You are here:

Real Estate Home Mortgages/Raising sales price for seller paying closing costs

Advertisement


Question
Hi,

My appraisal has come in 2k over the sales price for the condo I am buying. My agent has been suggesting that we negotiate the sales price to 2k higher and have the sellers pay 2k of my closing costs in return. I am skeptical of this as I see no benefit for me since I am fully capable of paying my closing costs. And since the agents are paid commission based on the sales price, I suspect that is the only reason he would suggest that. Is there some other reason for me to do this?

Thanks.
Joe

Answer
Thanks for checking in.  The main reason for doing what he requested is to have you pay less money at close.  Doesn't sound like this is a need for you so I don't know that you really have a benefit.  Many realtors default to that because they assume everyone wants to bring less money to close, however there is a portion of the population that is just fine with the extra cash to close.  He probably just needs to learn to listen better.  

With that said, I doubt its over his commission.  on 2,000.00 he would only make 20.00-120.00 tops on that increase, pending his relationship with his broker and if there is a sellers realtor involved or not.  I doubt anyone would be suggesting the change for that small of a commission increase, but of course I don't know this person so I cannot speak to their motivation, only it doesn't make sense that he suggested it for the money.  My guess is he think he is doing you a favor but isn't listening to what you are saying.

Feel free to follow up with any other questions.  I hope that helps.
About Real Estate Home Mortgages
This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here

Real Estate Home Mortgages

All Answers


Answers by Expert:


Ask Experts

Volunteer


Mark Schow

Expertise

Can: reverse mortgage, mortgages of all types, debt management and settlement, foreclosure problems, real estate investment strategies. Can't: real estate law, standard banking outside mortgage and debt.

Experience

2002-2004 President of the Utah Association of Mortgage Brokers (UAMB) 2004-2008 Board member UAMB, Fraud task force chair, PR chair, Legislative chair. 2002-2005 Delegate to National Association of Mortgage Brokers, Legislative committee. 1996-2008 COO Debt Free Living- Now Debt Fast Track. Founder of company- consumer debt elimination company. 1994-2008 President Secured Financial Freedom. Mortgage broker, serviced nationwide, 120 employees and handled real estate investment loans for the Carlton Sheets group and some Rich Dad clients. 2005-2011 ARES, LLC. Owner, Manager. Private money investments, business consulting. 2011- present, Reverse My Mortgage, LLC. Managing Member. Reverse mortgage education, marketing and sales. 2011- present. Salt TV Network. Financial contributor, Sales Manager.

Organizations
UAMB, NAMB

Publications
Ezines.com, Authorstream.com, articlesbase.com, articlealley.com, yahoo answers, wiki answers, UAMB newsletters.

Education/Credentials
High School- Alta High graduated 1984 Brigham young University- 1986-1991 Business Finance Major

Past/Present Clients
Salttvnetwork.com, Doreen Stein, PEI institute, Franklin Covey Coaching, Capital Financial Group, the rest are consumers- cannot give out names due to privacy but have had thousands of clients both for debt elimination and mortgage work.

©2016 About.com. All rights reserved.