So I just got a HAFA SS approved and I represent both buyer and seller. Now I got the sellers mom telling me I have to give her son 2% from my commission. I already worked my butt off getting the home 14K cheaper than they wanted to take working my way up to the asset manager and I already got all of his CC paid for.
Does anyone know if HAFA wont allow any portion of commission to be contributed to a buyer? Where would the money go besides discount points in the CC are already paid?
ugh.......
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That would be a "no", naw, no way and sorry all rolled into one.
Be strong.
Seller's mom? or buyer's mom?
You deserve a full commission, you did double the work and took on twice the liability.
In my experience, HAFA will need to approve any changes to the HUD including the buyer's side.
Most likely, the buyer's lender will not allow your contribution because the buyer has to meet their minimum down payment contribution (3.5% on FHA).
Let the seller's (buyer) mom know that anything outside of escrow would be a RESPA violation and you must follow strict rules.
Also, unless the son has a license, you can't pay him.
Be strong!
I would not give up any of my commission. I work too hard and I consider that taking food from my family's dinner table. Usually when someone asks me to give up my commission and I promptly respond NO they tell me that it doesn't hurt to ask.
Travis I just read how you handled this situation and glad it worked out. Good result.
I talked to his mom for probably 40 minutes on the phone and got it worked out. By the end of our conversation she was laughing. Like a lot of consumers, she thought that we dont earn our commissions and she felt she could negotiate a better deal without a BA due to crappy a BA she had worked with in the past. She felt that she should get a 3% discount in the price or have her CC paid for out of BA commission. I explained to her that any monies being paid for or gifted have to be disclosed to ALL parties for approval in any deal, especially a short sale. She didnt realize that I not only got the lender to pay for his CC but 13K off the price by who I knew at B of A and how to structure the deal to make the investor see it was the best deal they were going to get, so they better take it.
We all come into similar circumstances just like this. Consumers think we are lazy, uneducated, unprofessional, money hungry, arrogant and extremely selfish. If we all strive to make a difference we will all benefit from it. Sitting down and answering all of her questions not only saved major heartburn on this deal but earned me 6% and also gave me a new client.
Just say no...In Oregon it is against the law to share any part of your commissin with an unlicensed person. Did you say the Seller's MOm? or buyer's Mom. If it is the Seller's Mom you need to tell her it is a Federal Law that the seller get nothing from the sale...The buyer's bank will not allow monies go to the buyer without declaration on the HUD..and it has to be
approved by the bank as within the guidelines of the closing costs...so if it is above the allowed limit or actual it will not fly.
What nerve1!
First, this is one of the reasons we do not double-end in our brokerage. Having said that - your original questions is conflicting - you say the SELLER wants 2% but then it sunds like it's the BUYER that wants the 2%. Most likely the Seller cannot receive anything from your commission in a a short sale -HAFA or not.
Second, assuming your Byuer signed a "Buyer's Representation Agreement" that outlined the terms of your agreement with them, provide another copy and remind them they already agreed to these terms.
Third, just say NO. I'm sure you have worked hard for both Buyer and Seller and deserve the commission. What are they going to do if you just say NO?
But, make sure you are doing what's in the best interest of your clients without the influence of the commission.
Best of luck,
I want to throw another point in here and add that sometimes we need to remember that we are in fact professional sales executives. I only say that (And it's not a bad word) because being that we are professional sales executives we must always be aware of using professional and ethical sales tactics.
Now he pointed out that it was a misunderstanding and she 'Thought". My point being that sales is a transference of feeling, understanding what the client emotionally needs and wants and giving it to them.
If a proper discovery was done upfront, taking into consideration all possible scenarios that may play out and truly understanding what there desired outcome would be, we then can go back and address possible scenarios like this.
We must also remember using great questioning skills. By going back and asking her 1st, 2nd and 3rd level questions he would have been able to get to the ROOT of what it was that she was thinking and then been able to properly just address it and move on.
By having her dominant motivation, he could have addressed this and painted a picture of what she could have by moving forward and being done or what she CANT have by trying to get money that's not hers.
Ultimately I feel we must always consider these tried and true professional and ehtical sales systems to get the job done.
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