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We had a small debate going on regarding an agent purchasing a home with an FHA backed loan. If the agent receives, say 1.5% commission for representing himself, can they still ask for 6% seller contribution or could they only ask for 4.5%?
I'm not sure I understand why you would think an agent buying a house would be different from any other buyer buying a house. Commissions are separate from the terms of the contract. Whatever is negotiated within the contract with the buyer and seller would be equal no matter what profession the buyer is.
That's the same answer I just got from my broker. I didn't know if they would include a commission payment from the seller on top of 6% back or not or if 6% was all inclusive.
That's the same answer I just got from my broker. I didn't know if they would include a commission payment from the seller on top of 6% back or not or if 6% was all inclusive.
Technically, the commission payment goes to your broker, not you. It is also from the listing broker, not the seller. Your broker then pays you some agreed % of the commission. As said, totally separate from you as the buyer.
rjrcm has the correct answer, I believe. Since the brokerage commission is paid to a licensed Real Estate Broker ( who may or may not pay anything to the agent involved) it is a moot question. The seller is obligated to pay commission to the broker per one agreement, and the sales contract and the loan terms each spell out the terms that apply, the seller assistance part of the FHA program should not be changed unless it somehow details special terms for licensees. Good Luck with your home purchase.
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