Sales Concessions

[Jozsef Poor]

The commission should be based on the sales price of the purchase agreement. What a slippery slope doing other wise would be.

Some appraisers have stated the value of the property should be based on the NET to the seller. What a night mare that would be..?

You are 100% right.
How about when the seller takes a note in form of a first or second mortgage, and a year later he sells it to the buyer for 80 cent on a dollar?

There where a sale where the city was assessing the property for X amount, the seller gave a concession for the buyer to compensate for the assessment he did not payed yet.
There are many combination and the appraiser need to be careful when making a decision.

 

[Richard Carlsen]

Up to the point where the seller signs his agreement to the purchase contract, commissions are negotiable. If it is listed for $500,000 and a contract is written for $500,000, the agent is owed the full commission.

Mike, do you have or have you had a brokers license or ever listed a house?

In my 18+ years of selling real estate, the listing we used said clearly that I earned a commission if 1) I brought a buyer who was ready, willing and able to pay the listed price or 2) to any other price, terms and/or conditions that the seller might agree to in a proffered PA.

Just bringing a full price offer does not earn a commission. The buyer has to be ready, willing and able to consummate the transaction. In the case of any other offers that the seller may agree to, the same commission normally applies.

How about when the seller takes a note in form of a first or second mortgage, and a year later he sells it to the buyer for 80 cent on a dollar?

Where is financing or subsequent discounting of notes addressed in the definition of Market Value?

Why would we worry about someone discounting a note in the future or painting the living room purple?