The 6% I’m referring to is “Seller Help,” and has nothing to do with Realtor commission. Its just a coincidence that Realtor’s commissions are usually 6% in this market.

Buyers, in this market, in almost every instance ask the Seller for closing assistance, and in most cases, they ask for anywhere between 3-6% of purchase price. So, if the purchase price is $200,000 and the Buyer requests 6% – they are asking the Seller for a $12,000 concession. The Seller’s net would be $188,000 before Realtor fees, etc…

In the case of my student, the Buyer asked for 6% Seller Help. We knew that the house would appraise for much more than the asking price. We also knew that the buyer really wanted the house. So we countered their offer by raising the asking price 3%, while still giving them 6%. So we’re really only giving up 3% total, right? Using the example above, we would have raised the asking price to $206,000 and would have given $12,000 (6%) – but our net would have been $194,000 (before Realtor commissions and other transfer fees)