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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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.
That sounds like a great idea! It makes sense.
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!
Mike. Did you ask them at time of listing? Or did you just show it on the prelim HUD?
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.
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.
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.
I don't know who has the loan yet. I hope it is Chase.