Everything is Negotiable!
I am back from vacation in San Diego. Unfortunately, we were there during the heat wave so instead of 40 degrees cooler we had to suffer through only a 30 degree temperature drop. And it was humid. But it is still a great place to complain about the heat!
On to business. Greg Swann writes in todays Republic that last week he established that a buyer pays for everything in a home purchase transaction. I think this is a matter of perspective and since I did not see last weeks article, I will maintain that stance.
A used car transaction: price is $10,000 and the buyer pays full price. All of the money in the transaction is the buyers which becomes the sellers the second the deal is executed. As part of the deal, the seller stipulated that 3% would be paid to a car dealer if they brought him a buyer, which in this case occurred. So the seller gets 10k the second the deal closes and at second number 2, pays a car dealer $300 for bringing in the buyer. To me that was the sellers money.
If the price had been written, $9,700.00 with no car dealer and $10,000.00 with a dealer then a better case could be made that it is the buyers money paying everything.
I certainly agree that the buyer is bringing all of the money to the transition, but at some point it becomes the sellers and then at some point the money is shared with the Realtors. The seller is bringing product to the table and this has to be acknowledged.
Splitting hairs- yes!!
One thing I do agree with is that everything in a deal is negotiable. If you are buying, request some of the commission be put back in your pocket at escrow. See what the commission split is and go from there. 1% is a good place to start. Work this deal with your Realtor. Just as sellers should interview agents, so should buyers.
Ask for the stars and hope for the moon.
On to business. Greg Swann writes in todays Republic that last week he established that a buyer pays for everything in a home purchase transaction. I think this is a matter of perspective and since I did not see last weeks article, I will maintain that stance.
A used car transaction: price is $10,000 and the buyer pays full price. All of the money in the transaction is the buyers which becomes the sellers the second the deal is executed. As part of the deal, the seller stipulated that 3% would be paid to a car dealer if they brought him a buyer, which in this case occurred. So the seller gets 10k the second the deal closes and at second number 2, pays a car dealer $300 for bringing in the buyer. To me that was the sellers money.
If the price had been written, $9,700.00 with no car dealer and $10,000.00 with a dealer then a better case could be made that it is the buyers money paying everything.
I certainly agree that the buyer is bringing all of the money to the transition, but at some point it becomes the sellers and then at some point the money is shared with the Realtors. The seller is bringing product to the table and this has to be acknowledged.
Splitting hairs- yes!!
One thing I do agree with is that everything in a deal is negotiable. If you are buying, request some of the commission be put back in your pocket at escrow. See what the commission split is and go from there. 1% is a good place to start. Work this deal with your Realtor. Just as sellers should interview agents, so should buyers.
Ask for the stars and hope for the moon.
posted by Terry at 8:08 AM
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