The big drawback to working short sales is that the agents typically receive a reduced commission, from the loss mitigation department, for more work than what is normally required.
So, how do we stop the banks from fighting us for what is rightfully ours? How do we give in to something that one REALTOR® will never even ask another REALTOR® - a cut in commission?
Well, I don't know if we can stop the lender from asking, but why not turn the tides to our favor. Lets ask for more to start with!
When I take a short sale listing today, instead of the typical 6% commission I now insist on 8%. That's right and the seller will give it to me every time.
Now I can ethically post in the MLS that the buyers' agent will receive 4% - of course I do have my normal disclaimer that the transaction is "Subject to 3rd Party Approval".
I let the seller know that this is a bargaining chip. Every negotiation is about give and take and in most cases the bank wants to dominate the structure. It is a given that they will lower the commission that is asked for - so now I let the homeowner know that I am willing to give up to 2% back to the bank as a point to negotiate and still end up earning a fair commission.
Now, I have not yet personally closed a 8% commission for a short sale, but a friend of mine claims he just did last month - he got the full 8% with an offer that was approximately 85% purchase price to current fair-market value. Other than this one instance, I have seen 6% awarded on numerous occasions.
What I really do not want to see is an agent taking a 5% listing, offering the buyers agent 2.5% and then have then bank cut that down to 4%. You have to admit, that really bites.
I hope this little tid-bit will be found to be useful to some.
Now Have a Blessed Day,
John Occhi, Hemet CA REALTOR®
Allison James Estates and Homes
Author of "What You Need to Know...About Foreclosure and How You Can Stop It!" - If you are a Hemet or San Jacinto Homeowner please call (951-443-6259) for your free copy.
This blog and the contents written here is the intellectual property of John Occhi, Hemet California REALTOR®. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.
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I am proud to be a full time REALTOR® with Allison James Estates & Homes, who is proud to be a contributing member of the ActiveRain community.
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