Replies to This Discussion

Permalink Reply by Kay Mann on July 12, 2011 at 9:19am

I just did one, and that is all W-F will pay.  It is in their guidelines for REO's which also holds true for Short Sales.

 

Permalink Reply by Richard Snow on July 12, 2011 at 9:48am

I found this online:

Wells Fargo Realtor short sale guide - http://kcmblog.com/wp-content/uploads/2011/05/WellsFargoShortSaleGu...

In this Wells Fargo document it says they "allow 5% to 6% commission", and “If dual agency applies, maximum commission is 5%”.  The doc is dated 2009, but I couldn't find a more current version with different info.  Do you know where I can find their current guidelines?

Kay Mann said:

I just did one, and that is all W-F will pay.  It is in their guidelines for REO's which also holds true for Short Sales.

 

Permalink Reply by joe beauchamp on July 12, 2011 at 10:49am

Someone on this or Short Sale Specialists forum said that he got more.  I never have, never seen it.  I have learned that there are multiple investor dept's at WF with their own rules.  I found this by escalating a horrible deal - no way it could close with all the cuts.  That is when I found that WF is not just WF as a single investor.  A combination of that investor and BOA typical middle of the road commitment forced the buyer to walk.  The funny thing on this one was that I told them that it couldn't close with their numbers and asked for EITHER an approval with numbers that would work or a DENIAL.  I could get NEITHER for MONTHS until after the buyer walked.  I guess my lesson here is that BOA will issue denials all over the place, unless you ask for one..??  ;-)

Permalink Reply by Kay Mann on July 12, 2011 at 10:50am

This is the email that I received:

 

April 30, 2010

 

Dear Agent,

 

Re: Aligning REO Real Estate Commissions to Industry Standard 5% on June 1, 2010

 

This letter is being sent to inform all agents that there will be changes made to real estate commissions effective June 1st:

 

As sales partners, you know the spring selling season is upon us and opportunities abound to boost the housing market and get it on a positive track.  We have the advantages of low interest rates as well as affordable housing stock.  That’s why we appreciate the real estate partners/ professionals who work with us every day to manage our REO properties and connect potential home-buyers with these properties. By working together, we can make homeownership achievable and sustainable for more individuals and families.

 

At the same time, we’re working to achieve controlled, profitable, market share growth.  A part of being profitable is to monitor industry standards for costs in all areas of the business and stay competitive in the market place.  As a result, one step we are taking is to more closely align the real estate commissions we pay on our REO-sales that we sell for our investors to a flat 5%, which is consistent with the standard commission paid in the industry by most, if not all, servicers.

 

Effective June 1, 2010, the new commissions will be paid as follows:

 

 

	Commission as Percent of Sales Price
	On or After June 1st	Prior to June 1st	% Change
Premiere Asset Services Portfolio	5%	6%	1%
Auction NOT on-line	4%	5%	1%

 

The change in commissions will not change the property assignment parameters for agents or the way the Wells Fargo communicates with agents about properties, at this time.  We remain committed to our real estate contacts and are passionate about moving all housing inventory as quickly as possible.

 

Sincerely,

 

Permalink Reply by joe beauchamp on July 12, 2011 at 11:41am

"a flat 5%, which is consistent with the standard commission paid in the industry by most, if not all, servicers."  Yeah, well, sure, if you don't count the little itty bitty investors like Fannie Mae and Freddie Mac and almost everyone outside of WF.  ;-)

 

Wow, so I should stand back for the stampede of homebuyers out there.  I didn't know.  Thanks for the Head's Up!!

Permalink Reply by Kay Mann on July 12, 2011 at 12:14pm

You don't want to know what I really think.  lol

joe beauchamp said:

"a flat 5%, which is consistent with the standard commission paid in the industry by most, if not all, servicers."  Yeah, well, sure, if you don't count the little itty bitty investors like Fannie Mae and Freddie Mac and almost everyone outside of WF.  ;-)

 

Wow, so I should stand back for the stampede of homebuyers out there.  I didn't know.  Thanks for the Head's Up!!

