Doe realtors ever pay repair or other costs to close a deal?

Question

My house is close to settlement. The appraisal came through 2K short of the buyer mortage but 3K above the actual sale price. It was planned that I would return 5K to the buyers. Now I STRONGLY believe it to be fair to only return 3K to the buyer since the house appraised for more than the actual sale price. The buyers demanded that I split the difference and provide 4K to them. Since I lose 1K from the orginal deal I agreed only to do repairs that were required by the town I live in, leaving out some repairs that were requested from the home inspector. All repairs are minor including some minor electrical, roof(actually a shingle), gutter, and AC repair. The total would most likely be below 1K.

If the buyers do not agree to me not making all the repairs is it ok to then presure my agent who stands to me 4% off the deal to take care of some repairs.
Or simply put do realtors ever provide money or repairs to close deals?

Sleek my realtor is receving 4%(great deal for him) and the buyers agent(Foxtons) 2%.

Answer 1

If they are not approved, you can totally reject the deal. It gives you a little negotiation room with the agent. I have told an agent I was not going to do things (like clean carpets) and the agent actually picked up the tab. Most agents have sources for things like this and will help. My suggestion is this. If your buyer is 2K short on the loan, hold them to their original offer and hold the note for the 2K. If they default, you can foreclose on the home and get it back! It is only 2K, but since it varies from the original offer, the ball is in your court. If you stand firm with the agent and buyers, be prepared to lose the deal though. If you need to sell quickly, I wouldn't push the buyers too hard, but push the crap out of the agent. The worse they can tell you is no!

Answer 2

By law we are not allowed to do any such thing. You are obligated to do what you said you would do in the original contract. One thing you COULD do is consider another appraisal, although a new appraiser would cost you and would also take into account the previous appraisal. It is GREAT that your house appraised for more of the actual salesprice and THAT IS ALL! The buyers may have to pay more taxes than you ever did and in that way, things sort of come out equal in the end.

Again, it is unethical for the agent to contribute money toward the terms of the contract. She may agree to limit her or he may limit his commission, but realize that all of that 4% is not his or hers...it goes to the company as well, and he or she did his job as agreed in the listing agreement and this is to bring you a ready, willing and able buyer for your home.

Sounds like you should cut your loses, looks like a good deal to me. Congratulations!!! that your house SOLD in this awful market. Count your blessings and perform as agreed to. You'll feel good about it. I promise.

Answer 3

If the real estate agent wants his 4% than tell him he better use some of his commission to close this or when the contract expires you will cancel the deal with him than go after the buyer again on FSBO deal. Sucks but can happen.

Answer 4

An Agent CANNOT contribute any money toward repairs etc. They can and probably will lose their license. They can however drop their comission which at 4% compared to the 7% we get in my state is a bargain

Answer 5

wow this is really involved. I suggest you contact a real estate lawyer for his/her opinion in case you run into problems.

I would think it not proper for a realtor to repair something and pay for it themself. Plus they really aren't making that great money anyway...as it takes selling many homes and repeat business for realtors to make great money.

These days, and on newer homes, and because of the economy, and in my area (which might not be what the rest of the country is doing) they are offering boats, vacations, cars, etc. as incentives for buyers to buy the more expensive homes.