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Paying cash out of pocket for buyers broker?

Started by JulianC
about 13 years ago
Posts: 4
Member since: Feb 2013
Discussion about
I mean, if the place were listed at $1MM and the seller had to pay $30000 to his broker and thats it, under what circumstances would you hire your own buyers broker for $30000 cash out of your own pocket?
Response by greensdale
about 13 years ago
Posts: 3804
Member since: Sep 2012

Actual scenario or an efficient markets question?

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Response by ieb
about 13 years ago
Posts: 355
Member since: Apr 2009

You're on the right track and of course anything can be negoiated. The typical sellers agreement with their broker is a 6% commission that's to be sharred with the buyer's broker and a 4% rate if there is no buyer's broker. So, on face value you have at least 2 of the 3% that you're looking for.

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Response by ab_11218
about 13 years ago
Posts: 2017
Member since: May 2009

you are trying to avoid the mansion tax. clearly understood. bring a suitcase with you to the closing for the re agent to take home and you save yourself $10K on the spot.

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Response by JulianC
about 13 years ago
Posts: 4
Member since: Feb 2013

Oh, no. This is not about the Mansion Tax. Just a question on saving money for the buyer broker, as I wonder how many people might consider saving 2 or 3% if things were set up different in the industry.

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Response by Ottawanyc
about 13 years ago
Posts: 842
Member since: Aug 2011

Couldn't a lot of sellers around this level deal with this by modifying their contract of services with the agent? I guess most people would not have the extra cash kicking around.

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Response by greensdale
about 13 years ago
Posts: 3804
Member since: Sep 2012

Is this about saving the 10G mansion tax or the 30G imputed cost for a buyers broker?

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