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3%.... For one side Right? Banks Cutting Us Short

By Jennifer Horton

Real Estate Agent with Trin Hong Real Estate Inc.

April 16, 2008 11:20 AM

Today I finally got an approval on a file that we have been working on since January.... waiting and waiting for lender approval! Today we finally received word that it looks like our file is going to be approved, however that they are going to give 3% to commissions. I thought 'for one side right?' Then the words came out of the negotiators mouth.... "for both agents. 1.5% to each agent." I was shocked! I've heard as low as 4%... but 3% for all the work we put into it seems just rediculous!

Jennifer Horton

Realtor

Trin Hong Real Estate Inc.

Marin County, CA

www.BeautifulHomesofMarin.com

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Carol Smith

Casmi Photography - Mebane, NC

Recently I heard that a bank in charge of a property around here lowered their commission to 1.5% to be shared between both sides. It was only a $60K property and took 4 months to get it worked out. Apparently the banks think that we are collateral damage when it comes to short sales and foreclosures.

Apr 16, 2008 11:30 AM

Rob Muller

ReMax Town & Country - Canton, GA

Cherokee County Real Estate

well then we should start not working with the banks. If we allow them to push us around they will

Apr 16, 2008 11:32 AM

Joshua & Kathy Schmidt

ERA Henley Real Estate - Cabot, AR

That sound you just heard was my jaw hitting the floor. I can't believe that they would do this, more or less get away with it. I am interested to see how this pans out.

Apr 16, 2008 11:54 AM

Larry Fleckinger

HouseMax Pro Realty - Melbourne, FL

I have one short sale and will never do another....they are too much work for the money...if and when you get it... I agree we are letting the banks dictate our business and the best way to stop it is to not play ball with them unless they agree to our commission!

Apr 16, 2008 12:00 PM

Trin Hong Real Estate Inc. - Novato, CA

Just curious.... Have any of you had any luck w/ negotiating a higher commission if the banks do low ball?

Apr 16, 2008 12:09 PM

Stella Barbour

NoVa Brokers LLC - Vienna, VA

Principal Broker, Serving Virginia and Maryland

If you are doing both sides, they try to do that, but I negotiate and complain until I get 2.5 on each side unless I am doing both sides, then I use the selling side as negotiation on a 2nd mortgage if there is one.

Apr 16, 2008 02:28 PM

Stella- I will defiantly try to put my foot down! I'll see where it takes me!

http://www.beautifulhomesofmarin.com/

Apr 16, 2008 05:24 PM

Michael Wayne Jackson

Coldwell Banker - Novato, CA

Broker - Seniors Real Estate Specialist Novato

Congratulations on the approval Jennifer, the most I've been cut is 4 % total. Something is better than nothing though..

Apr 17, 2008 05:14 AM

Trin Hong Real Estate Inc. - Chico, CA

Mike-

I agree, something is better than a failed deal. Ultimately we have to remember that it is our CLIENTS best interests that we should have in mind. Saving them from Foreclosure is worth a lot more than just bucks to me.

Apr 17, 2008 05:19 AM

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Jennifer Horton

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