Add-on to house price

[Peter Chan]

A house owner hires an agent to sell his house for five hundred thousand dollars, as agreed with the owner the agent will sell the house for five hundred fifty thousand dollars.

When the house is sold, the agent will receive fifty thousand dollars in addition to the commission.

Can I call the sum of fifty thousand dollars “add-on/add-on value” to the house price?

Is there a formal noun for the sum of fifty thousand dollars, which can be used in document or receipt?

 

[SoothingDave]

In addition to the commission? Is that what you mean?

He will receive a commission and also receive an extra $50k?

Or do you mean that the $50k is the commission?

When people deal with selling property, they usually pay a fixed percentage commission to the real estate agents involved.

An agent will give a good faith estimate to the seller to show how much money they will receive for a given selling price. If you want $500k from selling a house, then you have to make this estimate of costs and set your selling price accordingly.

 

[Peter Chan]

In addition to the commission? Is that what you mean?

He will receive a commission and also receive an extra $50k?

Or do you mean that the $50k is the commission?

When people deal with selling property, they usually pay a fixed percentage commission to the real estate agents involved.

An agent will give a good faith estimate to the seller to show how much money they will receive for a given selling price. If you want $500k from selling a house, then you have to make this estimate of costs and set your selling price accordingly.

Yes, in addition to the commission.

The house owner wants 500K from selling the house, when a buyer is willing to pay 500k, he will sell the house and pay the agent a commission of (Y% x 500K).

But, the agent wants to earn more, with the consent of the seller, the agent will sell the house for 550K, if the house is sold, the owner will get 500K, and the extra 50k will go to the agent’s pocket. The agent will then get 50k plus (y% x 500K).

In order to avoid dispute, 2 receipts will be drafted, one for the commission, and one for the extra 50K.

What is the correct word or description to be used to identify the extra 50K?

e.g. “commission” for the agent’s reward, “transportation expenses” for the money spent in travelling.

 

[MikeNewYork]

In my opinion, that is illegal. The owner may have agreed to ask for 500K, but if the house sells for 550K, the agent does not get the extra 50K. He/she gets the same percentage of the 550K that he/she would have gotten from the 500K.

 

[Peter Chan]

In my opinion, that is illegal. The owner may have agreed to ask for 500K, but if the house sells for 550K, the agent does not get the extra 50K. He/she gets the same percentage of the 550K that he/she would have gotten from the 500K.

This practice is common in some areas, it provides incentive to agents to look for buyers.

In order to get the extra 50K, agent must obtain prior consent from the owner.

Do you think "rebate" can be used to identify the extra 50K?

 

[bhaisahab]

That would be illegal in the UK.

 

[Tdol]

How about bonus?

 

[Peter Chan]

That would be illegal in the UK.

It is easy to make the "illegal" legal.

The owner simply admits he sold the house for 550K, and because of the good service of the agent, he gave the agent extra 50K as incentive.

 

[bhaisahab]

It is easy to make the "illegal" legal.

The owner simply admits he sold the house for 550K, and because of the good service of the agent, he gave the agent extra 50K as incentive.

There could be tax implications for both parties.

 

[MikeNewYork]

I would like to meet the moron who signed that contract. I would sell him/her a bridge in Brooklyn.

No, the extra 50K would be described as theft in my opinion.

 

[5jj]

I would like to meet the moron who signed that contract.

:up:

I cannot imagine any vendor who allowing an agent to pocket all the extra received above the agreed selling price.

 

[SoothingDave]

If a buyer is willing to pay more for the house, then the "extra" money should belong to the seller. Paying the normal commission to the agent.

If the agent needs an incentive above his commission to actually do his job, one could call it a "bonus."

I would think that an agent would either get a commission or a bonus, but not both.

 

[Roman55]

I am not a teacher.

Yes, a very strange agreement indeed.

It sounds more like a "backhander" to me, but one in which no one understands what he's doing.

A buyer paying the agent a sum "under the table" to obtain a favorable deal at the expense of the seller would be understandable.

Why the seller would want to part with his money like this only makes sense if he and the agent are cheating the buyer in some way.

 

[Peter Chan]

There are too many digressions.

I close my post.

 

[MikeNewYork]

See ya.