Fayetteville, TN asked in Real Estate Law for Tennessee

Q: Is commission based on the Offered Price $78,000 with $2,000 Seller paying closing cost OR $76,000

I had the Buyer. The Asking Price was $79,900. It sold for $78,000 with the Seller paying $2,000 toward Closing Cost.Is the commission based off of $78,000 or $76,000. My Broker said its $76,000. I'm new to Real Estate but this doesn't make sense. My Buyer has a loan for $78,000, the $2,000 (in my opinion has nothing to do with the $78,000)

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1 Lawyer Answer
Joseph Talmadge Kirkland
Joseph Talmadge Kirkland
  • Memphis, TN
  • Licensed in Tennessee

A: Typically, the real estate commission is based on the total sales price, which in this case you have identified as $78,000.00. Sometimes the commission is based on a lesser number but a commission of less is discussed and agreed to in advance by all parties. Check the wording of the listing agreement that the seller agreed to and signed.

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