Realtor Commission for Short Sale Home

Foreclosures, Short Sales, Tax Foreclosures
1

If a home on which I’m working a short sale is currently listed with a realtor and I do a successful short sale, will he get paid a commission on the home based on the short sale price? Who pays? I am working with SPS and they will pay a commission up to 5% so I would assume, in this case, the lender would allow us to include that as an expense to them on the HUD1. Is this correct? Thanks!

2

yes ,is correct

3

what is SPS??
and what do u mean u are working with a short sale??
what r u ?
the buyer?

4

SPS is the lender. Yes, I am working on a short sale for this particular home. I am an invester and will either assign the contract or sell via double closing.

5

How are you working with the bank?

Did the listing agent allow you to contact the Bank to negotiate the price you want to pay?

if so; how did you convince them to allow you to talk to the bank??

thanks

6

The home was listed with an agent January - April with no interest because the price is higher than market value. My business partner is a real estate agent so we are thinking about re-listing the home so he can get the commission when/if the short sale is approved.

7

Sara, I am an agent and do lots of shortsale both as agent and as investor (for myself). If the house is listed the seller’s bank pays for commission. In the listing agreement with the current owner I place 6% commision and on private remarks I note that selling broker must be willing to work with a 2.5% commision if seller’s bank pays only 5%. Why do I do it? guess how much is the max you can get if you ask 5%? Guess what is the max you can get if you ask for 6% … and many times I get 6% wich is a 3 and 3 split to be fair…althought the listing agent works a lot more due to the negotiations.

8

Does the bank pay a commission even if you are going to assign the contract? Do you get the 6% commission if the buyer doesn’t have an agent? Do you list properties that you are going to short sale and purchase yourself or just turn around and list on the MLS? Thanks for your input.

9

  1. Usually commission is lower if there is only one agent, about 4% (better deal than getting 3% on the 6% split) or the unrepresented party can be assigned an agent and get the 6%.

  2. Usually I only list properties that I am NOT going to buy; I either buy or list but I do not combine the actions to prevent the seller to think I am not presenting better offers so mine is accepted … conflict of interest if I am trying to sell (for the max I can get, as my listing contract indicates) but I am low-balling to buy as low as I can buy as an investor. In short, I only list properties I am NOT going to buy; I act as an agent only. If I like the property for myself, them I call the bank directly and negotiate it for myself.

  3. I have not done an assigment in a shortsale … by the way, since I do not list the properties I am trying to buy for myself, I do not see that case coming up.

10

Thanks very much for your feedback!!