Can Real Estate Commissions be paid by Seller Concessions in Florida?

Can seller concessions be used to pay real estate commissions in Florida, Texas, Tennessee, or Alabama?

In light of the recent NAR Settlement, I previously explained how Real Estate Commissions can be included with a USDA Loan and also reviewed how much a seller can contribute towards buyer closing costs.

In today’s short video I will answer another pressing question we receive on whether real estate commissions can be paid with seller concessions.

But before we get started, don’t forget to take advantage and download our USDA Blueprint for Success with the link below. This free guide is designed to walk you through the process step-by-step and is a great tool for both homebuyers and Realtors alike.

Can Real Estate Commissions be paid by seller concessions in Florida, Texas, Tennessee, or Alabama?

As a reminder, in situations where a seller agrees to pay towards a homebuyer’s closing costs, mortgage guidelines refer to this as either seller concessions or interested party contributions (IPC).

So, if a seller agrees to pay a homebuyer’s closing costs, can real estate commissions be paid by seller concessions?

The short answer is yes, but let’s go through the following example using a $250,000 sales price:

• Homebuyer has agreed to pay their agent a Buyer Broker commission of 3% of the sales price ($7,500)
• Seller’s Broker is only compensating 2% of the sales price towards the buyer’s agent commission ($5,000)
• Seller has also agreed to pay 4% towards homebuyer’s closing costs ($10,000 in seller concessions)
• The remaining 1% owed to the Buyer’s Broker could be paid from the 4% seller concessions along with any other reasonable and customary closing costs.

Whether Real Estate Commissions be paid by Seller Concessions – Key Takeaways:

• We would not require anything additional to be written into the contract for this scenario; and
• Remember to provide the sales contract, any addendums, and brokerage compensation agreements to the lender and title company so they can properly draft all required documents and disclosures.

Please let us know if you need a lender who understands how to maximize seller concessions and is able to help homebuyers save money when purchasing a home.

As an FHA, VA, and USDA Approved Lender, we will walk you through the loan qualifying process step-by-step. Just call, text, or email to discuss your scenario and let us show you the “Metroplex” difference!

Call/Text: (863) 593-2001
800-806-9836 Ext. 280
SeanS@MPLX.org

Thank you again for forwarding and sharing today’s video with any friends, family, co-workers, or clients who are looking to buy, sell, or refinance!

As always, I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!

P.S. – You can download our “USDA Blueprint for Success” by CLICKING HERE.