One of the new realities of the current real estate market is that buyers often ask for concessions, monetary and otherwise, from sellers. It used to be that they asked for things to be included or fixed, based on the inspection. Now, they also may ask for the seller to pay some or all of the closing costs. This is often so that the purchase price is higher, and allows them to qualify for a higher mortgage amount.
We have seen some issues at the closing with these requests. The sellers don't always seem to realize that the purchase price will be the basis for the conveyance tax, the land records, and the commission. It's the amount at the top of the sales contract that governs all those amounts. We, for instance, have other brokers to pay in almost all cases. Sometimes it's a referral, sometimes a co-broke, either inside or outside the company. The commission offered is on the full amount, and we are responsible for it, whether or not the seller made concessions. While I understand why sellers wouldn't always like that, I don't see the difference between a concession made in cash or at closing from a concession made during inspections or even during negotiations. It happens, and it isn't our fault. And we shouldn't have to take the co-broke commission difference out of our pocket.
There are a lot of ways to get upset during the length of a sales transaction. But, please, don't shoot the messenger. We're trying to help.
