- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Buyer paying the Buyer Agent a fee
Posted on 10/11/16 at 8:57 am to ItNeverRains
Posted on 10/11/16 at 8:57 am to ItNeverRains
quote:
Its very simple. House gets under contract at 500k. Appraises at 500k. Buyer now wants lender to back a loan on a house for 515k to cover agent fees?
Never going to happen, nor should it.
Right now, a house goes under contract for 500K. The seller gets (assuming only deduction is for commission) $470,000. House appraises for 500K, all is well.
Under new system, house goes under contract for 485K. To get the selling agent the same 15K, we would switch to a slightly higher commission rate. So now you have a sales price of 485K, seller pays 15K commission so he clears 470K, and buyer also pays a commission of 15K, which he finances into the house.
The total lent is still 500K. The appraisal price is still 500K. Nothing changes.
1
Posted on 10/11/16 at 7:19 pm to LSUFanHouston
quote:
Under new system, house goes under contract for 485K. To get the selling agent the same 15K, we would switch to a slightly higher commission rate. So now you have a sales price of 485K, seller pays 15K commission so he clears 470K, and buyer also pays a commission of 15K, which he finances into the house. The total lent is still 500K. The appraisal price is still 500K. Nothing changes.
Except lenders base the value of the property on the lesser of the appraised value and the contracted price and that number is what the loan to value is based off of. In your scenario they would only lend $485K even at 100% LTV.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News