Mortgage Loans

[MisseyElliott]

1.  the seller is requesting that they have two more days to stay in the home after closing.  Is that a good idea to allow them to do this.

2.  I know the seller is paying commission but out of curiosity how do you read the commission line.  It says my realtor is receiving 2.7.  How do you read this? 

[ShanetheMortgageMan]

Staying in the home after closing is OK, many sellers want to do it in order to pack up and move after they know it's a "for sure deal".  What I'd suggest is that you require they take out a renter's policy on the home for those two days in case they do something to the property (scratched it up from moving furniture, etc.), so at least you know they'd have insurance to back up whatever they did.  In addition to requiring them to get a rental policy I'd also ask that they pay you a per diem charge of whatever your mortgage is costing you... be it $50/day or what have you.

To calculate the commission you'd take the sales price and multiply it by the percentage the real estate agent is making - so if you are buying a home for $150,000 and the commission is 2.7% it'd be a $4,050 commission.

[izoid]

I allowed the sellers to remain in my last purchase for 2 days.  I would never do it again!  My wife and I showed up to move in and they had not completely vacated the house, this was on the third day.  There was really nothing that we could do at that point but wait for them to clear out. 

When I buy a home as a primary residence I do not want to be a landlord and by allowing them to stay on that is exactly what you are doing.  If the seller soes not vacate the property you will have to get them evicted just like any other landlord.  In my opinion it is not worth the risk.

[MisseyElliott]

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ShanetheMortgageMan wrote:

Staying in the home after closing is OK, many sellers want to do it in order to pack up and move after they know it's a "for sure deal".  What I'd suggest is that you require they take out a renter's policy on the home for those two days in case they do something to the property (scratched it up from moving furniture, etc.), so at least you know they'd have insurance to back up whatever they did.  In addition to requiring them to get a rental policy I'd also ask that they pay you a per diem charge of whatever your mortgage is costing you... be it $50/day or what have you.

To calculate the commission you'd take the sales price and multiply it by the percentage the real estate agent is making - so if you are buying a home for $150,000 and the commission is 2.7% it'd be a $4,050 commission.

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Is that the total the selling agent will get or is that what is expected to be shared with his/her company.  I understand that the total commission rate was 6% so the lsiting agent and company will get 3.3% right.

[ShanetheMortgageMan]

The 2.7% goes to the real estate broker, and then real estate agent will get their split.  If the real estate agent also happens to be the real estate broker, then the agent will get the 2.7%.  If the total commission is 6% then you are right, the other real estate broker involved will get the remaining 3.3%.

[creditwatcher]

I agree with izoid! 

When a house is empty you will find things that may not have come up in a home inspection.  On the final walkthrough in the last house I bought, they carpeted around the bed in the master.  That shag carpet in the middle of the room was nasty!  Had to add carpet replacment to the budget!  There where many other things I found when the furniture was moved, but that was the one I can remember.  They also left behind 10 gallons of paint and a dead battery.  Hazardous waste! 

[maddog]

izoid--actually, you can call the sherrif and have them removed from the premises.  You can also sue them for breach of contract.

[Ausfarm]

You may want to sign a temporary lease that would allow them to stay the 2 days and have the lease/contract state that if the sellers do not move out by x date at x time, you will begin charging them rent at x amount per day.  I know in Texas, TREC (Texas Real Estate Commission) publishes a form entitled, "Seller's Temporary Residential Lease" for similar situations.  However, that's Texas and I would never suggest that you enter into a contract without understanding it. So, I would suggest asking your real estate agent or lawyer --whoever's representing you in this deal-- for their advice.

[izoid]

It is not as easy as calling the sheriff.  If you signed an agreement to rent the home back to them for a period of time you will have to have an eviction order to get them out.  The sheriff will not kick them to the curb without it.

Yes, you could sue them but that takes time and money.  All of that can be avoided by not letting them stay in the first place.

Message Edited by izoid on 05-22-2008 08:46 AM

Message Edited by izoid on 05-22-2008 08:46 AM

[DallasLoanGuy]

get in there and start painting at 6:am daily

and crank up some tunes when you are painting up until midnight