Do I have to pay my agent more after adding seller concession?

Question

I'm in the process of selling my home which was on the market for 149k. We negotiated a contract with a selling price of 144,500 with a 5k seller concession. My agent is saying that I have to pay the 6% commison on the 151,500 now, I've heard that I pay on the 144,500. Which is true?

Answer 1

If you've signed a contract, the commission is based on the sales price in the agreement.

It generally depends on what you insist on before you sign the contract. If you look at the contract price of 144,500, and tell your realtor "I'm saying no if the commission is based on 144.5 with a 5k credit. You're going to have to waive the commission for the 5k I'm giving away", they'll say "oh, yes, of course, we ALWAYS do that" but if you wait till after you sign, it's too late.

Get the waiver in writing before you sign.

Answer 2

Typically what I have seen is the commission is based on the initial sales price and not the higher price w/ seller concessions. I do agree with the PP that if you ask the agent before hand then they would most certainly say the lower price, but if you ask after the fact then they'll probably tell you it's based on the higher amount.