I'm being told, a lot lately, that I should be charging for everything, when I am processing a short sale. I have seen some agents charge on the mls a fee to the buyer, a fee to the buyers agent ect. I have heard of making the escrow non refundable and 1/2 going to the short sale processor.
I'm just wondering what agents are doing out there with fees.
Paul In Orlando info@PaulAntonelli.net
Good question. I tried charging 1-2% to the buyer to process the short sale in case I ever needed to hire a person to do my short sale negotiating, but found too much resistance from buyers. Let's face it, many of these short sale buyers have little or no money so an extra $1,000 or more just isn't possible. I currently do not charge anything so I am interesting in hearing how other short sale agents are handling this.
i charge a $295 admin processing fee to the buyer
I have an addendum to the PA they sign off on at the time they submit their offer
the buyers don't seem to have a problem with this in the metro Detroit area
Paul - I think you will find that some of those practises are in conflict with RESPA rules for what an agent can charge for. At one time I looked into charging a processing fee for all the trips back and forth to a property, wages paid to an assistant, you know the list, and I was advised by the Texas Association of REALTORS legal hot line to NOT charge for usual services.
If you find another way to legally expand our compensation, PLEASE let us all know!
Linda Moreau, Broker-Associate
RE/MAX Highland Lakes, Central Texas
Hi Linda - yes, some do not really understand RESPA and we have to know in order to get it right. Fees on the HUD are covered, just remember 'AND'
If the work to close the deal was:
Short sale work is different from just RE work and it is Actual
It is necessary to get the close escrow
and it is definitely distinctive
I think that was true till couple of months ago; based on court actual case/s, as long as the agent DOESN'T share ANY part of the Transaction Fees with any 3th party, it IS OK to charge Trandaction Fees.
Don't Charge anything, I represent many Home Buyers, when we see there is a charge the Listing Agent is trying to impose we pass on that property.
My suggestion on how to compensate yourself negotiating your Short Sales is: As the Listing Agent you List for X%, instead of 50/50 Co-Op to Buyers Agent, maybe 60/40.
Don. That's a good idea, seeking a 60:40 split. I wonder if there would be resistance.
I am actually doing this now -- 60/40 co-broke split on all Short Sales.
so, instead of the buyer (or you) paying a small admin processing fee you would rather take a cut in your commission????
The problem with that small admin processing fee is that most banks don't see it as that. Since agents are independent contractors that are solely commission based, they see it as additional commissions received outside of closing and that is a big no no. I see some people get around that by starting a separate company for it for SS services, however banks (and their attys) may see that as misleading and fraudulent. I see this on the REO side. They also frown on agents using companies that they have an interest in doing additional business on their properties and don't allow it. As I stated before, Once the banks and Realtor Associations see this, it will put up red flags and eventually I see SS moving toward REO restrictions and regulations from the banks perspectives.
Hi Paul. As a short sale listing agent, I just pay my negotiator through escrow and that's that! I never ask the buyer side to participate in the cost of the short sale.
How do you like using a negotiator? Are the lenders paying their fees.?