Dsjhall, Other/Just Looking in Chicago, IL

I've heard people say "I'll do the work for a point or two when the house sells and you pay me at closing. How do i find the amt. of

Asked by Dsjhall, Chicago, IL Wed Jun 29, 2011

the point?

Help the community by answering this question:


Good Evening Sir,
as noted earlier a point is equal to 1% of the purchase / sale price of the property.
so if someone commits to doing something for 2 points and the sale price is $200,000; they are indicating you pay them $4,000 for what they've done.

No matter what you do or do not proceed with, do not accept an offer any where like this without getting it in writing. Otherwise, you could end up in legal spat, lien issues, etc.

Good luck,

Michael Hobbs
PahRoo Appraisal & Consultancy
Web Reference: http://www.pahroo.com
1 vote Thank Flag Link Thu Jun 30, 2011
I haven't heard your quote, but a Point, generally refers to 1% of the selling price or loan amount. Don't accept vague amounts or terms you are not clear on. Whether buying, selling or doing a loan get all terms spelled out in writing and make sure you fully understand what each of the terms mean.
There are real estate glossaries online where you can look up several terms you may not be familiar with.
1 vote Thank Flag Link Wed Jun 29, 2011
What are you going to get for you point or so.
0 votes Thank Flag Link Wed Jun 29, 2011
It means a %, and Im not sure of the context this would be used in. I havent heard it before..
Web Reference: http://AmericorpRe.com
0 votes Thank Flag Link Wed Jun 29, 2011
as others have said... a point is generally 1% of the price. So a point or two means 1-2% of the purchase price.

But I would nail him down, 'cause there's a world of difference between one percent and two percent!!
0 votes Thank Flag Link Wed Jun 29, 2011
Alan May, Real Estate Pro in Evanston, IL
Hi there, Dsjhall.

Like my colleagues, I am not certain about the context/meaning of what you are writing about here.
That being said, yes, "a point" generally means an amount equal to 1%.

Feel free to contact us if you would like to discuss further and in more detail.

Good luck to you!
Web Reference: http://www.dreamtown.com
0 votes Thank Flag Link Wed Jun 29, 2011
1 point is 1 % of the mortgage amount.. i would be interested in what your talking about..never heard that phrase
Web Reference: http://www.joeschiller.net
0 votes Thank Flag Link Wed Jun 29, 2011
Be very clear about the numbers and if you are selling remember that there will probably be 2 agents. One representing the seller and one the buyer. People may say they will list for 1 or 2% but there is also a buyer's commission usually between 2 - 3%. Ask for the total a marketing plan and compare with a few other Realtors. Remember not all money saved is actually a good thing and may end up costing you more if mistakes are made.

0 votes Thank Flag Link Wed Jun 29, 2011
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