Seller paying buyers' agent commission, how does Fannie Mae want to handle this?

[Sadie]

Part of the subject's transaction? Report it and move on. Part of the transaction for a comparable? Fannie wants you to assess the market reaction.

Fannie Mae and Freddie Mac have clarified that real estate agent commissions are not considered part of Interested Party Contributions (IPCs). This means the buyer's agent commission, typically paid by the seller, will not be counted against the limits on seller concessions. While there are limits on how much a seller can contribute to closing costs, these limits do not include the buyer's agent commission.

"Selling Guide B3-4.1-02, Interested Party Contributions (IPCs) permits interested parties (including property sellers) to make contributions to the borrower’s closing costs subject to maximum limits ranging between 2% and 9% of the property value. Typical fees and/or closing costs paid by a seller in accordance with local custom, known as common and customary fees or costs, are not subject to the IPC limits described in Selling Guide B3-4.1-03, Types of Interested Party Contributions (IPCs). If a seller or seller’s real estate agent continues to pay the buyer’s real estate agent commission in accordance with local common and customary practices, these amounts are not required to be counted towards the IPC limits for the transaction."