How many buyers agents out have refused to lower there commission in a short sale transaction? (foreclosed, 3%)
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Location: Danbury CT covering all of Fairfield County
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I had my office reduce the commision on a small purchase ($150,000) $750 of the top to make it work. Otherwise, the condo association would have foreclosed on the unit. The listing agent's office kicked in the same $, and we had both closing attorneys and my clients lender contribute to make the happen.
Another short sale I did about 1.5 years ago, the bank paid a higher than the typical commision out for some reason.
I am doing a short sale now that should that should closing in the 2.5 weeks. We are getting the full typical amount of commision.
I had it happen once when the attorney I referred my seller to volunteered a portion of my commission to the lender in order to make the deal. Of course, he didn't reduce his fee. I had no choice but to accept it but it was the last time I gave out the guy's name again.
Most our listings for short sales will have a commission set, then the words "any reduction in commission will be split 50/50 with buyers agent". Not much we can do about it if the bank comes in lower than the listing rate.
I have pitched in some money towards a utility lien that was recorded after the prelim title was run. Didn't love it, but it got the deal closed.
Most our listings for short sales will have a commission set, then the words "any reduction in commission will be split 50/50 with buyers agent". Not much we can do about it if the bank comes in lower than the listing rate.
I have pitched in some money towards a utility lien that was recorded after the prelim title was run. Didn't love it, but it got the deal closed.
This, exactly.
We've had several that were listed at 3% offered to each agent, but the bank came back and was only willing to pay a total of 5%, so both sides reduced by 1/2%.
In my opinion (not an agent, just work a desk in a real estate office), short sales should pay far more (like 10%), not less, to each side. They are 100 times more work than a normal sale.
Most our listings for short sales will have a commission set, then the words "any reduction in commission will be split 50/50 with buyers agent". Not much we can do about it if the bank comes in lower than the listing rate. ...
Such comments are not allowed in our MLS. The listing agent has to offer a fixed co-broke fee (% or $). If the bank comes back lower, then the listing agent is still responsible for paying the full co-broke. Of course, that does not prevent the agents from negotiating reductions as necessary to make a deal happen, but not required.
Such comments are not allowed in our MLS. The listing agent has to offer a fixed co-broke fee (% or $). If the bank comes back lower, then the listing agent is still responsible for paying the full co-broke. Of course, that does not prevent the agents from negotiating reductions as necessary to make a deal happen, but not required.
Our MLS doesn't allow it either, but we also have a clause that the buyer agent can't come after the listing agent if the listing agent doesn't have a way to collect. Mine have always given me my fee, but I don't do 100's of them. Aurora Bank has a very clear policy that isn't negotiable.
Our MLS doesn't allow it either, but we also have a clause that the buyer agent can't come after the listing agent if the listing agent doesn't have a way to collect. Mine have always given me my fee, but I don't do 100's of them. Aurora Bank has a very clear policy that isn't negotiable.
A lot of agents here get around it by only offering a co-broke that is very likely to be allowed by the bank, such as 2.5%. In some cases, the listing agent will get more than the buyer agent if the bank is willing to pay a higher overall fee.
...2.5% is the most common co-op in my area, regardless of the type of sale....
3% historically has been more common here, but with all the short sales, 2.5% is not unusual.
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