Expert: Hans Weber, Licensed Broker Associate - 12/8/2006

Question
Hello Hans, am I obligated to pay a higher commission fee if my agreed upon selling price was adjusted up 10K by the broker to accomodate the buyer who wants to 'borrow' the closing costs from the bank?  Also do you have any insite into Westchester county (NY) real estate closing process on a condominium?

Answer
Hi Joy,

Thank you for your question.

I would expect the commission to be based upon the agreed upon selling price before the adjustment.

The closing process is similar to that of a house.  After you have a buyer and agreed upon terms the buyer can have a n engineering inspection.  Then your attorney will send out contracts to the buyer's attorney.  The buyer will review the contract with their attorney and sign and have them returned to your attorney with the escrow check.  If all is in order you sign the contracts and one goes back to the buyer and your are now in contract to sell.  The buyer then proceeds with their mortgage application if the are getting one and their attorney orders a title search from a title company.  The mortgage bank has a property value appraisal done.  Once the mortgage application is complete and processed and approved the bank issues a commitment letter for the buyer's mortgage and you are ready to close the sale.  The attorneys arrange a date when all parties are avaialable.  The day before the closing the buyer does a final walk through of the property to ensure that everything is as expected in the contract.

Hope this helps you.

Hans