Replies to This Discussion

Permalink Reply by James W. McCormack on February 16, 2012 at 5:53pm

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.

• ▶ Reply

Permalink Reply by Aileen Potter on February 17, 2012 at 12:12pm

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

• ▶ Reply

Permalink Reply by Linda Moreau on February 16, 2012 at 6:02pm

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

• ▶ Reply

Permalink Reply by Patti Guilford on February 16, 2012 at 11:31pm

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:

1. Actual

2. Necessary

3. Distinctive

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

• ▶ Reply

Permalink Reply by Don Alexander on February 16, 2012 at 6:04pm

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.

• ▶ Reply

Permalink Reply by Michael Hayley on February 16, 2012 at 6:08pm

Don. That's a good idea, seeking a 60:40 split. I wonder if there would be resistance.  

• ▶ Reply

Permalink Reply by David A. Roebuck on February 17, 2012 at 12:47am

Mike,

I am actually doing this now -- 60/40 co-broke split on all Short Sales.

• ▶ Reply

Permalink Reply by Aileen Potter on February 17, 2012 at 12:14pm

so, instead of the buyer (or you) paying a small admin processing fee you would rather take a cut in your commission???? 

• ▶ Reply

Permalink Reply by Misty McMillan on February 17, 2012 at 12:37pm

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.

• ▶ Reply

Permalink Reply by Elena H. Lobito on February 16, 2012 at 6:06pm

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.

• ▶ Reply

Permalink Reply by Michele Calloway on February 16, 2012 at 6:13pm

How do you like using a negotiator? Are the lenders paying their fees.?

• ▶ Reply

Permalink Reply by Sandy Valenzuela on February 16, 2012 at 6:08pm

In my market it has become common for the listing agent to receive 3.5% commission and offer 2.5% to the buyers agent. This helps cover costs or a 3rd party negotiator. 

• ▶ Reply

• ‹ Previous
• 1
• 2
• 3
• …
• 12
• Next ›
• Page