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Buying or Selling a Home/Realtor Commission on Sale
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Question
I have a property for sale at $1.1 million. I have a listing agreement with a Realtor for 6%..3 to listing and 3 to buyer. I have an offer with a land trade and cash. The land/property is valued at 900,000 and the cash is an additional 200,000. I want to pay commission on just the $200000. Is this right? My Realtor says I have to pay commission on the acutal selling price of 1.1 even though im only getting 200000 cash and the rest in property and land.
Dear Derek;
While you are only receiving $200,000 in cash the property also has value and can be (presumably) converted to cash. You actual payment is valued at somewhere around the amount of $1.1 million. (Be sure to have the appraisal on the property so that you are absolutely sure of this!) I understand your reluctance to pay a commission on a non-cash item, but you still owe the full commission regardless of the form of compensation. Are you planning to sell the property to cash in on it? If so, then you might offer the agent the listing and a deferred commission. Once the property sells you will pay the remaining commission as well as the new commission for the sale. This may be enough incentive for the agent to accept your terms and wait to be compensated.
Good luck and best wishes,
Jessica Bryan
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Jessica Bryan
Expertise
buying and selling process such as:
General questions from first time buyers
How to market a home
Why choose a REALTOR
How do I find a REALTOR
Should I consider buying or selling without a REALTOR--how much can I save
Should I remodel or move
How much can I expect to gain by fixing up my home before selling
Helpful tips when selling
Helpful tips when buying
finding a good mortgage loan
what is the difference between banks, mortgage bankers, and mortgage brokers
Questions from the general public, people thinking about getting their real estate license, newly licensed.
Fellow professionals who have interests in networking and how to get started
What is a market evaluation and how does it differ from an appraisal what are the different loan programs
services a REALTOR can perform
when to use a lawyer
when to use escrow
what are the regional differences in the buying and selling process
what is the MLS and how does it work
how can the layman access information on the web--listings and other information
These are just a few of the questions. I can suggest that if I am unable to answer a question I will refer the inquiry to a source that can.
Experience
Anyone who is in this business and who dedicates oneself to professionalism has continued to take classes and along with it,additional credentials, awards and honors. I can list a host of them, but my greatest accomplishments happen to be those of getting first time buyers (who didn't think they could afford to buy a home)into a home of their dreams. The look on their faces when I hand over the keys is worth all of the hard work.
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