BREAKING NEWS! My commission is NOT subject to "3rd party" approval in a short sale

Real Estate Broker/Owner with Paul Howard, Broker, Paul Howard Realty 856-488-8444 8639604

January 14, 2009 09:36 AM

Here's the thing. When I sign a buyer agent agreement with my client it specifies a time period and a commission amount. It also obligates my buyer client to condition offers on the seller payment of my commission. That is NOT subject to any 3rd party approval.
Now I realize that the '3rd party' may not understand or accept this inconvenient fact but a fact it remains. I explain to my client that they may be put in the position of having to pay any shortfall out of pocket...that makes them unhappy and they generally decide to leave the short sales to others. Fine by me because, generally, getting involved with them is a waste of time for everyone involved.
There are enough legitimate sellers out there to get a real good deal rather than smoke and mirrors which is what most 'short sales' are.

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For those who have a real desire to own a home , have good credit and want help with the search, the process and especially negotiating the purchase, I'm available. My speciality is discovering financing options and negotiating purchase price and terms as an advocate for home buyers. Each home of interest requires analysis.

My primary service area is Camden, Burlington, and Gloucester counties in Southern New Jersey.

Paul Howard, Broker

NJHomeBuyer.com Realty

Cherry Hill Nj 08002

856-488-8444

MEMBER: NAEBA (National Association of Exclusive Buyer Agents www.naeba.org )

I'm worth every penny I get in compensation and buyers that have used me know it. They are entitled to have high expectations. I am not aware of even one of my prior buyer/clients that is in danger of losing their home. The vast majority purchased at a price UNDER its appraised value - even in the boom market times.

Either I have smarter than average buyers or I am a smarter than average broker - or both. Either way, I help home buyers get more for less.

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Rainmaker
393,357

Dana Hollish Hill

Hollish Hill Group, JPAR Metro Living - Bethesda, MD

REALTOR and Productivity Coach

Paul - Many of the listing agents in our area are now listing their co-op fee as 50% for short sales. This does not give a buyer any idea how much they may have to contribute to commission or receive in commission refund from us.

Is that happening near you?

Dana

Jan 15, 2009 04:46 AM

Rainmaker
86,612

Paul Howard

Paul Howard, Broker, Paul Howard Realty 856-488-8444 - Cherry Hill, NJ

Paul Howard Realty, 856-488-8444

Dana, I haven't see that but they almost always say in the listing: "commission subject to 3rd party approval".

Usually my buyer just decides to skip the ones listed as short sale because of that - and the fact that I tell them it may be weeks (or months) before they even have an answer if they make an offer.

It would be interesting to know how many of the homes listed as short sales actually get sold...Then there are a fair number that are not short sales where the listing agent & seller are offering a 4% commission. They tend to be happy when I tell them I'm only looking for the 3% specified in my buyer agent contract.

I try to the the 1% as a seller concession to the buyer.

Paul

Jan 15, 2009 05:03 AM

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