3.5% is the minimum down payment on a FHA mortgage. The seller is allowed to pay up to 6% of the purchase price towards non recurring closing costs. You do not have to pay anything towards the buyers' closing costs. That is all negotiable with the purchase price.
And if through a broker, is the broker a Full Service Broker or a Limited Service Broker?
I cannot even imagine an agent affiliated with a Full Service Broker telling you that Seller MUST pay downpayment for FHA loan buyers or even this one particular buyer that put an offer on your home - IF it was true, it would be an entirely another can of worms, wouldn't it?
If your home is listed with a Limited Service Broker, well, as the saying goes: "you get what you pay for."
If you are selling as FSBO, are you sure the Buyer Agent did not mean that you, the Seller, need to pay 3.5% professional fee to the Selling Broker representing the Buyer?
Could you clarify the 3.5%?
Many FHA buyers ONLY have the 3.5% in savings to put towards the required down payment; and if this is the case, then the buyer will need some closing cost assistance or help from you as the seller. And if you are unwilling to pay some money towards their closing costs, then that decision may impact truly whether or not that buyer can purchase your home. Again, they need the down payment of at least 3.5% plus typical closing costs for a purchaser is 2.5%, give or take. So, your agent may be trying to communicate this to you.
It's all negotiated, and your agent should be negotiating hard for you, while also making certain he/she is following your desire to get your house sold.
Hope this helps; feel free to email/call if I can give any 2nd opinion, behind that of your agent.
Keller Williams Realty
You are not "required" to pay any closing costs without a negotiation that all parties agree to.
You definantly do not pay the buyer's downpayment, which only leaves the commission.
If you're selling on your own, be careful.
If your Realtor says your are required to pay 3.5% of the buyer closing costs, they're wrong. You're not required to pay any of the buyer closing costs - you can if you want to but you don't have to.
You can elect to pay $0 if the buyers agree to it. As with virtually any part of a real estate negotiation - price, terms and conditions are what's agreed on between the parties to the contract.
Lisa Moroniak | REALTORÂ® | Service360Â°
SFR - Short Sale & Foreclosure Certified
Keller Williams Realty
Licensed in VA