A Few Thoughts That May Help You Get Paid On Your Short Sale Transaction

Hi folks. OK so I feel compelled again to write about Short Sales and knowing how to get paid. There is so much bad information out there.

There are many agents, brokers, attorneys, negotiators and others that are just adamant that agents are at the mercy of the lenders when it comes to commissions.

I read an article on another site where the agent asked a simple question wanting to know if his seller could pay him additional commission above the 6% the lender approved.

Responders were shocked that he would even consider taking more money from his “distressed seller” others stated is was illegal or a violation of RESPA and no lender would EVER allow it.

I guess my questions are:

1. Why do so many agents not understand how to get paid?

2. Why do so many agents believe RESPA has control over every transaction?

3. Why do agents assume all short sale transactions are from distressed sellers?

4. Why do agents believe lender guidelines are laws?

5. Why do so many agents not know how to negotiate?

Here’s what I suggest.

• Seek legal advice from a competent attorney in your State to see what you can and can’t do. Make sure the attorney can back up his opinions by case law. Remember attorneys are also giving you an opinion. It may be wrong.

• Ignore most of what NAR and our local boards say about short sales. Their job is to err on the side of caution to protect REALTORS(R). Their opinions and suggestions may very well be harmful to your customer/clients and your pay check..

• Always verify. Ask to see the law. Then read it an form your own opinion.

• Know when RESPA applies and when it doesn’t.

• Understand the difference between laws, guidelines, suggestions and opinions.

For example, this blog article is my opinion based on my research. Don’t take my word for it.  

Folks, your ability to help people with their Real Estate needs is greatly limited if you don’t become a student of Real Estate. Do your own research and figure out a business plan that works of you and your customer/clients. You may be surprised to find out what you can do. What say you?