Common home seller com­plaint: Com­mis­sion, fees too high

Sun Sentinel Broward Edition - Homespot - Broward East - - CONDO & H.O.A. LAW -

year and no in­fes­ta­tion was found. Other po­ten­tial buy­ers had an in­spec­tion, and while that in­spec­tion had come out fine, I couldn’t get a copy of the re­port.

With this fee and other costs (for the lawyer, etc.) I wound up with much less than I need to live, in­clud­ing pur­chas­ing health in­surance, which I can’t re­ally af­ford. (I have a back frac­ture and a pinched nerve and lots of pain.)

If you have any in­for­ma­tion re­gard­ing ter­mite in­spec­tion re­quire­ments, I would ap­pre­ci­ate it. I’m so sick of be­ing a home seller! much from the sale as they ex­pected. It was only dur­ing the real es­tate boom years that sell­ers were only too happy to pay clos­ing costs when they were mak­ing so much money on the sale of their homes.

One of the most fre­quented pages on Ilyce’s web­site (ThinkGlink.com) is the one that lists seller clos­ing costs. It is quite ex­pen­sive to buy and sell real es­tate. In some parts of the coun­try, mu­nic­i­pal­i­ties have ad­di­tional trans­fer fees and mort­gage record­ing taxes that can truly in­crease the cost of ei­ther sell­ing or buy­ing a home.

Of all of the costs of sale you listed, the largest was the real es­tate com­mis­sion, which prob­a­bly came in at around 6 per­cent. While ex­pen­sive, that was very nec­es­sary.

Your real es­tate agent did what he was sup­posed to do. He found a buyer for your home. While it is quite common to see a com­mis­sion of 6 per­cent, some sell­ers find agents will­ing to han­dle a list­ing for 5 per­cent. At the same time, some real es­tate com­pa­nies are shift­ing the bur­den and cost of list­ing a home from the company to the seller. Th­ese com­pa­nies charge a fixed, non-re­fund­able fee for “list­ing” the home.

This fee is in ad­di­tion to the com­mis­sion, and it can ap­proach $500. How­ever, hav­ing got­ten this fee, the list­ing company is more will­ing to take a slightly lower com­mis­sion for the sale of the home. If you change com­pa­nies, don’t sell the home or de­cide to take the home off the mar­ket, the list­ing company keeps the fee.

As for the ter­mite fee, it is re­ally a small cost rel­a­tive to all the oth­ers. Un­for­tu­nately, given where you are in the trans­ac­tion, it ap­pears that you will have to bear that ex­pense. In some states, cus­tom dic­tates who pays what clos­ing ex­pense. If there is a law in your area that re­quires the seller to pro­vide a ter­mite in­spec­tion, then you’d have to pro­vide it. If there is no law on the is­sue, lo­cal cus­tom in your area would dic­tate who should pay the fee.

Given that you say that at least one other buyer paid for a ter­mite in­spec­tion for your home, it might be that you were not re­quired to pro­vide a ter­mite in­spec­tion and that your buyer ne­go­ti­ated that point in the pur­chase and sale agree­ment. If the buyer re­quested that you ob­tain and pay for a ter­mite in­spec­tion in the con­tract, you were ob­li­gated to ob­tain it. The same might be said about the home

war­ranty.

There’s not much you can do now other than follow the terms of the con­tract you signed. Un­for­tu­nately, as you can see from the ar­ti­cles on seller clos­ing costs on ThinkGlink.com, there are dozens of clos­ing costs, and you’re prob­a­bly lucky you don’t live in a state that would have re­quired you to pay even more.

Good luck and we hope your health im­proves.

Ilyce Glink is the cre­ator of an 18-part we­bi­nar and ebook se­ries called “The In­ten­tional In­vestor: How to be wildly suc­cess­ful in real es­tate,” as well as the au­thor of many books on real es­tate.

(c) 2015 Ilyce R. Glink and Sa­muel J. Tamkin. dis­trib­uted by Tri­bune Con­tent Agency, LLC.

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