Realtor relinquishing commission on new home sale

Question

My realtor is relinquishing his commission on our new home sale, I want to know what my options are as far as the way I can use it i.e. can it be used against downpayment or will the builder use it to reduce the sales price of the home.

Answer 1

This isn't a legal issue.  Each builder has their own policies.  If you credit toward down payment, the lender will not allow you to decrease your down payment by that amount.  The lender's security is that your down payment comes from your own pocket. /

Answer 2

Just to expand on the previous answer: First, "run the numbers" to see which option saves you the most money.

Second, it may be possible to use the money to "buy down" the interest rate. Consider that among your different possibilities.

Third, treat your Realtor to a nice dinner or some other reward.

Good luck.

Answer 3

The builder will use it to either put towards closing costs, reduce the sales price of the home or give you the dollar equivalent in free options.

You cannot use it for a down payment...the bank will not allow the seller nor the Realtor to pay that on your behalf.