At Family Abstract, I'm confused! I may die trying to understand how when a buyer purchases a $300,000 home and mortgages all $300,000 and is paying for it for the next 30 years ... how was the commission money paid, not by the buyers? The Buyer will end up paying 30 years of interest on both sides of the transactions commissions, yet the common belief is it is the sellers money?
Did the seller just add it to the cost of the home and "In time" the additional 6% was woven into the fair market value as the cost of the home?
What is the real value of the home is it $300,000 or is it $300,000 less the Realtors commissions, Title Insurance fees and any other hard costs that run with the property?
Why when we record the deed do we not get to itemize deductions such as mentioned above and record the deed for the true value of the home Cost - commissions and fees = Recorded Deed amount. This matters because transfer tax is being paid on Realtors Commissions by both sides no matter who the industry decided was paying the commissions.
Is this the greatest marketing genius of all time?
Please Help a Title Guy Understand. And then you can give us a shot at your title insurance work for your clients.
Glenn
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