who pays broker fees?what fees am i to expect to pay

tblacksnake3 · Joined: 07 Nov 2007 Posts: 1 1.46 Dollars($)

i am selling my house to a next door neigbor and she hired a broker ,me(without a broker),but the broker is saying i have to pay attorneys fees and broker fees along with other fees.the house has a zero balance

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi,

Generally, buyer pays attorney fees and broker fees. So I think it will be your neighbor who should pay it.

Thanks,
Larry

jenkin7 · Joined: 04 Jun 2007 Posts: 939 140.80 Dollars($)

Hello,

Is he a real estate broker?

In certain cases the seller is also responsible for the closing costs like attorney fees and broker fees.

Guest 0.10 Dollars($)

what fees should i be expected to pay selling on my own behalf,the house is a simple as is sale

Guest 0.10 Dollars($)

Hi,

Is your neighbor taking a mortgage?

Sometimes the lender requires the seller to pay certain fees at closing and for setting up the escrow account.

kpatrick · Posted: Fri Nov 09, 2007 7:01 am Post subject:

Hi Michel,

The bottom line is, what does the contract state? Is there a contract? On this it should state the agreed upon sales price, and the amount of closing costs that you agree to pay. Generally it is anywhere betwen 1-3%. I say generally, b/c it is a buyers market, and sellers, for the most part have to agree to give more than they would have , say 12 months ago.

Now, another thing that is a factor, is the sales price that you are selling it for. If you are selling for list price, then it wouldn't be out of the ordinary for you to agree closing cost...but seeing as this is a neighbor, if you agreed to sell it below value, then it wouldn't be unusual for you not to agree to pay closing costs...but then again, in the interest of getting it sold, you could agree to add the amount on top of the sales price.

For example, if the home is worth $125k, but you have agreed to sell for $100k , then you should not expect to pay closin g costs. But if the buyer needs the help, you could agree to increase the sales price to $103k, or if it is a program that allows 6% seller contributions, $106k, and then you could contribute the diff in the form of seller paid closing costs and your net would be the same.

Hope this helps.
Kim

kpatrick · Posted: Fri Nov 09, 2007 7:02 am Post subject:

Oops, I meant to address that last post to tblacksnake3...

livinginnky · Posted: Fri Nov 09, 2007 2:47 pm Post subject:

You don't have to do anything.

The fun part of real estate is that EVERYTHING IS NEGOTIABLE

What it comes down is what you want to accomplish from the sale. Figure out how much you want to "net" and everything else is semantics. The broker should know that.

Lets do an easy example. Say where you are you have to pay certain fees, which you may. Ok. Now say you want $1000 for you house (example obviously). Now say your part of the fees is $10. The buyer should offer you $1010. Get it? Now maybe you don't care about the $10, then the closing agent will just take it out of your proceeds.

Let me know if this helps or you have any questions.

helping_user

Hi Kpatrick,

I agree with you. The contract matters. Also, there can be little bit of negotiations to make the deal better. and, it's quite justified if a seller has to pay closing costs worth 3% and he sells for 103K - in a way he gets back what he pays to the buyer.

Thanks.

Guest 0.10 Dollars($)

Hi Kpatrick,

Your post has made it easier to understand. But I think that the seller will generally not agree to pay the closing costs if he is already suffering a loss in the process.

Is the broker fees also included in the closing costs?

kpatrick · Posted: Sat Nov 10, 2007 7:13 am Post subject:

You're right on it, Michel...like I said..."For example, if the home is worth $125k, but you have agreed to sell for $100k , then you should not expect to pay closin g costs."

Like livininky said, It's all about the negotiation!

And yes, broker fees are part of the closing costs. Very Happy

Guest 0.10 Dollars($)

Thanks Kpatrick for clarifying me.

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