Hello active rain friends,
I am helping a family member(seller) negotiate an offer in another state. It is a unique property and has been on the market since March of this year.
Scenario 1: The first offer was lease purchase with 3 year option, 9% down, with a very low monthly payment. (portion to go towards down payment on the home), close in three days, 3% commission due to Realtors to split(non-refundable). Remainder of Realtor commission due at final closing.(3 years)
Scenario 2: Second offer is for owner financing, 3 year option(balloon payment at end of 3 years), 9% down,monthly payment does not go towards down payment, close in three days, 3% commission due to Realtors to split(non-refundable). Remainder of Realtor commission due at final closing.(3 years)
Both of these scenerios are obligations to purchase the property and my relative thinks scenerio 2 is much better due to the fact that the buyer is purchasing vs. leasing. These transactions have many of the same characteristics and I've tryed to explain all the pros and cons to my relatives but looking for words of wisdom from the active rain community. What is your experience with commission paid up front?
Thanks
Lisa
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