Realtors collecting fees for negotiating short sales.

I have previously seen legislation stating that a Realtor could not collect a fee for negotiating a short sale, nor could he collect extra commission for handling the short sale. 

Friday, I attended a seminar where a local Real Estate Attorney said that a Realtor can get paid and can earn extra commission.  Can anyone tell me where I can find this ruling?

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Permalink Reply by Fred Strickroot - Realtor® on June 12, 2012 at 9:22am

Glad to hear there is such a high level of professionalism and expertise in your short sale services Kevin. You can always tell when the listing Realtor in a transaction does not have a clue what they are doing.

Permalink Reply by Josh M. Boggs on June 12, 2012 at 10:12am

Kevin,

that's simply amazing!  As I too am I fellow KW agent here in San Antonio.  I had opened up a third party company so that we could start getting hired out by other listing agents that were darn selfish or stubborn to let it go so we could atleast get the deal done and get some revenue out of it and have done great for the last 2 years.  I will point out though that we have recently hit MANY walls on some of our negotiations lately and wonder if you are even going through the normal channels to process these or are you going directly to your escalation contacts to get actual decision maker attention to them day one? 

btw.. I am also part of the BofA program you mention and we are already starting to see many leads come in through that pipeline. 


Kudos on your success!

Josh

Permalink Reply by Johanna Devon on June 11, 2012 at 8:21am

This is exactly what I do.  I do everything on the listing side, including preparing filing and negotiating the deal.  When I list the house, I let the owners know the selling agent will receive 2.5% max. BUT FIRST, I check my new listings  to see if it is a Fannie/Freddie loan.  If not, then I call the company and ask them what's their standard approved commission rate.  If it is 5 then the selling company gets 2.  I never take less than 3.  This may irritate selling agents but I do all the work and make sure the deal closes and within a short period of time. 2 is better than nothing. 

Permalink Reply by Deb Orth on June 17, 2012 at 1:30am

xx

Permalink Reply by Bryant Tutas on June 10, 2012 at 12:03am

xx

Permalink Reply by Stephanie Hart CA 310-930-2342 on June 10, 2012 at 3:24am
Interesting thread... I also agree... Short sales usually fail due to the agent/negotiator! Kevin those are some amazing close times. My fastest to date W/BAC was 45 days but I appreciate a fantastically prompt negotiator on that one. Which is not usually the case! I won't "negotiate shorts" for fellow agents in my office but I will co-list and split the listing side evenly. Then if they rep the buyers it's an overall split since I end up handling most of it. 6%... I always try for more, have yet to get it. Never add extra fees?
Permalink Reply by Duretta Lorang on June 10, 2012 at 3:56am

Cindy mentioned being compensated by having a "buyer's facilitating fee"    How does that get through the bank's short sale system with approval?  Thanks

Permalink Reply by Joseph Alfe on June 10, 2012 at 11:33am

Simple: It does not come out of the sellers proceeds. Our fee is always on the buy side and approved every time by the sellers lender at closing.  Now that both Fannie and Freddie purchase guidelines specifically state that buyers may pay third party short sale fees, it is now considered "Reasonable and customary."

The key here is proper disclosure to buyers BEFORE the offer is executed, and a signed fee agreement.  A good part of my business now is consulting to brokers and negotiators about how to set up  a separate or in house negotiating service and how to get paid doing it. I don't know how others do it but I charge 3% and get it 99% of the time.

www.josephalfe.com

www.ssprocessors.com

Permalink Reply by Trong Dang on June 17, 2012 at 5:46am

Joseph,

I am interested in finding out more about how to set up a in-house negotiation services, how to get paid doing it and your fees for your advice.  I have sent you a friend request.

Permalink Reply by Erik Berry on June 10, 2012 at 5:00am

In California is a no no go to dre website and look at "short sale fraud"

Permalink Reply by Liz Kenneally on June 10, 2012 at 7:30am
Permalink Reply by Julie Wilkinson on June 10, 2012 at 11:19am

Duretta

 

Can you give us a sample copy of the paper you have the buyer sign stating that they will agree to pay the buyer faciitation fee.I need to start doing this as well Thanks For your help Julie Wilkinson

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