Kickbacks. Nearly every contract I see now has 1-6% (sometimes a hair more) of seller paying closing costs. It is so common that appraisers have started ignoring the deduction. If a house is valued at 100k with 3k of kickbacks. It is supposed to be cut to 97k for value. It now is just forgotten about up to 3-6%. Seem sellers cover portions with second mortgages to get a deal done. Those are some of the things I’ve noticed.
Seller paid costs aren’t kickbacks. It’s totally acceptable per almost any mortgage product you go with whether it be conventional or fha.
Whatever you want to call the kickbacks, it’s still the same. It is to be deducted off appraised value. Get 10k closing costs paid, it reduces the appraisal by 10k per standards. Except it has stopped happening because several houses wouldn’t make value.
The problem with doing a 3% on the back half, is he pockets the $2500, then there’s 3% left it’s supposed to get split between him and the buyers realtor. Most buyers realtors won’t even let their clients know that a house like that is even available to buy because they would be getting greatly reduced commissions. To simplify the buyers realtor would get less than 1 1/2% instead of less than 3% split two ways. so you’ll end up with fewer eyeballs on your property. In that scenario I would rather just sell it by owner or go to fsbo.com especially in such an easy seller market.
Huh? With 6% it’s split 3/3 so there is no difference for the buyer side. If your house is over 100k, you will save money since the first half is locked at 2500 and not 3%. The only person it cuts is the seller rep.
Are you saying the seller rep gets none of that 3%? If so that’s definitely not true.
If that’s true thats a good deal. Why would Charter take $2500 and pass on 5 figures. Not buying it. Doesn’t pass the smell test. Not even close.
Under what charter said in his post, they got 2500 to list. Maybe you know his guidelines better than him? I don’t really care anyhow.
