I have received many calls over the years, from Agents that don't want to handle their clients' Short Sale Listings. They call me because I've been doing them for over 4 years, am certified and darned good at getting them CLOSED here in the Palm Springs Valley of California. I'm flattered. Here's my own personal rule for referral fees for Short Sale Listings..
I do not pay referral fees unless the value of the property is at least $500,000. That's it in a nutshell. If it is, then I will do the standard 25% referral fee. For less priced properties, if it's a relatively simple Short Sale Scenario, I may pay a small flat fee at close. It does not pencil out, and we are all in this to make a living, right? The Agents are often a bit shocked, and several have taken them to other agents. I support their decision.
Just read a really good blog here on AR from an Agent that does not do Short Sales. Never. He has decided they do not suit him and I believe he found the Stress, Time, and Income (or lack thereof), affiliated with Short Sales simply did not work for him. I love him for that!
Short Sales are difficult, require patience, tenacity, years of experience and know how with all the Lenders and the ability of the List Agent to guide the deal through to close. It is a skill. Short Sales take longer than a standard sale, the stress can be extreme due to the Lenders involved, and the Income/hr. is very low IF the List Agent works it to close.
I am flattered that other Agents respect me as a Short Sale Closer, and I understand if they want to get a referral fee, but for me, it just does not work in the Short Sale world.
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