Home Selling in Little Rock>Question Details

Monkberry, Home Seller in Little Rock, AR

is realtors commission affected by who pays closing costs?

Asked by Monkberry, Little Rock, AR Thu May 10, 2012

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6
simple answer is No. The Realtors commission is set by the signed Listing Agreement with the brokerage company. Closing costs are a separate paragraph to address in the Offer made by a buyer. A Seller generally just takes that into consideration based on what the offered amount is.
0 votes Thank Flag Link Fri May 11, 2012
It's not, unless it's different in AR.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes Thank Flag Link Fri May 11, 2012
It seems to in my area unless the agents set something different up during negotiations.

For instance, with a Sale price of $400,000 but $5,000 paid to the buyers for closing costs, commission is normally calculated on $395,000.

Again, this can be changed and negotiated, but that seems to be common practice as the seller is really netting $5,000 less in this example.
0 votes Thank Flag Link Fri May 11, 2012
In Arkansas, according to Arkansas law, the commission payable to the listing agent and the buyer's agent is established between the listing agent and the seller before the home ever hits the market. Any concession, whether it is closing costs, mortgage payments, yard service, etc does not effect the commission payable. Most of the time the commission is based solely on the final sales price, regardless of concessions. According to the Cooperative Arkansas Multiple Listing Service guidelines, the buyer's agent commission, if based on a %, must be based on the final sales price, unless communicated differently.
0 votes Thank Flag Link Fri May 11, 2012
Commission fees are negotiable.
The seller could request to pay commission for the amount of the offer less any closing costs that he has to pay.
0 votes Thank Flag Link Fri May 11, 2012
Hi Monkberry!
No, it's not. It doesn't matter who pays the closing costs, the realtor's commissions are set into place the day the contract for the listing gets signed. The realtor agrees to sell the home for the seller, and the commission is decided by the seller and the realtor, and agreed upon by the seller. But that is the amount that the realtors will receive, no matter who pays the closing costs. Hope that helps!
Chris :0)
0 votes Thank Flag Link Thu May 10, 2012
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