"Rolling-In" Buyer Agent Commissions ILLEGAL?
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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.
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