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Banks Don't Cut Commissons-I Disagree!

An important message from "THE NEGOTIATOR!"

Quoting the negotiator..."It's the banks policy, to reduce the commissions! The commission will be cut to x% when there is two REALTORS involved!"

Would I have owed them money if I brought the buyer in myself...Just asking?

Yes the bank needs to net a certain amount of money but regardless of the offer or numbers ...they expect to pay no more than X% commission on any file. And the negotiator has spoken!

I don't call it the banks net..I call it simply cutting my hard earned commission! Happy Monday and I Love those shortsales baby ! Now to get back to work! :)

About The Author:Midori Miller is a licensed real estate associate with CENTURY 21 Sundance Realty, Real Estate Trainer and Manager . CENTURY 21 Sundance Realty is located in Volusia County with 2 office locations to better serve the public. Daytona Beach andOrmond by the Sea.midorimiller@yahoo.com (386) 453-3236

Posted by Florida Real Estate Trainer | Daytona Beach After School Training | Midori on 03/09/2009 11:39 AM

Comments (16)

Shortsales in the Training Channel

shortsales, negotiators, cutting commissions, bank policies, daytona beach real estate, daytona beach short sales, midori miller, dabmls

Originally posted at: Daytona Real Estate Training: Banks Don't Cut Commissons-I Disagree!

Post is included in group: The Ninety-ninth Percentile
Post is included in group: Short Sales Specialists
Post is included in group: Short Sale REALTORS®
Post is included in group: Realtors®
Post is included in group: Diary of a Realtor

16 Comments on Banks Don't Cut Commissons-I Disagree!

MAR

Yeeeessss, you are right. The banks don't get how much work we put into these things and the fact that the probability of close is only about 10%. They still put the squeeze on the agents.

I love your pacman pic and your attitude, "Happy Monday and I love shortsales baby!"

LOL

As far as I've seen THEY DO! They disregard anything about commissions and even give cut commissions on the NET. Arghhhh

I always advise my agents to list a potential short sale at FULL commission just in case they are asked to "share in the pain" I have also seen some agents refuse to reduce and tell the bank they will take their buyers elsewhere... that seems to work too!

I think that WE should have the ability to stop doing business with banks that don't want to pay. See how they like the deal when they aren't part of it.

Don't you just love after all the hard work we put into these short sales that the bank can come bank and say WELL WE ARE CUTTING YOUR COMMISSION!

It's a tough problem. After all the work you've done you want to get paid. To get paid, the deal must close. To close, you must bend and deal with that bank. No wins.

Midori, One possible solution to this is to write the purchase contract so the BUYER is paying a portion of the compensation for his own agent. Plus....regardless of what the bank says they are not a party to the listing agreement. Just have the seller pay the extra percentage. They can even pay it over time. Have them sign a promisory note. AND....charge an upfront fee.

So many ways to get apid. We don ot have to rely on what the bank says.

Thanks everyone for the comments...a couple of things..

I wrote this post because I read that banks do not cut commissions..they just have to net what they need to net. I don't buy it! When a statement comes out of the negotiators mouth and tells me they only pay x% for two agents...should I walk away? Is that ethical? Could I live with myself...the answer is NO to all the above! People who work shortsales provide a true service..that is my belief.

A few things happened after I posted....

A couple of people sent me the guidelines to the Fannie Mae changes...thanks but no thanks..this isn't a fannie mae loan. I manage to keep myself up to date..I have to I train real estate.

I do not need a designation to sell short sales well...wouldn't you know it...as soon as I posted this..I got solicitations. For a designation and then for a side job to supplement real estate...can you guess what it is???? Loan modifications

Broker Bryant LOL you weren't the first to think of this idea..someone called me to re-educate me..even though I have read your entire series and have take the golden morsels and used some of thoughts within your post. I've been around the block once or twice....it doesn't take a short sale for me to think about compensation....I'm a firm believer in buyer broker agreements!

Erica-the buyer and seller win..because I would never walk away because of a cut in commission..and I wouldn't do it to a buyer either! Its the agents who lose.

Too much work busting their butts to keep things moving and they pay us less to keep them busy.

Midori, I haven't had to do with a bank owned or short sale situation yet, and reading stuff like this makes me not look forward to it!

Everyone needs to net a certain percentage for their investment, not just banks, but Realtors, Appraisers, Inspectors etc... Our work is just as important. No Realtor, No Buyer most of the times because the process is too intense for those who don't know the rules and regs.

It seems like we're all stuck on the same points lately. I'm sick of the banks cuttin our commissions, while we do twice the work. Thankfully, the buyers I'm working with right now are so worried about me getting paid enough money, they keep offering to add to my commission. LOL

MAR

We have not been cut....and choose to believe they are not and have had word from "on high"...CDPE that this is the case...I will send it to you...blog on Lady...more later !

I'm telling you there is more to be made investing in short sales than going through the ringer and having your commissions cut.

The banks do it all the time and seem to take delight in announcing it to the listing agent. "Of course you realize the commission will be reduced to ____". Don't you just love it?

MAR

HI Midori, I certainly feel your pain, and just from what you wrote...you are definitely quoting CW. I have worked with them countless times before.....and today was the first time I got the phone call from the LossMit Neg saying.... "This investor backed loan will not accept anything more than FOUR, yes 4%., to pay the two realtors. " Oh, and here is the even greater clincher... we won't pay the $5 delivery fee or the $35 whatever fee.... Are you freaking kidding me? 4%? Squabbling over $40? Are you serious? The amount of work that I have put in to get this thing to the closing table is worth so much more than me making $2k. I am seriously considering boycotting anymore CW short sales. They are not worth the time and hassle. I've had a cash buyer for 2 months now, and they just told me today that they need another month at least to MAYBE approve the short sale. BOLOGNE~ I would be very interested to know what percentage of loans are backed by Fannie Mae/ Freddie Mac these days anyway. That legislation that was passed to make sure our commissions were not cut may not have a great impact at all if most loans are investor backed. Also, it really irks me that we are doing our part to bail out these banks ourselves ...and then, they want to turn around and make us work practically for FREE. AND>>>>INSTEAD of telling us up front, they wait until the very last days...to spring the terrible news.... YOur commission is being cut. That is just not right....say it up front...then, let me decide if it is worth it or find some other creative way for me to get paid what I am worth!

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Florida Real Estate Trainer | Daytona Beach After School Training | Midori

Daytona Beach, FL

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Address: 1106 Pelican Bay Drive, Daytona Beach, FL, 32118

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