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artemil, Chaz just owned you. He is actually correct about the fmls information. I'm actually a mortgage banker, and a real estate agent. Seeing this post was before many values have dropped more. I hope the original poster at least countered that deal.
I'm trying to sell my home & received the following offer: $295k (asking $299k), no money down (100% financing), and the potential buyers want me to pay 6% towards their closing costs (6% in seller concessions). Is this typical? 6% seems like an awful lot of money. I don't think they're putting any type of good faith deposit down either. I'm not in a hurry to sell. The home has been on the market less than a month, but this is my first time selling & I've never heard of a seller paying 6% in closing costs in addition to the 5% I'm paying in commissions.
ok don't be confused the 5% in realtor costs have nothing to do with what the buyer is asking for concessions
usually closing costs are not that much but they can be
it seems like since they are getting 100% financing they are also looking to come out of the deal with money in their pocket
come back with 3% that will cover most of their closing costs
You make a good point if I understand you, dncngrl 1964.
Buyers and sellers are well served if they ask to take some time with a Realtor just to sort out the language used in thier own area.
Knowing the difference between inspections, walk throughs, appraisals and assessments, between points and fees, between contract deposits and down payments, for starters...can make all the difference.
The seller's agent and broker get 3 percent and the buyer's agent and broker get 3 percent. All the commission is generally pumped into the sale's price along with other closing costs. A FSBO sale eliminates the whole commission and that can mean that the sales price is more reasonable and the seller might actually make more profit.
Discount brokers work for less commission and offer less "service." The 6 percent agent crowds at groups like NAR hate the discount brokers and have tried to create problems for them.
The seller's agent and broker get 3 percent and the buyer's agent and broker get 3 percent. All the commission is generally pumped into the sale's price along with other closing costs. A FSBO sale eliminates the whole commission and that can mean that the sales price is more reasonable and the seller might actually make more profit.
Discount brokers work for less commission and offer less "service." The 6 percent agent crowds at groups like NAR hate the discount brokers and have tried to create problems for them.
Although your basic concept is ok
there are a few problems I have with your post
1--Most FSBO's will protect an agent who brings in a ready willing and able buyer
2--Realtor groups and the NAR don't hate discount brokerages. we just feel that people get what they pay for and seeing as this is the most important decision they will likely make, it is adventagious for them to use a full service brokerage that is able to see them through from 1st showing to closing and still beyond. I like to revisit past clients periodically to find out if there are things they are lacking, how they are enjoying their home and if there are still any services in the neighborhood that they may need to have
you can't get that attention from a discount brokerage
Although a full service brokerage may cost a little more... if the agent has done a good job and found a great area for the client , they will see returns as the market and area flourish in added equuity to their home
i too would offer 3% sellers assistance. That would be about $9K and I think that is reasonable in this market. We have some people "potentially" interested in ours and they asked for 3% if they put in an offer.
Don't lose the pb in this market...counter with 3% and see what they say. Or, you can counter with $299 AND more of a sellers assist, maybe 4.5%.
Just some thoughts from a seller here!
The seller's agent and broker get 3 percent and the buyer's agent and broker get 3 percent. All the commission is generally pumped into the sale's price along with other closing costs. A FSBO sale eliminates the whole commission and that can mean that the sales price is more reasonable and the seller might actually make more profit.
Discount brokers work for less commission and offer less "service." The 6 percent agent crowds at groups like NAR hate the discount brokers and have tried to create problems for them.
Sorry Bud, but your way off base. Why don't you suggest that to some of your local agents and see if they agree?
1 - Fair market value is the same whether commission is paid or not. If commission mattered in sales price, you would see it noted on appraisals.
2 - Private Sellers (fsbo) do not discount the price of the home. The general concept is they are trying to save money, which means they want it in their pocket, not a strangers. They also seek fair market value.
3 - We don't hate the low service companies. They have the right to join NAR if they like. As a matter of fact many do. NAR's primary objective is to protect home buyers and sellers.
why in the world do real estate agents get paid in percentages???? I mean, a sale is a sale. I don't get paid more or less for what I do, and I trained my whole life for what I do. Real estate agents do NOT school in this manner, and they do NOT deserve to be making percentages off of people that work their BUTTS off in order to even own a home during these times. Real estate agents rip people off, and when I sold, I used the BEST guy in the California neighborhood, and paid TOP dollar and got crap. The house sold itself, period. And they did very little. Certainly I could have handled the sale with a lawyer, no problem, as my brother handled his in Oregon. But, the real estate agents had the people by the you know whats, and wouldn't show any FSBO homes. They just sat. So, they used that leverage to basically, IMO, steal peoples hard earned money.
It would be a much fairer scene if they would charge by the hour, period. LOL, they wouldn't be making very much if they did!!! About one third of what they take now, or less. One day, I really hope that this happens in full. People are waking up and getting sick of the agents greed.
I wish I'd found this forum earlier. When I sold my house the buyers asked for 6% too and my realtor told us 6% was average and she couldn't see in the MLS what concessions others made in our area. By the time I found this forum we'd already agreed to it. Turns out at closing there was numerous junk fees and a 5k 'broker fee' in addition to something on every line. I think there was some fraud going on to get around the cap on seller concessions from their lender.
Sometimes having a 'good' realtor doesn't guarantee good advice in some areas.
why in the world do real estate agents get paid in percentages???? I mean, a sale is a sale. I don't get paid more or less for what I do, and I trained my whole life for what I do. Real estate agents do NOT school in this manner, and they do NOT deserve to be making percentages off of people that work their BUTTS off in order to even own a home during these times. Real estate agents rip people off, and when I sold, I used the BEST guy in the California neighborhood, and paid TOP dollar and got crap. The house sold itself, period. And they did very little. Certainly I could have handled the sale with a lawyer, no problem, as my brother handled his in Oregon. But, the real estate agents had the people by the you know whats, and wouldn't show any FSBO homes. They just sat. So, they used that leverage to basically, IMO, steal peoples hard earned money.
It would be a much fairer scene if they would charge by the hour, period. LOL, they wouldn't be making very much if they did!!! About one third of what they take now, or less. One day, I really hope that this happens in full. People are waking up and getting sick of the agents greed.
sweety you really don't mean you would like to pay us by the hour
my day starts at 6 am and sometimes goes to midnight 7 days a week
and realtor that won't show FSBO's are potentially losing money...
maybe that is their clients perfect house
shoot if we are driving by a FSBO and my client even gives a hint of interst
I pull over
I get out of my car
go and ring the doorbell
ask the homeowner what would be a good time to show their home ..."I have my clients in the car right now"
Usually they say right now or can you come back in 15 minutes
I also make sure I explain to my buyers that because of such short notice that the home may not be as sparkling as a normal show
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