Commissions and the Short Sale
You may want to Visit Realtor.org for further info on this... it is a bit of old news from earlier this year but I still hear agents being asked to negotiate their commissions on a short sale. I have always advised listing a property at full commission for your area. In NJ "full" is typically 6%... and Fannie seems to feel that that is a fair number. It doesn't do you any good to list a potential short sale at a discounted rate! You will work harder and longer and you do deserved to be paid more than minimum wage! We are professionals in this business after all, NOT CLERKS, NOT ORDER TAKERS! When choosing a doctor you don't shop based on price do you? (I HOPE YOU DON'T)
This is the snippet from NJAR's Week in Review:
Fannie Mae Confirms Short Sales Commissions Policy
In discussions between the NATIONAL ASSOCIATION OF REALTORS® (NAR) and Fannie Mae, Fannie Mae has reconfirmed its short sale commission policy and established a process for REALTORS®to follow if issues arise. On February 24, 2009, Fannie Mae sent Announcement 09-03 to its servicers instructing them not to negotiate commissions on short sales below the amount negotiated by the listing agent, unless the commission exceeds 6 percent. The Announcement reminded servicers that third party approvals (i.e., private mortgage insurers) may be required and can affect commissions. In response to concerns raised by NAR that some servicers of Fannie Mae loans are unaware of this policy or believe it is not binding, Fannie Mae has established a process for NAR members when short sale commission issues arise.
So, next time some one asks you to cut your commission, mention Fannie Mae announcement 09-03. Just because it is out there, doesn't mean that lenders are conforming to it. Knowledge is power and we all deserve a pay check at the end of the day!
Have a great weekend!!!
Rob
Mortgage Banker
www.RobertRaufHomeLoans.com or my blog: http://activerain.com/blogs/rrauf
(732)223-1630 x102
Since 1987 I have been helping my clients fulfill their dream of home ownership!
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