Short Sales and Commissions

Jack, I do not negotiate the co-broke. I offer them a full commission in the MLS and I honor it. If the bank insist on lowering the commission I will just eat it on my side. I don't feel it's fair to change the co-broke. In fact, a couple of months ago our MLS passed some new rules making this practice a MLS violation. The reason they did is folks were offering outrageous co-brokes knowing full well they wouldn't make it by the lender then at the last minute they would pull the ole' 50/50 split thing. It's bad practice and can lead to a lawsuit. Leave the co-broke alone. Your peers will appreciate it and your listings will get shown and sold.

Jack,

I also try not to touch the coop fee if I can.  I have some listings that if paid at 5% or 2.5% each agent, would be less than $1,000.  I put $1,000 in the coop fee on MLS and negotiated with the bank based on the net they wanted to achieve and got an accepted contract.  It was even on the HUD1 sent to them.  However, we get to where we need the approval letter from the lender and then is when they let me know they only pay 5%.  I kept to the coop fee of $1,000 and I am only making $325.  Sad thing is we work so hard for the commission on the SA side.  I really do believe we are deserving of 50% of the commission no matter what the percent.  There are agents who will show them...............its a tough market and they have to take what they can get.  If the house is priced right and it is good for the client then why wouldn't they show the house.  It really upsets me to hear that agents don't show homes unless they offer a certain commission.  It is total greed in my opinion.  Where is the customer service? 

What many don't realize is that you can ask the lender up front, before you waste a bunch of time, what their allowable commissions paid are.  If you know right away what they allow, then you can make up your own mind as to what is acceptable.

And where to the banks get off in dictating commissions anyways?  Isn't that tortious interferance with a contract?  The commission is between you and the seller, not the bank.  The bank is not the seller.  They can tell you what they will accept as a net, but that's it.  For a bank to say that they won't allow an agent or third party to get paid per their contract should be illegal, and agents need to do themselves a favor and stand up to the lenders on this issue.  It's the old slippery slope deal-if you begin to accept commission cuts here and there, where will it end?

Short_Sale_Expert

It always comes down to someone wanting to take money out of my pocket.  We make too much anyways is the way the banks see it.