I am curious how tohers handle this. We negotiate a commission structure when we take a listing, or rely on a published commission when we show a property.
A sale is contracted at, say $1,000,000, meaning the agents managed to lead all parties to agree on a $500,000 sale price.
Inspections reveal $25,000 worth of work the seller should have and could have done during ownership, but deferred. Buyer and seller agree to a credit in lieu of repairs, due to time constraints and possibly buyer's desire to control quality of repairs.
But the banks don't want to see repair credits on settlement statements. They want repairs done or price reduced.
to varying degrees I have a bunch of these about to close. I am inclined to bill commission based on the original agreed sale price. (I didn't participate in the decision to defer repairs, nor will I participate in the spending of the credit.) I anticipate pushback from the attorneys even before the sellers.
Please tell me your philosophy, practices and experiences with this issue. I appreciate your wise feedback!