When I took the listing ( short sale ) I charged the seller 7% and they agreed to it ( 3.5 for buyers agent and 3.5 for the listing agent ) but when we got the approval from the lender, they cut it to 5% - I discussed it with the sellers and they are willing to pay the difference but my broker has objected and said I can not do that. I can only get what the lender has decided to pay. Is that correct?
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I have one and they only want to pay each side $350. Then they wonder why the buyers agent is nearly MIA...
I agree 100% with Bryant. And of course anybody else who share this opinion. First of all- If you have it on HUD and bank approves it- there should be no reason for you not to get your full commission.
Second of all- getting paid after closing .....To anybody who says it is violation....So what do you call when bank asks seller to sign note and to pay installments after closing ? Is that on HUD ? And you know sometimes you have second bank who asks for that, so first still does not know about it.
Third of all ( and I think the most imortant part of this conversation)- Lilibeth- I think you are.....well.....out of luck, because listing agreement is between your broker and seller so if your broker says "no"- I do not think there is much you can do ( unless you want to open " pandora box" ). But you know what ? Look at it as good thing. Maybe your broker is mistaken, but at least it looks like he /she is honest and trying to do right thing.
Anna, you are very right- :(
I did not get my full commission- my broker absolutely forbid it- no discussion! the answer is NO. So I am really just venting right now- I felt it was unfair.
At least you closed it :)
Good job!
Just make sure you read carefully the affidavit that the bank asks the buyers, sellers and agents to sign. Often there is specific wording in there about the seller not receiving any renumeration that is not approved.
Not correct. If the seller wants to pay you need to get it on the HUD 1 and approved by the lender.
Every one in this forum should be very careful when discussing commissions. Any reference to a "Standard" or "Customary" commission could be used as evidence of price-fixing, an anti-trust violation.
I agree 100% to Bryant, I charge all sorts of percentages, sometimes I take a listing for 41/2 sometimes 5%, sometimes 6% in cases of difficult short sale, I charge 7%...I base it comparable to work I do and how much hours I estimate to get the short sale go through...All I am saying is, the lenders are being so unfair. We agents work hard to help everyone- the seller and more importantly the lender themselves- We get the house sold, and the investors get paid and on top of that, they get to charge to the government their losses and send the home owner 1099 misc of excessible and unjustifiable amount no one knows where they get those 1099 misc figures.
Speaking of 1099 misc figures, can the homeowner dispute the amount if they think it is not correct?
You don't need to dispute it with the lender. Just take your actual figures with you when you do your taxes, and you can explain it to the IRS if you get audited. A good tax person will be able to calculate what amount, if any, you will owe in income taxes based on the 1099 and other factors. I haven't met anyone yet who had to pay income taxes because of debt forgiveness in a Short Sale. Doesn't mean it couldn't happen, there are just too many factors. Remember, we are not tax advisors, we are Real Estate agents. Don't advise, refer.
yes. thank you.
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