ActiveRain member David Podgursky has brought up some buyer agent reluctance to take on short sales because they get beat up by the lender. The same can be said for the seller agent.
A method to be explored by both agents is the guaranteed commission. This is easily created for buyer agents by having a "buyer premium" broker arrangement. In fact, the entire listing can be arranged around a buyer premium scenario where the bank gets a net figure without broker deductions on the HUD, and the buyer sees the buyer premium (seller and buyer broker fees) on their side of the HUD.
The seller agent can also have a listing agreement that requires a minimum guarantee fee - thereby moving more of the buyer funds to the bank. Remember, sellers don't have to be pennyless to qualify for a short sale - they can pay out of pockets that include a broker fee (or part of one).
Short sales are unconventional. Agents need to become unconventional as well to get the bank to realize it is maximizing the available dollars for application against its mortgage.
Experiences and comments on this would be appreciated!
Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 RPZ99@FLORIDA-COUNSEL.COM - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers with Short Sales
Interesting comment. I guess this arrangement could be pitched to potential buyers because it might keep their property taxes a little lower as well.
thanks for inviting me to view your blog. I will keep an eye out.