Is my real estate agent trying to get more money out of us?

Question

Okay, we have begun our search for our first house. We were approved $240 k, we're looking at under $180 k though. We found 2 we really like (but I went crazy seeing the second so I'm sure he knows we want that one...). The house is new construction already down from $199k to $180k, but there are 5 in the new s/d for sale since market is slow.We thought we'd low ball for $160k and see what the builder thought, after all no one's buying... He said the builder probably wouldn't budge from his $180k b/c that's what builders do. He said we can ask him to pay closing costs of 6% (novice buyer here but isn't that the commission rate split between the 2 agents? Isn't the seller supposed to pay this anyway?). I can't tell if he's just trying to get a bigger commission or if that's really how it goes? He seems so legit and was well recommended.

Answer 1

The average (where I live) is about 2.5%-3.5%

Answer 2

yeah probably

Answer 3

I don't think your realtor is being dishonest at all, just realistic.

Closing costs, like anything else are negotiated. The realtor asking the seller to pay them does not pad his pocket, just yours. In this market, sellers are mostly picking up closing, but this is not assumed. I think you are confusing the agent commision with closing

That being said, by accepting 160k PLUS closing, the seller is in essence making around 150k (give or take)  

Your realtor should write an offer for whatever you request, just don't be surprised if it is not accepted. You should offer the 180, ask for closing and cross your fingers!

Good Luck!

Answer 4

I do think going from 199 to 180 is a great price. Then requesting them paying closing, an additional 10-11k is a great savings... But 199 to 160, that is a big stretch... I don't think your agent is being sneaky, just practical.

Answer 5

Don't be afraid to ask the agent this question. the seller does usualy pay all closing costs.

demand that he puts in the offer at $160k. the worst that can happen is the builder says no. since you are not dealing with a private seller you dont have to worry about them being so offended by the lowball offer that they refuse to entertain anymore offers from you. they will only counter the offer.

Answer 6

um no not realy if any thing its only like 100$ not much thoe