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Old 07-28-2009, 06:33 AM
 
3 posts, read 7,468 times
Reputation: 10

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I have been involved in a short sale for the last 60 days for a house in Florida. I am the buyer and the buyer's agent. I disclosed this on the first written contract back in June. The bank finally came back yesterday with their final approval denying me any commission at all which was valued at close to $6,000.00

Why wasn't this explained to me in the beginning? I talked to my broker and he claims the banks are protected due the language in the mls stating, "lender may reduce the commission based on purchase price." I don't agree this covers them at all!

So they can reduce to 0!! The short sale price was 349K, we offered 332, not too far off....they reduced the listing agent by .5%, that would have been acceptable.

Does anyone have any advice? I just worked for free if I take this deal.
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Old 07-28-2009, 06:52 AM
 
Location: MN
761 posts, read 3,269,620 times
Reputation: 446
What can you do really? Take it or walk??? At least it is for you and you aren't working for free for someone else.
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Old 07-28-2009, 06:53 AM
 
11,501 posts, read 10,993,646 times
Reputation: 7684
It's the bank's ball game - if you want to play you play by their rules.

With that being said, it is pretty crappy.

I'm seeing it less and less with foreclosures, but for a while it was pretty standard that the majority of the banks would not pay commission if the buyer was a licensed agent. At least in my area.
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Old 07-28-2009, 07:10 AM
 
Location: Central Florida
800 posts, read 2,974,664 times
Reputation: 310
If it's not a Fannie/Freddie loan, they can change the commission. Most likely, had you put the contract in another agent's name, they would have paid commission but because you are the buyer and buyer agent, they tend to think you are getting a good deal and they won't pay you commission. They often cut commission if the buyer and seller agent are the same too.

I've seen them cut selling agent commision where the agent is the seller too. The rationale is that the seller cannot benefit from the sale of the property in a short sale.
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Old 07-28-2009, 08:11 AM
 
Location: Just south of Denver since 1989
11,626 posts, read 32,324,132 times
Reputation: 8435
The MLS coop is between brokerages. Talk to your broker about going after the listing broker for the promised commission.

Why type of loan does the seller have?

Yes, as real estate professionals, we often work for free. Especially for ourselves. Otherwise we pay taxes on our deals.
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Old 07-28-2009, 08:16 AM
 
Location: Salem, OR
15,132 posts, read 37,562,689 times
Reputation: 16052
I have seen it many times on our MLS that the banks won't pay commission if the buyer is a real estate agent. I'm not at all surprised.

I don't get what you mean that you worked for free. You were working for yourself in your best interest. If you made the offer of $332 with the belief that you were going to make an additional $6K then just walk away.

You also need to look at your MLS rules because out here, the commission offering can't be 0. It can be anything greater than $1.
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Old 07-28-2009, 10:19 AM
 
9,733 posts, read 9,114,202 times
Reputation: 6387
If it makes you feel better, just tell yourself you paid full price and you commission was credited at closing.
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Old 07-28-2009, 08:58 PM
 
Location: Austin
7,238 posts, read 20,345,612 times
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It's also common in my area that they are not paying commissions if the buyer is licensed.
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Old 07-28-2009, 09:24 PM
 
Location: Barrington
62,823 posts, read 42,755,797 times
Reputation: 20250
Quote:
Originally Posted by Chicago40 View Post

I just worked for free if I take this deal.
Interesting perspective, given you worked for yourself, not a client.
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Old 07-28-2009, 11:56 PM
 
Location: Dallas/Fort Worth, Texas
4,198 posts, read 14,472,464 times
Reputation: 2682
Most banks do not pay a commission on a short sale if the real estate agent is party to the contract.

Is there anyway you get someone else to represent you?

Naima
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