Earn your commission. Don’t defend it.

Perhaps we make to much money and should just give in, right? In case you haven't noticed its slightly harder to get a deal to closing. I'm all for negotiating if the circumstance is necessary, and if all parties come out winners.

Did you read the part in her comments where she told her seller about the blog and how he had not only read it but was reading all the comments too?  That's pretty crazy, but it turns out it looks like her response worked for her and her seller and he's totally supportive of her and the blog post. Wow. -Kasey

Hi Bryant,  Excellent perspective.  Take the offensive instead of defensive!

So much depends on the mortgage LTV.  If the buyer is putting down 20%, they can probably make up the cash difference if the seller does not meet them half way.  Buyers need to understand that appraisals are best guesses, not "words from God".  If it's a good value, losing the house over a matter of a few thousand dollars is simply bad business for the buyer.  As  Realtors we need to hone our financial selling skills to help clients make these important decisions and keep things in perspective. 

Great post! There are always options, and I love the title, thank you!

I am so dissapointed in the responses here.  #42 starts to get it.  Folks, this is a discussion board by and for realtors.  HELP each other!  Lets suggest some new solutions instead of just agreeing with the author adnauseum.

For instance, you might suggest that the buyer go to another bank.  If the price is a fair one, suggest that the buyer find additional sources of funds - parents, 401K's, sell a car, have a garage sale.  Maybe the buyer can make a consession to the seller like releasing them from a special stipulation or adjusting the closing date.  It is not just about price folks.  Be creative!!!!

This should rarely, very rarely be a problem.  Good buyer preparation and lender communication and this should never happen.  

If it does, the answer is "NO". 

Funny thing, they always find the money.

I commend you for taking an irritating moment and seeing it as an opportunity.  So often we are caught offguard when presented a situation such as this we "shhot from the hip"  as a reaction.  I have printed this post and am going to keep reading it until it sinks in as an automatic response.  Thank you.

Bryant ~ well stated.  Offering a solution is so much better than giving away a well earned commission.

Bryant, 

Love the multiple solutions!  There are almost always good options.  If we work with our clients as well as those we are in contracts with, we can find a solution that works in many cases.  Obviously not all.  

However, stopping to recognize and address the problem is a great first step to finding a solution verses making your clients mad!

All the best, Michelle

Great article, I like your approach to this!  Communication and counseling are vital in any transaction!  When you have any clients wanted to buy, sell, invest in real estate in Minnesota-think Team Ramey and put my 19+ years of real estate experience to work for them!  Upon a successful closing I offer a 33.3% referral!  Have an awesome day!

Tim

I find most appraisals can be disputed unless you have a very thick-headed appraiser which does happen from time to time. We earn our commission in many ways. Finding solutions to issues is one of them.

BB- I have done a deal with that poster and I think that in her defense, there are times when people have a legit need and man of us would be generous, and then there are times when people are stingy creeps and they should get coal. 

I believe these folks deserved black rocks. 

Seller comes down. That's the logical perspective.

Oh,

The listing agent may have over listed the home. I can say truthfully that only once has this happened to me. I make damn sure my list price can be defended.

BB,

I do sometimes find it amusing to see the differing viewpoints.  We do need to earn our commission everyday.  

Our contract spells out what to do when there is an appraisal contingency.  It isn't rocket science.  None of the remedies for a low appraisal include asking the Realtor® to contribute their commission to resolve the issue.  Regarding the comment #44 if the appraisal was for an FHA or VA loan going to another bank will not make any difference.  The appraisal is locked to the property for 6 months.  There are very few buyers who will buy a home in today's market that doesn't appraise or will come to the table with additional cash to cover the difference.  

Good reminder, BB. Some prep work in the beginning of a listing will help steer the transaction towards a solution rather than a commission fight if the appraisal comes back low. Now I just have to remember to do it at my next listing. :)

Cheers,

Robin

Bryant~Great post! I like how you tackled what can be a big challenge for many agents. Whethers it's is the appraisal or inspection issues too many times agents feel compelled to kick in commission to help the seller. If you work through the problems and help to find solutions I agree you won't have to defend your commission because you will have truly earned it.

Here's to a great 2012!

Bryant ~ Great post the seller is always looking to us for guidance having solutions is the key.