Thread: Agent credit towards closing and repair cost

Originally Posted by realbekub

Hi,

I am buying a property on short sale. My agent credits some money toward my closing and repair costs, as Bank does not negotiate the price any more. However, my closing cost is lower than the credit amount. What is the best way to get the money at the close of escrow?

Thanks in advance.

It depends on the state. Some states are what are known has rebate states. These states allow the agency to give you a cash rebate at closing. Now non-rebate states usually have legislation that says that the buyer can not recieve cash from the agent in the form of a cash rebate. If you are in one of these states your options are paying points on your loan to recieve a lower interest rate (you can also have your lender change any YSP that he is earning to a orgination fee as this will have the same effect as paying points) or having the agent purchase a gift card a some store you frequent as a closing gift to you.

You will never get a straight answer on a rebate question. The reason is that is has never been litigated and people can only speculate. Most lenders are not going to like you receiving a rebate and putting it on the HUD.

Your agent is taking a loss to HELP you make this purchase. Now you find out you don't need that much help but you still want to make the agent pay.

Seeing as the agent is the main reason you are able to buy this house you should be asking us for ways to reward your agent, not how you can get more money out of them.

Where is your gratitude? Use the money offered to accomplish your goal and let the agent have the extra money they already earned.

Most probably the answer to your queries in blurry. I think with rebate questions such as your it is hard to get a concrete fact however asking a second opinion for other agents would not hurt either.

In response to Greg's comment.

I am getting this credit towards closing and repair costs. At this point I can't repair anything, as I donot have the key. After closing, I will have repair costs for fixing. I hope this clear your comments. I have enough gratitude for someone's service to me. Thanks.

Originally Posted by realbekub

In response to Greg's comment.

I am getting this credit towards closing and repair costs. At this point I can't repair anything, as I donot have the key. After closing, I will have repair costs for fixing. I hope this clear your comments. I have enough gratitude for someone's service to me. Thanks.

This can be handled by having the funds deposited in escrow and have escrow pay the contractor upon completion of work.

It all depends on what the state law is and what your bank will allow you to do. Some states don't allow rebates, and different Banks have different policies about what they will or won't allow in terms of closing costs and repair credits. It sounds like holding the funds in escrow for repairs is your best bet.

Whatever you decide to do make sure it's on the up and up. Surely your agent is knowledgeable about your state laws concerning rebates. If you are unsure about any of this my suggestion is to contact an attorney for a brief Q & A session. That is very kind of your agent to offer funds to assist you with fixing up the house. Sounds like he or she is a real keeper.