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

By
Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

BB's big headHi 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?

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 Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Windermere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Joe Jackson 02/11/2012 06:02 PM
Location:
Florida Orange County Orlando
Groups:
Real Estate Rookie
Tags:
respa
compensation
short sale

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Rainmaker
739,690
Ed & Tracy Oliva
West USA Realty - Arizona - Fountain Hills, AZ
The Oliva Team Arizona Agents

Bryant This is a good wright. Good Info for all to read. Good luck in your short sale business and good luck in 2012.   E

Feb 11, 2012 05:57 AM #1
Rainmaker
596,993
Jim Hale
ACTIONAGENTS.NET - Eugene, OR
Eugene Oregon's Best Home Search Website

Bryant -

You are right.  There is a lot of conventional wisdom out there that is neither wise nor current convention.

Feb 11, 2012 05:59 AM #2
Rainmaker
1,195,947
Curtis Van Carter
Better Homes & Gardens Wine Country Group - Yountville, CA
Your Napa Valley Broker Extraordinaire

Bryant

You are spot on with this. The one thing I can verify, you need to do so more than once and take the extra step to sometimes double check many of these.

Feb 11, 2012 06:02 AM #3
Rainmaker
980,189
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

I say you're a very smart broker!  It's always best to read and quote from those rules, vs. heresay.  Best of luck!

Feb 11, 2012 07:37 AM #4
Rainmaker
420,748
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Bryant, 

Excellent advice.  We don't do short sales, as we do a lot of luxury rentals and are very busy.  Having said that, we had an owner we were just about to list a new place for talk with an attorney who gave him WRONG - expensive wrong advice about the tenant breaking the lease.  It cost this owner about $6,000 to get this attorney'a wrong opinion!  

Read and understand and talk with the right folks who are EXPERTS - not folks willing to give you a free opinion!  Painful!

All the best, Michelle

Feb 11, 2012 09:33 AM #5
Rainer
80,593
Chris Lewis
Gracious Living Realty - Front Royal, VA
I want to SELL your home, not LIST it!

It's surprising how many people take advice from relatives, friends, and people in a bar, but never think to check with a (good) lawyer.

Feb 11, 2012 01:29 PM #6
Rainmaker
1,143,921
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

This is a GREAT post! I agree those doing these should read this and heed your advice!

Feb 11, 2012 03:21 PM #7
Ambassador
3,092,697
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

I haven't encountered any problems getting paid on a Short Sale in the last three years.  I don't know why agents think getting paid on a Short Sale is so difficult?

Feb 12, 2012 05:16 AM #8
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Rainmaker
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Bryant Tutas

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