate lawyer who handles closings to protect us against any future issues of all kinds including personal injury due to some structural failure. I won't be able to force them to buy home owner's insurance. I want to be protected. Similar to the standard bill of sale when you sell a car. Release of liability.

Once they have the title, that should free you from any future obligation, shouldn't it?
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Old 01-29-2018, 04:05 PM
 
Location: Kansas City North
3,628 posts, read 6,767,586 times
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Quote:
Originally Posted by NorthofHere View Post
What AlaskaEric said. Any cash transaction over $10,000 gets reported automatically to the government. Any transaction under that amount that someone thinks is suspicious (think bankers) it is reported. If the government wonders how you obtained that money they will knock on your door. Real estate transactions are not invisible. Buy a car in cash and it is over $10,000 the dealer has to report it, if the dealer thinks you are offering $9,999.99 to avoid the reporting he may just report it anyway.
The $10,000 cash reporting laws pertain to transactions using good ol’ U.S. greenbacks - actual cash money. There are no reporting requirements if you show up with a cashier’s check for $10,000 or more. Or at least as far as I know.
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