Home Buying in 44224>Question Details

1948 Ford, Home Seller in 44224

We are selling our house FSBO and the buyers agent listed on the purchase agreement that we would pay $ xxx of

Asked by 1948 Ford, 44224 Sat Jul 4, 2009

Buyers Costs which was originally for Conventional loan but buyers had to go with FHA Loan---Question is what all does Buyers Costs entail, we DID NOT sign to pay agents 3% commision b/c the buyers contacted us directly and brought agent into it later. We are being told that agents commision CANNOT be considered as part of the Buyers Costs on a FHA Loan and the amount is so high that closing costs will be much less which leaves lots of $ "on the table" that the buyers did not use---I cannot find specifics on this anywhere, can anyone help us? Closing is suppose to be Mon. but are going to put this off.

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If you are the seller, you can only be made to pay a comission if you had agreed to do so in writing. The assumption is that the buyer brought the agent and agreed to pay the commissioin. In that case, both of you could have agreed to raise the price over what you had agreed to enough to pay the agent. in essence, they are paying it by raising the loan amount and including it in their closing costs. If the agent does not have an agreement to be paid by either party, they they can't collect it.

You still may the the problem of why did the agent get involved in taking care of the paperwork in the first place. Someonw would have had to get her involved. Check the purchace contract very carefuly to see if there is a clause in there that obligates you to pay it. Under Utah Law, an agent cant put a comission agreement into the purchace contract. I have been a broker in California in the past, and I think it is the same there. INotherwords, if the agent doesn't have a written agreement with either of you outside the purchace contract they cant get paid.
0 votes Thank Flag Link Mon Jul 6, 2009
Thanks guys for your input---I guess I should tell you that we went to closing on Thurs. and the agent had added in $5000 on top of the agreed buyers costs we agreed to pay so she had to call the lender again (lender out of MI where the buyers are coming from) and ask for the paperwork to be redone and was told it had to go back to underwriting b/c they did not have the paperwork stating the $5000 was to be part of the agreed buyers costs. We were then advised that the agents commission cannot come out of those buyers cost since FHA loan?????? We met again at 5pm that night and still no documents from the lender ----we are now really confused and want 24hrs to look over the paperwork before closing on this deal. We have a great relationship with the buyers and neither of us signed to pay commission to the agent, now we are wondering why the dishonesty on trying to charge us twice for the commission----this is the reason we went FSBO b/c of greed and dishonesty.
0 votes Thank Flag Link Sat Jul 4, 2009
I think Mark is right. You agreed to pay closing costs and that could include a comission. Not only that, but with buyers being hard to come by right now, you should do everything you can to get this deal closed.

I had a cliant that negotiated a deal down to within $500. Neither party would give in over the last $500. It was not about dollars, bu simply about deciding who was going to win the negotiations.

Later the home sold for about $3000 less than the best offer they had previously had on the table. Be Careful about upsetting the negotiations.
0 votes Thank Flag Link Sat Jul 4, 2009
who told you the commission could not be part of the buyers costs? That is a cost to the buyer for having an agent... a choice I think is wise. Anyway, I guess the real question is why do you care? You agreed to pay x$ and that would result in a net $ amount to you and that would be the same if the commission is paid by the buyer (and you pay the cost) OR if you just pay the cost as a seller...

My point is get the deal closed and you net the same bottom line either way. I know of no reason it could not happen with the buyer side commission being paid by you however...

Best of luck and I hope that helps... let me know if you have follow up questions...

Mark Ryan
0 votes Thank Flag Link Sat Jul 4, 2009
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