What difference does it make to second lien (Wells Fargo HELOC) to reduce sales commission?
Perhaps I missed this, and maybe it was asked before...
If both loans are with Wells Fargo, and the first loan negotiator had already provided a payoff to the second, and if the buyer or the seller agrees to contribute a sum to the second.....
....then why would the second loan negotiator still insist or stipulate that the sales commission is reduced?
No, this is not a Fannie Mae/Freddie Mac backed loan.
It seems like a standard demand or condition. The approach varies, but the song is the same.
"We normally ask to reduce the sales commission to 4% but in good faith, we'll only reduce it to 5%..."
"We'll do you a favor and reduce your commission only to 5%....usually we reduce it to 4%."
"Because we are taking such a big hit, we're requiring that commissions are no more than 5%.....we could have asked for 4% but we're making an exception."
"Our investors don't want to pay more than 4% commission."
Why reduce the commission at all? They won't get anything more after the first payoff anyway, regardless of the commission. What is the rationale behind this?
Replies to This Discussion
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Permalink Reply by Ben Benita on
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Rationale is simple -- they get paid to negotiate and screw you and your Selelr out of as much money as possible. I have LOTS of counters to the above in my book, when asked/told to reduce commission, try:
1 - “Let me check with my broker to see if we can agree to that” – this puts you in the “same boat” as your negotiator, middle-person checking with a “boss”
2 – “If I can get the Buyer to increase his/her offer by 1%, so that the investor on this receives the same NET, can we get the 6% agreed to in the signed listing agreement and sales contract”
3 – “I spoke to my broker and he said we can NOT agree to reduce the commission on this. If this buyer walks, will you at least keep the file open so we can find a new buyer, one who will cover your shortage?”
4 – Hang up and call back the next day – “I asked my broker, and he/she said we closed a short sale with you guys last month and were able to get 6%. He/she asked me to see if you or the investor can make an exception…..just this once”
we have had success with all the above......end of the day, it is just a numbers game and as long as the spreadsheet the negotiator looks at shows YOUR NET is higher than the cost to foreclose, you will get your way.....as always, escalate up if you do not -
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Permalink Reply by Pacita C Dimacali on
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Ben -- fabulous come backs. You're such a wonderful contributor.Defnitely would want to get your book and more!
Ben Benita said:Rationale is simple -- they get paid to negotiate and screw you and your Selelr out of as much money as possible. I have LOTS of counters to the above in my book, when asked/told to reduce commission, try:
1 - “Let me check with my broker to see if we can agree to that” – this puts you in the “same boat” as your negotiator, middle-person checking with a “boss”
2 – “If I can get the Buyer to increase his/her offer by 1%, so that the investor on this receives the same NET, can we get the 6% agreed to in the signed listing agreement and sales contract”
3 – “I spoke to my broker and he said we can NOT agree to reduce the commission on this. If this buyer walks, will you at least keep the file open so we can find a new buyer, one who will cover your shortage?”
4 – Hang up and call back the next day – “I asked my broker, and he/she said we closed a short sale with you guys last month and were able to get 6%. He/she asked me to see if you or the investor can make an exception…..just this once”
we have had success with all the above......end of the day, it is just a numbers game and as long as the spreadsheet the negotiator looks at shows YOUR NET is higher than the cost to foreclose, you will get your way.....as always, escalate up if you do not -
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Permalink Reply by YOUSUF CHOUDHRY on
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Ben, Thanks for good tips,Keep posting.
cite>Ben Benita said:Rationale is simple -- they get paid to negotiate and screw you and your Selelr out of as much money as possible. I have LOTS of counters to the above in my book, when asked/told to reduce commission, try:
1 - “Let me check with my broker to see if we can agree to that” – this puts you in the “same boat” as your negotiator, middle-person checking with a “boss”
2 – “If I can get the Buyer to increase his/her offer by 1%, so that the investor on this receives the same NET, can we get the 6% agreed to in the signed listing agreement and sales contract”
3 – “I spoke to my broker and he said we can NOT agree to reduce the commission on this. If this buyer walks, will you at least keep the file open so we can find a new buyer, one who will cover your shortage?”
4 – Hang up and call back the next day – “I asked my broker, and he/she said we closed a short sale with you guys last month and were able to get 6%. He/she asked me to see if you or the investor can make an exception…..just this once”
we have had success with all the above......end of the day, it is just a numbers game and as long as the spreadsheet the negotiator looks at shows YOUR NET is higher than the cost to foreclose, you will get your way.....as always, escalate up if you do not -
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