Quote:
Originally Posted by CoachKandSportsguy
I understand your point of view. It's a pure financial cost benefit analysis for the transaction. My opinion of executing that approach in the current market is where I see the potential issue. I hope to see how well it works in reality. I will go search #retwit to see if anyone has used this approach and how successful the execution has been.
I think with mortgages now slipping below 5%, there will be more closing activity and there will be more data available to evaluate the currently most successful approach to selling. how long that lasts will also be questionable, as the situation evolves.
If the buyer has an agreement in place, and the seller won't give any commission in the sale, then at closing, the mortgage company / title company will require that the downpayment / or cash required at closing will be the balance for the mortgage/purchase plus the BAC commission. The result will be that all purchases with no concession from seller, will require an additional 2-3% over listing price for buyer. Kind of like the credit card free of 2-4% on credit card transactions at the local restaurant. Sellers are forced into accepting the Buyers agreement / use of a credit card and the resulting cost increase for the transaction. Credit card fees have forced the sellers to list a higher price to account for the fee and still get the required minimum gross margin to stay in business. House inflationary results
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As a seller, no one is going to force me to accept a buyer's agreement. I would just reject the offer. I have bought and sold a lot of houses, but I have never paid a buyer's agent commission.