For those who work with RE agents, my understanding is that the agent must take a reduced commission, usually about 2% during a short sale.
But I also remember hearing that banks offer agents the full 6% commission? Is anyone familiar with this ?
It really depends on the market conditions. Commissions are worked out between the parties. Usually the listing broker will offer at least a competitive commission to the buyer’s broker. For example, the listing broker may get 2% and give the other side 3% - but he probably received a number of listings from the lender, so it all works out in the end.
Banks don’t “offer” anything. They may have guidelines as to the max they will pay.
You, (or whoever fills out the HUD) can put in what you want for commissions. If it is over the lender guideline, they will tell you.
But remember any amounts you pay out for commissions or closing costs or whatever on the HUD simply lessens the net to the lender- which is what they REALLY care about. So you should try to limit the payouts to increase chances of approval. You should be pushing the Realtor to accept less way before the bank does.
As eric3 says you can put any commission that you want but that lowers the ‘net amount’ the lender gets.
My agent asks for 6% but will settle on 4%, which is typical in my area. My agent then returns half to me after closing. We have worked this out because she does next to nothing on these deal which I find and bring to her