"Rolling-In" Buyer Agent Commissions ILLEGAL?

Real Estate Training & Coaching School

Business, Careers

4.7 • 669 Ratings

🗓️ 13 September 2024

⏱️ 46 minutes

🔗️ Recording | iTunes | RSS

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Summary

Welcome back to America's #1 Daily Podcast, featuring America's #1 Real Estate Coaches and Top EXP Realty Sponsors in the World, Tim and Julie Harris. Ready to become an EXP Realty Agent and join Tim and Julie Harris? Visit: https://whylibertas.com/harris or text Tim directly at 512-758-0206. IMPORTANT: Join #1 Real Estate Coaches Tim and Julie Harris's Premier Coaching now for FREE. Included is a DAILY Coaching Session with a HARRIS Certified Coach. Proven and tested lead generation, systems, and scripts designed for this market. Instant FREE Access Now: YES, Enroll Me NOW In Premier Coaching https://premiercoaching.com Yes, it is legal to roll the buyer's agent's fee into the purchase price in the form of an increased sale price, but this is subject to negotiation between the buyer and seller. However, there are several key considerations: 1. Appraisal Value: The most important factor is the appraisal. If the buyer and seller agree to increase the purchase price to cover additional costs (such as the buyer’s agent fee), the home still needs to appraise at or above that increased price. Lenders will only provide financing based on the appraised value or the purchase price, whichever is lower. If the appraised value comes in lower than the adjusted purchase price, the buyer would need to make up the difference out-of-pocket. HUGE Announcement: You will love this! Looking for the full outline from today's presentation? Our DAILY Newsletter featured lead generation systems, real estate scripts, daily success plans and (YES) the notes or today's show. Best part? The newsletter is free! https://harrisrealestatedaily.com/

Transcript

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0:00.0	Welcome to Real Estate Coaching Radio starring award-winning real estate coaches and number one international bestselling authors, Tim and Julie Harris.
0:10.2	This is the number one daily radio show for realtors looking for a no BS authentic real-time coaching experience.
0:18.2	What's really working in today's market, how to generate more leads,
0:21.8	make more money, and have more time for what you love in your life. And now your host, Tim and
0:28.3	Julie Harris. Welcome back. Today we're going to be answering the question that we've been getting
0:34.2	a lot in different channels about how to roll in the buyer
0:37.7	agent commissions. A lot of people have been speculating that it's illegal, that what we're saying
0:42.2	is incorrect. There was an article on housing wire that was kind of dancing around the issue as to
0:47.8	whether or not it's the best thing for the case of the buyer. But what we're going to be doing today
0:52.0	is we're going to be giving you the chapter and verse on why rolling in buyer agent commissions is actually legal, and we're also going to tell
0:59.5	you how to go about doing it yourself. Now, I want to be very clear. When will you be asking the
1:04.5	buyer to actually finance their own commissions as part of the transaction? Well, that's only when the
1:09.6	seller's not willing to pay your commission as part of a concession towards the buyer, Well, that's only when the seller's not willing to pay your
1:11.5	commission as part of a concession towards the buyer, obviously, you know, for the sake of doing the deal,
1:15.8	right? There will be extreme examples, I imagine, where there'll be maybe hybrids. The seller will
1:20.7	contribute a little bit in the form of buyer concessions, and maybe the buyer agent will finance the
1:24.8	rest as part of their mortgage and things of that nature. But what matters most that you understand is that you can indeed have your buyer roll in your
1:34.1	buyer agent commission into their mortgage. And there's a specific way to go about doing it.
1:39.2	And unfortunately, a lot of this information is rather droll. Wouldn't you agree, Julie?
1:42.8	It is. But, you know, I think you
1:44.3	guys need to be really clear on the facts because this is something that will happen for you
1:49.1	occasionally, and you need to know how to do it correctly. And we wanted to make sure you know
	...

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