Home : Blogs : Ascharaj (Sunny) Singh : Ascharaj (Sunny)'s Blog

How does the Listing Agent gets paid on REDC Auction???

Hello All, Two of my listings got canceled for auction sale later next month from REDC. I was really upset but thenI got an email saying that REDC will pay 2% of the sale price if closed via auction. In return they would like me to continue with property management and do 3 open houses for this auction. I don't mind the work but it all seems little scary....... I don't want to get screwed of my commission. I am hoping some of you out there will share your experiences with this sort of sale. Do they pay you the agent directly or your brokerage and how? Please advise what should i do and how????

Thank you for all your help!!!!

Posted by Ascharaj (Sunny) Singh on 11/13/2008 09:37 PM

Comments (10)

REDC Auction Listing Agent in the ActiveRain Channel

reo, auction, commission, listing agent, redc

Post is included in group: REO
Post is included in group: REO REALTORS
Post is included in group: The National REO Brokers Association

10 Comments on How does the Listing Agent gets paid on REDC Auction???

NOV

2008

Sunny - I have been thru this before. You have a listing agreement that states you will provide services in return for compensation. Let's say you agreed to list the house for 3%. If you also bring a buyer you will get 6%.

If they haven't already, they will likely tell you to take the listing out of MLS. There goes your services and there goes your compensation.

If you have two properties, how are you going to cover 3 FULL days of open houses at the same time? HAve they given you 2% in writing? My experience is it is 1%. If it does not sell have they put in writing you will get the listing back? Have they asked you to do another BPO and other work?

You only have 3 questions to ask yourself - Is my listing agreement still active? Am I the seller's agent or is the auction house? Are they legally obligated to pay me without an agreement?

Hi Sunny,

I just went through this, I was told the compensation was reduced, but to keep it in the MLS. If a buyer's agent brought a buyer prior to the auction or signed up for the auction and won they got paid the selling side and I got paid the listing side (again a slight reduction). I was told to hold two open houses prior to the auction and market the auction with flyers (they provided). Thankfully the property didn't sell through auction, the original listing went back into effect and the commission was returned to the original amount. We have a buyer and we're all set. I wouldn't be concerned about recieving the commission, but it may be reduced. Make sure everything's in writing. Best of luck!

NOV

2008

Thanks Phil & Curt, Just an update... they did send me stuff in writing regarding commission. I had to sign up on their system to manage asset i.e res.net, reotrans type, but no fees to be paid by the agent so far, attend online class & hold two open houses. I will update this blog with all the steps I go through. I am still wondering since the listing was cancelled, do they pay me through my broker or straight as a management fee? ....

DEC

Redc is now paying 1% and the homes often do not sell at the auction and are then sent to someone else. There is no guarantee that you will get paid ..or that you will keep the listing.

DEC

Thanks for the post Sunny,

I haven't personally dealt with REDC but from the little activity they do in my area the rarely sell in auction.

I am really curious to hear what the process is also. I have a listing that was actually withdrawn a few months ago and scheduled for auction with REDC but was cancelled at the last minute and the listing was returned to me. During the whole process, I was sent notification that the original listing agreement was terminated and to withdraw it from MLS but that I would be paid 2% if sold at auction for continuing to manage the property. I tried for weeks to get something in writing and was told the same thing, I would be paid 2% and there really was no paperwork or they didn't know what to tell me. (I did make sure to keep the e-mails). This same property just had a contract fall through and may be under consideration to go back to REDC again so please keep us updated because it a very uncomfortable process when no one really knows anything about how we are to get paid. Sunny, just make sure that what you signed up for is for you as listing agent and not just for buyers agents. They kept getting confused with me and thought I was asking about getting paid a buyers commission(which is only 1%) and kept referring me to their site to sign up as a buyers agent. Then I would have to start all over explaining that I was the listing agent and as I said I never really got anywhere with the whole process. Make sure to read all the fine print with them.

DEC

Hello Sunny,

REDC is the auction company contact you AM and they will tell you what your commission is. Have another realtor help you with the open house on the other house. You will get pay and it will be an easy transaction you will not have to do anything just the 3 open house and attend to the webinar. Good luck!

JAN

*************UPDATE***************

I attented webinar (15min) 1 bpo, property report, uploaded township certificate of occupancy requirements and 2 open houses. One property went under contract at the auction and the 2nd no bids. Three days later I recieved email with sale price of the auctioned property and the closing agent info. I called the closing agent and faxed the commission statement. We are schedule to close end of this month. So my fingers are crossed as everything is going smooth....

Oh, I almost forgot. 2 days ago unsold listing was returned back to me.... :-) So I am cool for now. I will update this blog as needed...

FEB

Hi Sunny:

Actually working with a large auction company like REDC can be very profitable if you learn how to "work the system" to leverage your time and income.

First of all auctioneers to not hold open houses, they conduct property previews where all people visting MUST register, giving you a fresh lead list of active buyers.

Your time is leveraged because now you are not wasting your time on all day open houses where one or two people might show up, you spend two hours two or three times PERIOD!

The sale is pretty much guaranteed as the auctioneer does not get paid unless the property sellers.

One thing you may want to add to the paperwork is a 'Holdover listing' clause. That means in the event the property is not sold during the auction listing period, the property will come back to you for the remainder of your original listing agreement with the seller.

We are offering a new dynamic auction training program to learn how to get paid offering auctions to your sellers whether the property sells or not!

I strongly suggest you make the time to attend our event in Valley Forge / King of Prussia PA on the 28th http://www.aareauctioneer.com/

This training will give you an edge over your competition and the ability to offer auctions to your sellers and represent buyers as a buyers agent with confidence.

Regardless of whether you come to our training you need to learn mroe about auctions because they have been around since the dawn of man and are only growing in popularity.

APR

I'd like to know how do we sign up with REDC. Can someone please show me how? Thank you.

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?