RealTown's RealTalk

RE:  Short sale commissions.  I would beg to differ.  If the listing agent discloses the property is a short sale and commissions are subject to lender approval.  There is no issue.  If I was on an arbitration panel in this case I would rule against the complainant.  I would not hold the listing agent to the listed commission, again providing the listing agent disclosed the short sale condition in the MLS.  In most cases the bank will tell you in advance what they are likely to pay.  It's the listing agents responsibilty to disclose this to all MLS participants.  If one does not want to take a chance on getting a reduced commission representing buyers on a SS don't bother showing them.

You apparently have not heard of the new Mandatory MLS Rule that NAR in its infinite wisdom passed in DC. There was an entire thread devoted to this from a letter I sent to Dick Gaylord, President of NAR.

You do not have a leg to stand on when it comes to a disclosed Short Sale because of this new Rule. If you want to read my letter click on this link:

http://www.RealEstateTom.com/NAR.Letter.pdf

Also, no other profession involved in the Short Sale will have their fees cut... Not the Appraiser, the Home Inspector, the Termite Inspector, the Pool Inspector, the Title Company etc... Just us lowly Realtors who I guess do not count to the NAR MLS committee or Executive committee.

Tom Scaglione, Realtor

Mark Ryan Broker, Owner RE/MAX Victory Mark Ryan Group, LLC 937-353-4600

>>You apparently have not heard of the new Mandatory MLS Rule that NAR in its
infinite wisdom passed in DC.>>

The new Rule passed by the MLS Committee in DC is not Mandatory. There were
two options passed that lets the Local MLS decide how to handle the process.
One is disclosure of potential Short sales where the listing agent discloses
the information and the possibility of a reduced commission and the other
where they do not and then are liable for the stated MLS commission. This
was the first of two conditional offers of compensation that can be allowed
at the MLSs option. The second dealt with new construction where an offer
of compensation could be offered on the Net price from the builder. (Gross
less buyer add-ons).
There have been numerous misinformation posts here and I urge everyone to
read the MLS Rules before making statements that only serve to confuse those
who read the posts.
Ken Duke
Chief Executive Officer
Maine Real Estate Information System
75 Atlantic Pl, South Portland, ME 04106
Work Tel#: (207) 780-1366 Toll Free#: (800) 779-4938
Fax#: (207) 780-1367 Cell: (207) 229-5051
Email: kduke@mreis.com web: http://www.MaineListings.com

Thanks for all the comments. Fortunately I am in a market with very few short sales, I think. I have only seen 2 listings indicating they are a short sale. This may be total ignorance on the part of listing agents. I have seen many listings though that seem to be under priced to an extreme with "must sell" type comments in the listing.

I know of the NAR requirement to indicate that the listing is a short sale from this list serve but I can't remember our MLS telling us that. I may have missed the notification or forgot. Since short sales are rare here, I would bet there are a bunch that no disclosure is made. I can see the scenario where the contract is signed and then you find out the bank won't pay. The listing agent should pay the full coop then.

I know the right thing to do but I would bet 80% of our small brokers don't. I ask a lot of agents what a short sale is and they haven't a clue and think I am talking about stocks.

Perhaps if the lising agents checks the variable fee in the MLS input this would alert agents that the coop will be adjusted.  I do not like to have my fees cut but I do look at the entire situation.

Refusing to show short sales flies in the face of an agent's fiduciary to
their buyer client.??????????????????????????????

JudiB says the above. I say it flies in the face of my own "making a
living" and fiduciary responsibility to my family. I never-ever show short
sales. Never will. Thank goodness in Central Arizona we have ARMLS who say
in effect: "The co-broke can have NO conditional statements", i.e. If the
lender agrees only to pay something less than 6%, then the two brokers will
divide it equally." Go ahead, but not with me. I'm not working for, and my
agents are not working for some "mystery commission". That's NUTS!

Just as any other independent contractor can choose a job for a certain
amount of money or walk from it, I walk from all "conditional" statements
regarding commissions, walk from MLS's that say "use this title company",
and the rest of the junk listing agents put in the MLS that their seller
never authorized them to do.

I show houses with a minimum co-broke of a certain percent. Below that I
will not show. I never show a house with a condition on the Title or Escrow
company.

With the number of houses on the market, if banks involved with short sales
only want to pay something lower than I am willing to take, so be it. They
lose. I don't.

Philip Rosenberg
Broker/Owner
1-Click Realty and Property Management
Phoenix, AZ