Permalink Reply by Richard Snow on July 12, 2011 at 2:44pm

I may be playing 'Russian roulette' here, but it's worth it to me to tell them no deal.  If they want me to squeeze more out of the buyer so the 2nd can get what they want to agree (Navy Federal wants minimum of $10k), then I get what I want too.  It goes out this way to the negotiator in the AM.  Any thoughts? 

 

Permalink Reply by Richard Snow on July 12, 2011 at 3:04pm

Thanks Kay.   I will likely continue the fight for what I think is right, while W-F services it's agenda of paying the same for REOs and short sales.  Has anyone noted that an REO sale is almost guaranteed for an REO agent, if they are doing their job, but the odds are well against a short sale agent?

Kay Mann said:

This is the email that I received:

 

April 30, 2010

 

Dear Agent,

 

Re: Aligning REO Real Estate Commissions to Industry Standard 5% on June 1, 2010

 

This letter is being sent to inform all agents that there will be changes made to real estate commissions effective June 1st:

 

As sales partners, you know the spring selling season is upon us and opportunities abound to boost the housing market and get it on a positive track.  We have the advantages of low interest rates as well as affordable housing stock.  That’s why we appreciate the real estate partners/ professionals who work with us every day to manage our REO properties and connect potential home-buyers with these properties. By working together, we can make homeownership achievable and sustainable for more individuals and families.

 

At the same time, we’re working to achieve controlled, profitable, market share growth.  A part of being profitable is to monitor industry standards for costs in all areas of the business and stay competitive in the market place.  As a result, one step we are taking is to more closely align the real estate commissions we pay on our REO-sales that we sell for our investors to a flat 5%, which is consistent with the standard commission paid in the industry by most, if not all, servicers.

 

Effective June 1, 2010, the new commissions will be paid as follows:

 

 

	Commission as Percent of Sales Price
	On or After June 1st	Prior to June 1st	% Change
Premiere Asset Services Portfolio	5%	6%	1%
Auction NOT on-line	4%	5%	1%

 

The change in commissions will not change the property assignment parameters for agents or the way the Wells Fargo communicates with agents about properties, at this time.  We remain committed to our real estate contacts and are passionate about moving all housing inventory as quickly as possible.

 

 

Sincerely,

 

Permalink Reply by Christopher Pendleton on April 19, 2013 at 7:02am

Whatever happened with this??  Working on the same issue.

Permalink Reply by Jeff Payne on July 13, 2011 at 3:20am

I didn't read all of the posts, but I can assure you that I have closed Wells deals this year that paid 6%.  Closed several last year too that paid 6%, is this a new guideline?  Mine may have been Wells as a servicer and not the investor, I would have to check on it.

Permalink Reply by Richard Snow on July 13, 2011 at 3:58am

I decided to hold my ground.  I'm the broker of an office of agents doing short sales, and believe I set an example.  I've never been one to let anyone go after my commission, so I take great offense that either servicer or investor thinks this is their money.  I don't work for free, but consider my listing services a bargain when it's a short sale.  I've already sent it back to them, so we'll see if they're really willing to scuttle the deal for 1%.  There's no way this property will net better as a foreclosure.  Considering the illogic of many lender decisions, who knows?!!  :-)

Jeff Payne said:'

I didn't read all of the posts, but I can assure you that I have closed Wells deals this year that paid 6%.  Closed several last year too that paid 6%, is this a new guideline?  Mine may have been Wells as a servicer and not the investor, I would have to check on it.

Permalink Reply by joe beauchamp on July 13, 2011 at 2:41pm

 A huge diff - WF as servicer or WF as investor.  As servicer, yeah, I get 6%.  As investor, no, I have never gotten the 6%.  Likely a very deadly combination, which I have from time to time, is BOA as servicer and WF as investor.  Maybe 1 to 2% of BOA negotiators are good.  Maybe 5% should be at the bottom of the sea and the rest vary from capable of hitting the right buttons on a McD register and being able to read 3 or 4 pages of a town newspaper before fainting of mental exhaustion.  Their interest is in getting the file off of their desk, not getting a good deal for the investor.  After all, BOA had record profits while their investors have been sucking in dirt.

 

So, if you really get 6% when WF was the investor, I'd love to see that..

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