Seller concessions

[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

 

[Terrel L. Shields]

flying blind - damifino.

 

[J Grant]

This has already been covered on the board - see if you can find a recent past thread

A seller paying RE broker fee is not considered a concession (if paying RE broker agent fees are typical) - see fannie mae on it and lender articles where the lender does not consider a RE broker or agent fee as part of the cap on concessions - if the amount is exorbitant or looks like it affected a price then we might look at it as a concession-

 

[robertwells]

This has already been covered on the board - see if you can find a recent past thread

A seller paying RE broker fee is not considered a concession (if paying RE broker agent fees are typical) - see fannie mae on it and lender articles where the lender does not consider a RE broker or agent fee as part of the cap on concessions - if the amount is exorbitant or looks like it affected a price then we might look at it as a concession-

I dont have one in front of me, but I think one of the new docs regarding seller paying buyer's obligation to their agent is specifically referred to as a "Concession" on the pre-printed form(?)

 

[J Grant]

I dont have one in front of me, but I think one of the new docs regarding seller paying buyer's obligation to their agent is specifically referred to as a "Concession" on the pre-printed form(?)

I was referring to the Famnie MAe statement about it some months back as well as lender articles - type it into an internet search

An individual contract or document can say many things- their calling it a concession does not necessarily mean it is, double check the verbiage again

 

[CA123]

I dont have one in front of me, but I think one of the new docs regarding seller paying buyer's obligation to their agent is specifically referred to as a "Concession" on the pre-printed form(?)

i am new here, can you point me in the right direction? thank you.

i searched "seller concessions" but didnt find any pertinent info

thank you again

 

[Terrel L. Shields]

I'd say that the selling and buyer commissions are regarded as normal and typical and closing costs are normally split between the buyer and seller (here that is true at least) and all others I would adjust dollar for dollar on comps (50% on closing costs). Makes no difference on the subject.

 

[robertwells]

i am new here, can you point me in the right direction? thank you.

i searched "seller concessions" but didnt find any pertinent info

thank you again

Sure...It's just been provided a few times to me since the NAR settlement, and I dont know how to upload a photo here, but the title of the document is "Seller Payment (Concession) for Buyer's Broker's Compensation", and it looks like the document is referred to at the bottom as "SPBB Revised 7/24" and (SPBB Page 1 of 1)