Seller concessions questions

[CA123]

Concessions are now broken down into many categories.

example:

CONCESS FINANCING COSTS $:

CONCESS PROP IMPROV COSTS $:

CONCESS BUYER BROKER FEE $:

CONCESS CLOSING COSTS $:

CONCESS OTHER COSTS $:

CONCESS AMOUNT (TOTAL) $:

CONCESSION CMTS:

how are you treating seller concessions in the grid? It used to be simple and used to be listed as "$5,000 for closing costs" now the concessions can be $30,000 to $200,000+ because part of the concessions are now for buyer/broker fee

are you doing anything new after the NAR settlement? I have not seen or heard any direction and would like to see what people are doing today

 

[ZZGAMAZZ]

Concessions are now broken down into many categories.

example:

CONCESS FINANCING COSTS $:

CONCESS PROP IMPROV COSTS $:

CONCESS BUYER BROKER FEE $:

CONCESS CLOSING COSTS $:

CONCESS OTHER COSTS $:

CONCESS AMOUNT (TOTAL) $:

CONCESSION CMTS:

how are you treating seller concessions in the grid? It used to be simple and used to be listed as "$5,000 for closing costs" now the concessions can be $30,000 to $200,000+ because part of the concessions are now for buyer/broker fee

are you doing anything new after the NAR settlement? I have not seen or heard any direction and would like to see what people are doing today

I don't agree with your statement. Sales concessions are a different animal then sales commissions. I attended a CA seminar recently about the NAR settlement; and I found the prohibition about publicly describing Selling [buyers] Agent commissions in the MLS listing.....although a CRMLS FAQ indicates that the dialogue between Listing Agent and Selling Agent about commissions is totally open to discussion, long as it isn't published in the MLS listing--what a crock of f'g bureaucrated BS in my opinion. [BTW, because this is a FHA thread, the AF previously noted that seller concessions for FHA loans can pertain exclusively to closing costs, although I don't know who said that, or when...]

 

[Sandra Koutsopoulos]

Since selling agent commissions are STILL typically paid as concessions by seller, I don't typically adjust on the grid for that. I do adjust for closing costs and repairs. There was something from around 2012 from AQB or someplace that said if adjustments are typical in the marketplace, one shouldn't adjust for that, and that's kinda how I look at the broker fee. On the other hand, I don't give a +$ if there is no seller concessions, so that feels inequitable to me as well.

IMHO this new bull about non-disclosure of co-broke commission is mostly smoke and mirrors, is an attempt to not say what is obvious to everybody and needs to be said and negotiated albeit in the dark nowadays, and it creates another hurdle for the Buyers and their agents before Buyers actually discover how (in)competent their agents are. Having Buyers sign with agents before being able to actually determine their capabilities is a great disservice to the public IMO. And those negotiations need to be undertaken before showing Buyers houses. On the GOOD side, perhaps more agents will find buyers to be somewhat more 'loyal' if they are confronted about agent commissions before wasting an agent's time chasing all over creation with them, and then buying from their non-active-agent-brother-in-law. But it really feels like two steps back and one step forward on a slippery murky trail in the dark. And of course every one of the contracts I've seen says Buyers don't have the $$$$ to pay the commission they have contracted to pay to their selling agent, and so condition their offers for Seller to pay anyhow.

 

[Tom D]

Haven't seen enough to know if the buyer paying their agent, do they get a better sale price. Not seeing sale price to listing price being lower on agreements of sale., but maybe not going higher either.
This is a big big mess to deal with if you have to hunt down that info. Hey agent, can you tell me if the buyer paid their own agent and did it affect the sale you had 6 months ago. I think most realtors are not concerned about remembering that info on hand. Most 1st time home buyer's don't have that kind of savings amount for down money, settlement money and buyer agent money.

What a mess to deal with. And on fannie avm how does it know about who paid buyer agent. Talk about the margin of error increasing.

 

[J Grant]

Haven't seen enough to know if the buyer paying their agent, do they get a better sale price. Not seeing sale price to listing price being lower on agreements of sale., but maybe not going higher either.
This is a big big mess to deal with if you have to hunt down that info. Hey agent, can you tell me if the buyer paid their own agent and did it affect the sale you had 6 months ago. I think most realtors are not concerned about remembering that info on hand. Most 1st time home buyer's don't have that kind of savings amount for down money, settlement money and buyer agent money.

What a mess to deal with. And on fannie avm how does it know about who paid buyer agent. Talk about the margin of error increasing.

I am seeing it spelled out in the sale contract - and as expected, the seller is paying the buyer agent commission. It is not really a buyer agent, it is all BS to avoid litigation.

Of course, NAR circled the wagons and Fannie and Freddie jumped in to help- wrt not saying it is a concession - they protect the $thousands in agent commissions while being eager to skim and deny the appraisers measly fee in the hundreds of dollars -the consumer saves so much by using a Waiver ! ( but in a Waiver, the consumer still foots $ tens of thousands in agent and lender fees- those fee are rolled into the mortgage vs the cash up front for the appraisal fee so the appraisal fee is the one they go after - )