Ok, this may sound stupid but I'm probably putting way too much thought into this. I have a buyer that wants to buy a 300k home. He wants to give 60k down. Is the commission going to be off the 240k, or the 300k?

Commission will be paid on the full purchase price of the home. Down payment included. Are you a real estate agent / Realtor?

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Yes, but I'm still fairly new. And this is my first client that will make a significant down payment.

Imagine this - you end up with a buyer who is quite wealthy (Can afford to finance the entire purchase themselves) - if they pay cash, would you still expect to get commission (Rhetorical of course) - There is nothing wrong with being new, and there are no stupid questions - Congrats on the closing.

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It's almost always on the full purchase price. With saying that, occassionally, where the buyer asks for closing cost assistance from the seller; the seller may also reduce the commission basis.

For instance, if the sales price is $150,000; and your buyer asks the seller to pay $5000 of the buyers closing costs. The seller may also require that the commission be based on $145,000.

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Randy Watson Texas Real Estate Agent
Mission Realty-San Antonio Real Estate
San Antonio Real Estate

the other time when the commission can be on less than the full sales price is with new home builders. they often specify that commission is based on the base price of a home and that upgrades are not eligible for commission.

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