Flat Fee Commissions

Wondering if anyone has ever got a lender to agree to a flat commission? I would love to help everyone but this possible short sale would sell for around $45,000. I would like to write the commission to be no lower $4000. At 6% it would only be $2700. At 5% only $2250. At that low of commission how do I offer any sort of incentive for an agent to show the property and/or write an offer?

 

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Permalink Reply by Brent Innocenzi on December 29, 2011 at 9:50am

Definitely will not happen on any GSE Investor Loans or FHA. I've seen commission as high as 8% on some Chase files that were portfolio loans.

Permalink Reply by Jennifer Luna SFR on December 29, 2011 at 3:42pm

I don't know who has the loan yet. I hope it is Chase.

Permalink Reply by Bryant Tutas on December 29, 2011 at 10:02am

Jennifer, You could assist the buyers agent with getting paid from his buyer. For example: Offer a 1.5% co-broke BUT also have an agreement that the buyer signs agreeing to pay his agent an additional 3%. Then simply have the seller contribute 3% towards the buyer's closing costs on the purchase contract. This 3% is used to pay the buyers agent in addition to 1.5% co-broke. The BA makes 4.5% and you make 4.5%

Most lenders will agree to a 3% seller contribution. This won't work on all transaction but it will work on most.

Permalink Reply by Jennifer Luna SFR on December 29, 2011 at 3:44pm

That sounds like a great idea! It makes sense.

Permalink Reply by Mike Rosania on December 30, 2011 at 6:55am

 I actually just closed one this morning on a BOA Coop. Sale price of 21000 . I initially asked them for a flat fee of 3500 and they agreed to 3150(15%) which has not bee the norm,

Definitely a great idea, thanks for sharing Bryant!

Permalink Reply by Bryant Tutas on December 30, 2011 at 9:57am

Mike. Did you ask them at time of listing? Or did you just show it on the prelim HUD?

Permalink Reply by Mike Rosania on December 30, 2011 at 10:02am

I requested it at the time of listing and put it on my listing contract and then loaded into Equator, they countere me back at 3150. I have another with Wells which is 40k and they will not pay over 6% but I like your suggestion for future rference as I have another under 50k.

Permalink Reply by Bryant Tutas on December 30, 2011 at 10:41am

Perfect. I had heard that they would do this but haven't tried yet. I think I will now make that standard of practice on my lower priced short sales. Good info Mike.

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