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At My Home My Sale, we understand the complexities of real estate transactions, and sometimes situations arise that can be confusing. A recent Reddit post sparked a discussion about "seller assist" with a unique twist – the buyer's agent offering to deduct the seller assist amount from their own commission. Let's delve into this scenario and answer some key questions.
The Scenario:
You're selling your home and receive an offer with a request for $4,000 in seller assist to help cover closing costs.
The twist? The buyer's agent clarifies that the seller won't be responsible for this amount; it will be deducted from their commission.
Is This Common Practice?
While not as common as traditional seller concessions, buyer agents offering to reduce their commission to contribute towards seller assist is a possibility.
However, it's important to understand the implications:
Impact on Buyer Representation: A reduced commission might incentivize the buyer's agent to prioritize a quicker sale over a deal that maximizes the buyer's interests. Open communication and a clear understanding of expectations are crucial.
Transparency is Key: Both the buyer and seller should be aware of this arrangement and agree to it in writing.
Handling it on the HUD-1 Settlement Statement:
The HUD-1 settlement statement, also known as a Closing Disclosure, is a detailed breakdown of all closing costs associated with the real estate transaction.
In this scenario:
Seller Concession Line: The $4,000 seller assist would typically be reflected here as a credit to the buyer.
Buyer Broker Commission Line: The buyer's agent's commission would be listed with the deduction of the $4,000 seller assist contribution.
Will the Lender Approve?
Generally, lenders don't have objections to seller assist as long as it's documented and legitimate. However, they might require additional documentation depending on their specific guidelines.
What Should the Addendum Say?
The addendum to the contract should clearly state the following:
The seller agrees to provide a seller assist of $4,000 towards the buyer's closing costs.
The buyer's agent agrees to deduct this amount from their commission.
Both parties acknowledge and agree to this arrangement.
The Final Word:
While this approach to seller assist is less common, it's not unheard of. The key is to ensure clear communication and have all agreements documented in writing. As a seller, it's crucial to weigh the benefits of the reduced closing costs against the potential impact on the buyer's representation.
At My Home My Sale, we can connect you with experienced real estate professionals who can guide you through the complexities of the selling process. We can help you navigate seller assist options, ensure transparency in all transactions, and achieve a successful sale.
Agent Feedback Wanted!
We value the insights of experienced real estate agents. Have you encountered situations like this "seller assist with commission deduction"? Share your feedback and any additional considerations for our readers in the comments below!
*Disclaimer: This article is intended for informational purposes only and should not be construed as legal or financial advice. For specific guidance on your situation, consult with a qualified real estate professional and/or attorney.
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