6% Concessions and 4% Commissions.

It's been a while since I flipped homes, but I would see a lot of seller-assist concessions similar to what was proposed in your transaction. They were generally used as a tool to reduce the cash required to close. I was shocked when I reviewed the buyer financial disclosures that accompanied the offers, although the offers were also accompanied by legitimate preapprovals. I couldn't believe how some of these buyers actually qualified, as they literally didn't have enough money to purchase dinner after settlement. But the loan originators didn't care. They knew what was required to approve the buyers for the loans, and those loans were often sold to a servicer by the time the ink dried on the deed. I saw this most often with FHA-type transactions, where the buyers were strapped for cash and were coached up on how to structure the transaction to qualify for a mortgage.

I also learned that buyers at this price point were very sensitive to property condition, and home inspection reports could lead to repair addendums that read like novels. Luckily, my properties were renovated by solid subcontractors, with permits, and generally produced relatively clean inspection reports. However, I encountered many buyers who had terminated prior transactions because of inspection issues and an impasse with the property owner over which repairs would be made.

This is why I've been so vocal on the message boards, particularly with the BRRRR SFH buyers who believe they are sitting on a ton of equity buying homes in markets that would attract this type of buyer should they sell because the transactional costs can easily total 15%+ between broker fees, seller concessions and repair addendum requirements and its rarely accounted for in underwriting.