Looking for some input as to what other agents feelings are regarding uneven commission splits. I recently had a listing agreement with a 6% commission and advertised at 2.5% split on MLS. It is approved at 6% and sent HUD over to buyer and agent is making a fuss because he feels this is unfair. Mind you its only a 25k property but just curious as what other agents opinions are as he is claiming that I am being unethical.
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Good responses here. The advertised commission in MLS is what gets paid, except if the lender reduces commission, we split thre reduction 50/50 on a short sale. I always split 50/50 on every deal, I am a listing agent but always err on the side of the buyers side not taking a cut if at all possible. I want the buyers agents to show my listings first.
I pay 3% maximum because my Broker won't allow me to pay anything less unless the Bank reduces it (then it's 50/50). I can keep more than 3% if the Bank approves more than 6% (total) if my client approves. I've had this happen a couple of times with Litton.
Kevin, your broker is telling you that you have to pay 3% on a co-broke? So if you take a 5% listing, you have to pay 3% to the co-broke?
Maybe it's time to look for a new Broker !
Ya think? I could not or would not work for a broker who tried to micro manage me. At KW, as you know Thom, we have a cap on commission and I cap usually in 30 to 60 days so it does not really affect my broker on how much I charge, they only get so much out of me anyway :)
It is very simple. The commission offered in the MLS is the amount the LIstign agent offered as coop - this is whole fundtion of teh MLS itself - to offer cooperative commission to other brokers for selling your listings. It is, was it is. If you offered 2.5% that what they get. As for short sales, our MLS rules require it be stated that any reduction of commission due to short sale must be clearly define "the method the reduction will be calculated" so rather than commission will be split 50/50, most Listing Agents here in SoCal now use "Any reduction in commission by short sale lender will be reduced equally to each brokerage" - so if there is a 1% reduction, each side takes a ½ percent reduction.
As long as it is spelled out, it's fine.
You offered 2.5% and it's not been reduced by a lender so that's what the other side gets - period.
Good luck,
Perfectly stated. Even without short sales I have seen agents list and offer 2.5 and keep 3.5, and I cant complain. As has been stated, I saw the commission before I showed property so where is the problem. Dealing with short sales, I also know going in that there may be a problem with reducing the commission, so again, eyes wide open, I move forward. I also , like someone else on this board practice in Illinois, and it is common to put on cc that any reductions will be split 50/50. I usually split the commission 3 and 3 to begin with, but am starting to rethink that stragegy, since most of my Short Sales seem to go through 2 or 3 contracts before we get one that sticks... Perhaps, if you want to stay in as much control as possible (in a short sale!), you should concentrate more on taking the listing side rather than the buyer side.
Nancy -
Well stated - eyes wide open - MLS stated split is what you get - don't like it - get it from your buyer - should not be an issue if you know how to position yourself as a "short sale" expert or whatever you believe to be.. I too am in IL and how about splits on rentals???? Talk about uneven - good one for another discussion.
Fantatic..ha-ha..List Agents do the work. Experienced List Agents with Short Sales deserve every cent!
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