How to get the smaller deals closed

Looking for tips on getting higher commissions paid. On lower priced listings ($65k & below). The lenders will not pay more then 6% on the listing which equates to under $1k in many instances. Most of these listing are taking 6 months or more to close. Several different challenges with financing contingencies. And several offers before closing. Anyone having success with charging a flat fees and having them paid-by lender or seller? Any other suggestions welcomed.

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Permalink Reply by Jayne Sanders on February 5, 2012 at 4:40pm

I do a bunch of itty bitty ones ($15,000 - $25,000) and you are right the commission is awful. I put a $3,000 commission on my listing agreement for anything I think will sell below $100,000. I have had a lot of push back from the banks but find when I send the a REO vs Short Sale worksheet and point out that they will be paying that as an REO then why waste more time, legal fees and carrying costs when we can just get it done now. Works most of the time. I also put all these listings in MLS at 3% and let the co op agent know that if we get the $3K I will split 50/50. If we don't get the $3K I advise her that if the buyer will kick in we can still do the 50/50 otherwise it's 3%. The ones that usually present a probleblem are the govt ones ones that are capped at 6% and even then I fight to get the extra....sometimes I do and sometimes I don't

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Permalink Reply by Kimberly on February 5, 2012 at 10:14pm

In the Detroit area where values are real low, we always charge a short sale processing fee to the buyer and/or transaction fee. The fee charge has to be placed in the MLS remarks where the buyer/buyer agent can see it. The values have decrease so much, buyers don't have a problem paying it.