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Buying & Selling Real Estate

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Bei He
  • Rental Property Investor
  • San Jose, CA
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When purchase a property, isn't buyer pay agent fees better?

Bei He
  • Rental Property Investor
  • San Jose, CA
Posted Sep 16 2018, 20:27

I consider myself an "little" investor mainly do buy and hold rental properties. So far, I bought 3 properties including my primary residence.

However I noticed that usually seller pays for 6% buyer and seller agent fees. Why don't people negotiate? 

My thoughts are, assuming a property selling at $300k:

Option 1: Contact price $300k, seller pay 6% agent fee. Seller get $282k, buyer pay $300k.

Option 2: Contact price $282k, the term change to buyer cover agent fee. Seller pay 0% agent fee. Seller get $282k, buyer pay $282k + agent fee $16,920, total $298,920. 

So option 2 seller get the same amount into pocket and buyer pay a little bit less. To me, if I'm a long term buy and hold, every year I can pay a little bit less on property tax right? 

Am I think right? Sounds to me this is a no brainer. 

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