RealTown's RealTalk

I did some short sales before and the lender did not reduce my commission, thanks to a company who negotiated the short sale for me and who promised me that I would still get my 3% as listing agent. It all depends on who is negotiating for you, maybe if you will negotiate it yourself then the lender will try to reduce it. Try to research online for companies who does this kind of business and who will not charge the seller anything. My first short sale went very bad, the company that my seller hired charged her $395 upfront and they were not able to help her and her home went into foreclosure. My seller and I both tried to run after them but they never returned phone calls nor answered e-mails anymore. Please do your own due diligence before you hire or refer anybody to the seller and always follow up with them before and after the short sale is approved by the lender. Also always keep the buyer's agent updated as well, it takes too long for this kind of transaction to close.

Denise,

John,

I think he meant the full offer price itself was $20k deficient from what's owed hence the short sale - my SS homes are all listed for less than what's owed.... I think too the comment about the homeowners deciding to go to bankruptcy - that's too bad - I read I thought in this group that when you do your settlement statement prior to submittign your package - if you have 2 banks - to actually put an agreed to amt (say $5k or max $10k) from the buyers side to the 2nd bank) that this eliminates a lot of time and bureaucracy and the 1st only is concerned with their portion and has a right to refuse or counter ...

Maha

The commission question comes back to the amount of work that is put into the package and sale. The more prepared and diligent you are the more you will earn that commission. You can be sure that lenders will try to get as much as they can and they may ask for a cut in commission. Don't take that request personally, it is a business transaction. You'd be amazed how many people will give in and just cut the commission. Don't be afraid to just say "NO" That simple phrase works better than you might think.

Please remember that EVERYONE in these sales is taking some kind of loss (except the buyer). We need to be sensitive to that when we argue about the commissions. go with the tact of how your work has maximized their return and therefore the value returned towards the transaction should be compensated as such.

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Sidney wrote in part -

"The commission question comes back to the amount of work that is put into the package and sale."

Here I disagree. We have never been paid by the hour. Some sales happen the first day a property is on the market or the first day we're out with a buyer. Other sales take weeks or even months for us to see the fruits of our labor. For those that happen so quickly, should we feel quilty that we are making so much money? No!

Then Sydney added, "Please remember that EVERYONE in these sales is taking some kind of loss (except the buyer). We need to be sensitive to that when we argue about the commissions."

That fact that the lender or the seller is taking a loss should not really be our overriding concern as real estate agents. We can certainly emphathize with their problems, but we, as real estate professionals, are hired to do a job - either get the property successfully sold or find the best property for our buyer clients - all for the fee we are willing to accept from the seller or for the fee that was offered to us by the listing firm originally in the MLS to bring a buyer who is acceptable. We don't get paid by the mile or by how many doors we open. We are no different than a surgeon, an accountant, or an attorney - regardless of the physical, financial or legal "health" of the patient/client. And if we perform our job, just like these other professionals, we deserve to be paid our full fee.

The vast majority of us, as real estate professionals, did not put these sellers into their fix. As adults when they purchased, they either were aware or should have been aware of what they were getting themselves into and the ramifications of what would or could happen. Very simply put - "you pay, you stay... you don't, you go". As adults, our decisions have consequences.

Now as to Sydney's later point of how to tactfully negotiate, "Go with the tact of how your work has maximized their return and therefore the value returned towards the transaction should be compensated as such", that could be a great way to "sell" them on why you should get the full brokerage fee. But many agents today are far too willing to cave in and basically say, "Gosh, pay me anything you like!", all of which just goes to show the other parties that we don't value ourselves and the services we perform. If you think your job is saving souls, you need to turn your collar around and get out of real estate. Real estate is not a hobby or charity work - this is a profession. Ha!

Win

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Win Singleton, CRB, e-PRO
Associate Broker
Northern Virginia Real Estate, Inc.
1018 Shipman Lane, Suite 200
McLean, VA 22101
(703) 536-7631
wins@winsingleton.com
Licensed in Virginia
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Tal Kramer

Tal and Jeanette Kramer, e-PRO, ABR, CDPC
Re/Max Communities
770-971-0025
678-978-1900 - Tal cell
678-978-1800 - Jeanette cell
Kramer@MyDreamHome.com - Tal
Jeanette@MyDreamHome.com - Jeanette
www.MyDreamHome.com

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