I am looking to do an owner occupy of a multi family unit, and I am thinking of asking the seller for 3% as seller credit instead of using a buyers agent. from my perspective, the seller wouldn’t really care, because I am not lowering the purchase price of the house. Instead, they are getting the purchase price they want, and paying at 6%. I don’t see why the sellers agent would care either, since they are getting their standard 3%.
from my perspective, the seller credit could be used to offset any closing costs I may have, and even cover some points to buy down my interest rate. Alternatively, I could use that money to make some basic renovations.
3% in cash upfront is pretty significant, so I’m wondering if this is a good idea. If anyone could comment, that would be great! Would love to hear if I am making a mistake!
Contractor · Nashville, TN · Member since 2014 · 1k+ posts · 1k+ votes
4y
Seller and their agent would need to change LA commission to 3% instead of 6,but the point here being yes you can absolutely use this to negotiate a better deal for everyone.
I am looking to do an owner occupy of a multi family unit, and I am thinking of asking the seller for 3% as seller credit instead of using a buyers agent. from my perspective, the seller wouldn’t really care, because I am not lowering the purchase price of the house. Instead, they are getting the purchase price they want, and paying at 6%. I don’t see why the sellers agent would care either, since they are getting their standard 3%.
from my perspective, the seller credit could be used to offset any closing costs I may have, and even cover some points to buy down my interest rate. Alternatively, I could use that money to make some basic renovations.
3% in cash upfront is pretty significant, so I’m wondering if this is a good idea. If anyone could comment, that would be great! Would love to hear if I am making a mistake!
You can make any negotiation that makes sense for you and the seller. However, if you are using financing you have to get clearance from your lender since it is their gold and they make the rules. There are also governmental rules that have to be followed if you use VA, FHA, USDA, FannieMae or Freddie Mac. If you are paying cash, any agreement works.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
4y
Not likely to happen, the owner already has a listing agreement paying the listing agent 6%...the agent would have to agree, not the owner, and they still have guid you through it and deal with you in addition to their seller.