Will your loan consider the commission as part of the sales price?

If you financing a loan you need to know that the gross sales price listed is what the basis of your loan will be based on. Auctions and other deals that require the buyer to pay this as a listed item tha do not include this in the sales price (1) require the buyer to pay this entire amount, (2) rarely if ever allow this as part of the gross sales price in the maximum mortgage calucation, (3) may result is a loan for the reduced lower sales price that would not otherwise appriase if the commission were included, (4) require more cash out of pocket for buyers in an already cash strapped market, (5) create a red flag for buyers, lenders, and agents that the sellers financial position maybe limited or in poor standing, (6) may result in a slightly lower excise tax on the sales price less the commision, and (7)may result in other unexpected fees or conditions to the sale the buyer may assume that they do not anticipate like outstanding taxes, liens, and hidden "as is- as found" conditions. In all cases, ask prior to showings or offer if the commision is in the price or not and insist that the appraisal value include all buyer common expenses normally on the sellers side of the HUD-1 statement or assumed seller expenses. Often when the commision and extras items are added in the deal isn't quite as good or may make a big difference to the buy in waste time, opportunities, and expenses.