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?
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.
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Thanks. I guess that is true. It's probably not commission related.
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