scottharris
New member
I posed a question to John and Noah about flip taxes- how many are No Flip Tax, 1%, 2%, 3%, 4% and who is supposed to pay them. John came back with this:
"It's not a field we're given in RLS, so I pulled listings from Jan 1, 2020, that mention a flip tax: 1,144... pretty common! I extracted the given flip tax %s and the range is 2% to 5%, with an average of 2.5%. By far the most common is 2%.
My Questions are these- could it be that even 4% don't have a flip tax? And is that even a good thing? Further, when buyers are looking at a seller-pay flip tax, is that really factoring into the discussion? We had a broker try to negotiate the agreed-upon price when they learned of a VERY STANDARD seller-pay 2% of sale price.
Are you seeing buyers try not to pay buyer-pay flip taxes right now in this climate? Is it only the really egregious ones that are causing that reaction? And do people advertise when the seller pays the flip as a beneficial attribute? Lots of questions. Curious to get your feedback. Thanks!
"It's not a field we're given in RLS, so I pulled listings from Jan 1, 2020, that mention a flip tax: 1,144... pretty common! I extracted the given flip tax %s and the range is 2% to 5%, with an average of 2.5%. By far the most common is 2%.
Flip Tax | % of Listings with Flip Tax |
1% | 5% |
2% | 63% |
3% | 17% |
4% | 1% |
5% | 13% |
My Questions are these- could it be that even 4% don't have a flip tax? And is that even a good thing? Further, when buyers are looking at a seller-pay flip tax, is that really factoring into the discussion? We had a broker try to negotiate the agreed-upon price when they learned of a VERY STANDARD seller-pay 2% of sale price.
Are you seeing buyers try not to pay buyer-pay flip taxes right now in this climate? Is it only the really egregious ones that are causing that reaction? And do people advertise when the seller pays the flip as a beneficial attribute? Lots of questions. Curious to get your feedback. Thanks!