Short sale lender cuts my commission - should I try to kill the deal just to punish them? It's just not right! I have a listing agreement!

By
Real Estate Agent with Keller Williams Brevard BK3096946


After working 10 times harder on this deal than a standard deal, the short sale lender approves the deal but cuts the commission to way below the industry standard. My gut instinct is to pull the plug on the deal and do anything I can to make the deal fall apart just to punish the short sale lender. "Foreclose on this stupid property and stick it up your nose!!" I want to tell them.

But, of course, I can't do that to the buyer or to the seller or the title company that's worked so hard on this deal.

My point is: just because a short sale is a negotiation all around, us agents should somehow protest against the banks chopping our paychecks when our listing agreements are fully signed with the sellers for a normal real estate commission.

Any thoughts?
 
- Tom

Posted by
 

   
Thomas Taranto PA, Realtor, Broker Associate, Brevard Real Estate Council, President of the Elite Referral Network
Melbourne Regional Chamber, Notary Public
Phone: 321-394-8120           Fax: 321-435-3180

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  Thomas Taranto - Agent with Keller Williams Realty of Brevard
 
 
 
 
 
 
 
 
 

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Comments (4)

Jeanne Kozak
RE/MAX In Action - Martinsburg, WV
REALTOR and Broker/Owner in WV and VA

This is a tough one to swallow, but we all know going in that this could happen. It does not happen as much these days as it used to. If it is a Fannie, they can't cut  your commission. Have you asked the seller or buyer to pay part of your commission. J

Jan 26, 2011 01:31 PM
Kathy Aparo-Griffin
Aparo-Griffin Properties Inc - De Land, FL

Tom,


Here in WEST VOLUSIA we do a Ton of short sales..We are known as the "short sale specialists in Deland" and I can't tell you HOW many times a lender has cut our commission..Bottom line is that "SOMETHING" is better then nothing ...and YES it's NOT right...and YES we could "NOT" agree but in the long run remember your doing what you do to "HELP" someone from being forclosed on..that is what keeps a smile on my face at the closing table when I get "cut." ..To alot of realtors it's just another commission but remember to that "SELLER" it's their "LIFE," their credit and what YOU DO TO HELP THEM SHORT SALE means MORE to them then ANY MONEY!!! So keep doing what you do....There is a "bigger" person watching from above:)

Jan 26, 2011 01:36 PM
Tom Taranto
Keller Williams Brevard - Melbourne, FL
Making the Best Deals of Your Life!

I agree that it can be a labor of love. I spent untold hours helping a nice woman from California sell a lot in Palm Bay Florida for $4,000. She had a mentally handicapped son and had invested in a good number of properties to help support him in his future. But due to the timing of their "investments", more or less all of them were upside-down disasters. I was willing to do the entire short sale process and ended up with $200 gross.

But considering the times we are in... couldn't they just leave a standard commission to help us to help them? We do all the work. They take 6 months to give us an answer.

Jan 26, 2011 01:48 PM
Tom Taranto
Keller Williams Brevard - Melbourne, FL
Making the Best Deals of Your Life!

If it wasn't for my genuine concern for my sellers and/or the buyers, I just would not accept it. I don't know exactly how I would play hardball with them, but I guess I'd have to have the sellers on board to make a stand against this move by the bank. "Seller and Agent refuse to proceed with the deal if commission is cut", or something like this.

I wonder if the listing agreement is enforceable in the court of law even if the short sale addendum is added to it. The short sale addendum to the exclusive right of sale listing agreement doesn't say anything about cutting the commission. The banks can take $700 billion in bailout money, but can't let a hard-working Realtor get their normal paycheck for a deal that requires much more than normal work?

Jan 26, 2011 02:06 PM