ONLY 3% total commission on a short sale when there is dual agency ? 

First of all, are investors on loans allowed to cut commission to as low as 3% total if the agent is representing both buyer and seller? 

Second, are we allowed to ask the investor for a copy of this guideline in writing? This is a non-gse loan. 

I appreciate all feedback. Thanks.

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Ron-- are you a negotiator? Because you said "when agents approach" you? 

Sara, I've seen a lot of discussion about this too.  I think most times if you are bordering on the investor's minimum NET they cut commission to meet the NET amount.  I've seen 4%, but never 3%.  The 4% was for two agents too.

My gut says if you get a higher offer, you could likely get a higher commission, but realistically this is just theory.  Unfortunately some homes and values won't generate a higher offer because of market conditions or home condition and you have the highest amount possible.  It all boils down to the numbers for them and the deal has to make sense and they will cut where they can. 

I just worked a short sale with HSBC.  Their commission guidelines were:

5 % commission if 2 different brokerages

4 % commission if 2 agents within the same brokerage

3 % commission if agent represents both buyer and seller.

Was yours with HSCC?


I don't have an answer for you but am curious as to your outcome.  I have an FHA short sale with an offer submitted to Bank of America where I have both buyer and seller although I fully represent the seller.  I've been told that since I have both buyer and seller that my commission may get cut to 3% but I'm wondering if the fact that I don't "represent" the buyer will be a mitigating factor.  I'm probably just dreaming but, you never know.

In a FHA Short Sale the commission is normally 6%  or prevailing rate - no where in the mortgagee letter of 2008 does it state that it should be 3% for a dual agent.  Now if the issue is that the net proceeds are less than the required at the various marketing period and you have exhausted other ways to make up the net proceeds then "maybe" you can voluntarily give up your commission.

BOA loves to make up their own rules - mostly done by individual negotiators unless you include a copy of the Mortgagee Letter which they should have sent you when you got the ATP.  You can also appeal with Hud's National Servicing Center. 

NAR got us the 6% commission when this had become an issue - don't allow BOA to take it away.




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