goedeg, Home Seller in Philadelphia, PA

Regarding sellers assist and commission, is commission calculated on the higher purchase price or on the net amount after the seller assist credited?

Asked by goedeg, Philadelphia, PA Thu Aug 15, 2013

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Renee Georgi, Agent, Wexford, PA
Thu Feb 18, 2016
Commission is calculated on the purchase price of the home UNLESS the Listing Agent makes it very clear that Commission is to be calculated on the NET amount. If an Agent forgets to stipulate this and later asks the Buyer's Agent to honor this, it is up to the Buyer's Agent to make that decision. My personal opinion is that if you as a Listing Agent FORGET to put something in writing, then YOU personally should eat the difference, NOT your Seller.
0 votes
Stuart Udis, , Philadelphia, PA
Tue Aug 11, 2015
Commission fees are negotiable and should be clearly outlined in the listing agreement. Under the PA standard listing agreement, the commission is paid on the sale price. While in most cases, Realtors will cooperate if you request that the commission be paid on the net sale proceeds after deducting the seller concessions, it is always best practice to clearly outline this in the listing agreement prior to the property going to market. The following language should be incorporated into the listing agreement in the future for further protection:

"Commissions shall only be paid on the Net Sale Price defined as sale price less the seller assist awarded to the buyer."
0 votes
Sheri Curci, Agent, Newtown, PA
Sun Aug 18, 2013
You should pay on the full sales price of the home. That being said, when I represent the seller, I will tell agents up front that the seller is paying commission on the net minus the seller assist. The other agent is always very cooperative. On the flip side, it has been asked of me several times over the years, and it is never a problem.
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Larry Lichtm…, Agent, Bala Cynwyd, PA
Thu Aug 15, 2013

Technically, according to the standard listing agreement, commission is charged as a % of the sales price. However, it is common practice among most Realtors in Philadelphia, to not charge that % commission on the Seller's Assist Amount, since that amount of Seller's Assistance is not actually proceeds due to the Seller.

Hope that helps.

Please feel free to call me directly with any other real estate related questions.Have a great day. Looking forward to speaking with you soon.

All the best,
Larry Lichtman, CNE
Realtor, Property Manager
Your Real Estate Resource For Life
CELL/Text: (267) 254-7994

Liberty Real Estate Associates
924 Arch Street
Philadelphia, PA 19107
Office: (215) 625-4725
0 votes
Christopher…, Agent, Collegeville, PA
Thu Aug 15, 2013
Generally commission is based on the sale price of the home. However, this industry is completely negotiable and it is possible for a seller to arrange to pay commission on the net sale price. This would need to be agreed to in writing prior to an offer be accepted.

Chris Nelson
National REO Broker Association (NRBA) Member
REOBroker.com Member
Certified Distressed Property Expert (CDPE)
Platinum Equator & RES.NET Certified
794 Penllyn Pike, Ste. 120
Blue Bell, Pa 19422
215.641.2500 Main
215.641.2542 Fax
484.576.7430 Cell*
0 votes
Don Sherman, Agent, Philadelphia, PA
Thu Aug 15, 2013
Good morning;
Usually the commission is calculated on the full sale price but sometimes commission is paid on the net after assist is deducted.
Don Sherman
Century21 Advantage Gold
0 votes
Joseph Roraff, Agent, Onalaska, WI
Thu Aug 15, 2013
Off of the purchase price.
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