As Short Sales continue to inundate the mortgage industry, lenders are increasingly demanding that Realtors reduce their commission, using the excuse that their policy only allows them to pay X. This is totally unacceptable!! Our job is to market these properties and get them sold. In my opinion, we are doing the lenders a favor by disposing of these properties before they become a lender owned asset via the foreclosure process. It is our expertise that generates a ready, willing and able Buyer to purchase the property at today's fair market value. The lender verifies the value using BPO's and appraisals.
Why then do they seem to always want to reduce our fee for providing this service? Did WE do something wrong? The answer is NO!! The negotiator knows that many Realtors will reduce their fee because they are hungry for a paycheck. It is time for us to stand together and Just Say NO!! We put too much time and effort into these transactions to have our work devalued and insulted by a lender's demand to reduce our fee. The negotiation is between the property owner and the lender. Don't allow the lender to drag your compensation in.
By the way, our commission is compesation for marketing the property. Non short sale listings do not include the many (often frustrating) hours of processing and negotiating a short sale with a THIRD PARTY!! At this time, we do not recieve additional compensation for this added service But I'll leave that for another blog submission in the near future.
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