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is this a good deal


wesleep
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im selling my house by owner and im selling for $175,000. My payoff is $158,000. A buyer came to me with a realotor and realotor ask for us to pay up to $5000 closing cost and also pay her 3% commision. I will end up getting around 164,800 and when i pay off my house i will get around 6000. Is this a good deal or did i get ripped off. why is the closing cost going to be 5000. Is the realotor going to fix the numbers to come out to 5000 since we are paying them. She said up to $5000. And also my principal balance is 156,791 so why is my pay off more. Will i get my escrow back at closing. I tryied to save money by not selling my house through a realotor.

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im selling my house by owner and im selling for $175,000. My payoff is $158,000. A buyer came to me with a realotor and realotor ask for us to pay up to $5000 closing cost and also pay her 3% commision. I will end up getting around 164,800 and when i pay off my house i will get around 6000. Is this a good deal or did i get ripped off. why is the closing cost going to be 5000. Is the realotor going to fix the numbers to come out to 5000 since we are paying them. She said up to $5000. And also my principal balance is 156,791 so why is my pay off more. Will i get my escrow back at closing. I tryied to save money by not selling my house through a realotor.

Seems there's some room for negotiation here.

I'd counter with paying 2% realtor commission. That'd save you at least $1750.

Or perhaps raise the price to $178,000 (assuming it'll appraise for that amount).

How long has your house been on the market? How much of a hurry are you in to sell quickly?

You'll have a tougher time if you decide not to work with agents. You'll really limit your customer base if you don't pay any commission.

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only being on the market for about 1 week. We told her 2% but she said she could not go that low and they were going to look elsewhere. We wanted to sell during summer while school was out. Since were not working with a realotor company were taking the first good deal that comes along. Can she make the closing cost be 5000 or will it be less and will i get money back thats in my escrow account. Why is payoff balance different from my current prinicpal balance

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only being on the market for about 1 week. We told her 2% but she said she could not go that low and they were going to look elsewhere. We wanted to sell during summer while school was out. Since were not working with a realotor company were taking the first good deal that comes along. Can she make the closing cost be 5000 or will it be less and will i get money back thats in my escrow account. Why is payoff balance different from my current prinicpal balance

Chances are the buyer doesn't have a contract with the agent. Most likely not in the sense that a seller would have with an agent.

Before we settled on new construction and a 2% cash back agent, I went out with a buyer's agent once. I was younger and ignorant about house buying, and I remember the agent being very leery about any for sale by owners. The reason apparantly was because she was worried about not getting a commission if I bought that house.

So rather than take me to one of those houses, she'd skip right past them.

That's certainly her right to do so, and if I were a real estate agent, I wouldn't take my clients to any home that couldn't offer me my commission.

However - in this situation, the agent already took the potential buyer to your house and the buyer was obviously interested in your house.

The buyer, however, is letting the agent do all negotiations on their part. Generally, the agent will be a better negotiator and this does make sense. However, in this case the agent is willing to let a decent house go by without consulting with the buyer (just a guess). I couldn't imagine the agent telling the buyer - "sorry, wesleep is not willing to negotiate. You can't get this house because my commission would not be high enough".

If you could talk to the potential buyer directly instead of going through the agent, you could possibly make a better offer directly to the buyer -

Offering the house at 172 +5K closing would be a better deal for you and the buyer, but would completely stiff the agent.

It makes perfect sense for an agent to not take clients to a 'for sale by owner' because of situations like this, but if the agent already took the client to the house, then things get a little murky.

One other thing to consider regarding the commission - it's quite possible the agent only gets 1.5% commission and has to turn in 1.5% to their company. If you only give 2% commission, the agent may have to forfiet 67% of their commission on this sale.

I would say your choices are

a) raise the price, hoping the house will appraise for the increased price, and hoping the buyer will go for it.

B) contact the buyer directly and try to negotiate with the buyer - stiffing the agent

c) take the deal as presented.

--------------------------------

The agent has no say in the closing costs. That's between the buyer and the buyer's lender. $5K may not be totally unreasonable. If it's over 5K, buyer would pay the difference. If it's under 5K, you'd pay actual closing costs. 5K was chosen as "the number" because 5K is really close to 3% ($5250) and most loan programs allow for the seller to contribute a max of 3% of closing costs.

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