
I will not accept a job without knowing two things
- The terms of employment and compensation
- When the compensation will be paid
Although there are exceptions, I suspect most sales agents and brokers had some work experience before entering the real estate business. It makes no difference if it was hourly wage, salary or commision earnings - you knew the terms of that employment when you were hired
With one specific exception it is really quite the same in the real estate business
- The listing brokerage has their brokerage fee itemized in the listing ageement
- The listing broker also details the brokerage fee for the selling firm in the MLS listing
You know up front what the terms are at the time of settlement. The short sale transaction is an entirely different matter
- The "third party" will adjust the offered brokerage fee downward - your compensation is anybody's guess
- The listing firm will offer "X" brokerage fee to the selling firm, but then modify it elsewhere in the listing to 50/50 - your compensation is anybody's guess
- The "third party" (not the homeowner) may counter or reject your buyer's offer. If your buyer walks you don't get paid
- The "third party" may advise the seller they will be responsible for the shortfall. If the seller walks you don't get paid
- The "third party" may foreclose on the home during the short sale approval process - you don't get paid
- The seller may give up and just declare bankruptcy - you don't get paid
Before I am criticized I will admit I wrote contracts on several short sales - I didn't get paid
If a client indicates they want to look at short sales I spend a good amount of time advising them why they may be shooting at an erratic target. To date, I've been successful in finding them non-short sale listings to consider. Those that insist on seeing short sales are referred to an agent who is willing to take the risk of working and not getting paid. There are too many "maybes" and "don'ts" in a short sale transaction.

I love reading a great post like this one. thanks for making it RAIN!!!