Hello. This is my first post here, and I wonder if the superstars can help me. There's a question in my Activerain SFR group that I think needs some authoritative answer. The question is, can an agent be the listing agent for a short sale property owned by the same agent? ( I think I mangled that - lol.)
I believe the agent can, as long as the same agent doesn't benefit (get paid commission) from the sale. I know I read this somewhere, but can't cite chapter and verse. Can you help? Thank you so much!
Yes, you can list and handle your own short sale but as everyone has pointed out you will not receive a commission. I also recommend referring the deal to another agent but you should NOT expect to receive a referral fee. Most banks will require the arms length document mentioned in another post as well as a document from the seller (you) that verifies the seller will not receive any monies from this transaction (might be the same document as the arms length, might be a separate one because the arms length is often directed more to the buyer).
While you can't accept a referral fee from the agent who will process your short sale, you will undoubtedly receive their undying appreciation and possibly a referral in the future. :-) A win/win. :-):-)
The agent is not who is getting paid the commission, the broker is. The problem would come in if the broker were to pay the agent a commission.
I would do as the others have said and refer it out, let an expert handle it.
My recommendation is to use another Realtor - NO referral fee - but maybe you could take the leads for the property to make it a win win??