How does the Listing Agent gets paid on REDC Auction???

Sunny - I have been thru this before. You have a listing agreement that states you will provide services in return for compensation. Let's say you agreed to list the house for 3%. If you also bring a buyer you will get 6%.

If they haven't already, they will likely tell you to take the listing out of MLS. There goes your services and there goes your compensation.

If you have two properties, how are you going to cover 3 FULL days of open houses at the same time?  HAve they given you 2% in writing? My experience is it is 1%. If it does not sell have they put in writing you will get the listing back? Have they asked you to do another BPO and other work?

You only have 3 questions to ask yourself - Is my listing agreement still active? Am I the seller's agent or is the auction house? Are they legally obligated to pay me without an agreement?

Hi Sunny,

I just went through this, I was told the compensation was reduced, but to keep it in the MLS. If a buyer's agent brought a buyer prior to the auction or signed up for the auction and won they got paid the selling side and I got paid the listing side (again a slight reduction). I was told to hold two open houses prior to the auction and market the auction with flyers (they provided). Thankfully the property didn't sell through auction, the original listing went back into effect and the commission was returned to the original amount. We have a buyer and we're all set. I wouldn't be concerned about recieving the commission, but it may be reduced. Make sure everything's in writing. Best of luck!

Redc is now paying 1% and the homes often do not sell at the auction and are then sent to someone else. There is no guarantee that you will get paid ..or that you will keep the listing.

Thanks for the post Sunny,

I haven't personally dealt with REDC but from the little activity they do in my area the rarely sell in auction.

I am really curious to hear what the process is also. I have a listing that was actually withdrawn a few months ago and scheduled for auction with REDC but was cancelled at the last minute and the listing was returned to me. During the whole process, I was sent notification that the original listing agreement was terminated and to withdraw it from MLS but that I would be paid 2% if sold at auction for continuing to manage the property. I tried for weeks to get something in writing and was told the same thing, I would be paid 2% and there really was no paperwork or they didn't know what to tell me. (I did make sure to keep the e-mails). This same property just had a contract fall through and may be under consideration to go back to REDC again so please keep us updated because it a very uncomfortable process when no one really knows anything about how we are to get paid. Sunny, just make sure that what you signed up for is for you as listing agent and not just for buyers agents. They kept getting confused with me and thought I was asking about getting paid a buyers commission(which is only 1%) and kept referring me to their site to sign up as a buyers agent. Then I would have to start all over explaining that I was the listing agent and as I said I never really got anywhere with the whole process. Make sure to read all the fine print with them.

Hi Sunny:

Actually working with a large auction company like REDC can be very profitable if you learn how to "work the system" to leverage your time and income.

First of all auctioneers to not hold open houses, they conduct property previews where all people visting MUST register, giving you a fresh lead list of active buyers.

Your time is leveraged because now you are not wasting your time on all day open houses where one or two people might show up, you spend two hours two or three times PERIOD!

The sale is pretty much guaranteed as the auctioneer does not get paid unless the property sellers.

One thing you may want to add to the paperwork is a 'Holdover listing' clause. That means in the event the property is not sold during the auction listing period, the property will come back to you for the remainder of your original listing agreement with the seller.

We are offering a new dynamic auction training program to learn how to get paid offering auctions to your sellers whether the property sells or not!

I strongly suggest you make the time to attend our event in Valley Forge / King of Prussia PA on the 28th http://www.aareauctioneer.com/

This training will give you an edge over your competition and the ability to offer auctions to your sellers and represent buyers as a buyers agent with confidence.

Regardless of whether you come to our training you need to learn mroe about auctions because they have been around since the dawn of man and are only growing in popularity.