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Reduction in Commissions to pay for a borrower/sellers HOA fees.

Posted by Jill Medigovich on April 30, 2010 at 6:44am in Short Sale Discussions

If you were working a file for over 8 months and have had 2 buyers walk, 2 declined/rejected offers and now finally have an approved buyer and approved short sale from lender,  you are down to closing, undisclosed costs owed to the HOA from the seller/borrower were far more than our approval, do you think its a listing agents responsibility to take a reduction in commissions to make the deal close or the responsibility of the seller/borrower to pay for these unexpected costs to their HOA prior to closing?

 

Should an agent be a reduced fee agent if the the listing was clearly @ 6%  and the agent has an approval from the lender @ 6% ?

 

What's your thoughts?

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Replies

  • Temi Akojie June 30, 2010 at 7:47am
    The listing agent has to negotiate with the HOA association to have that reduce. They should have been negotiating as they were negotiating with the 1st and/ or 2nd lien holder because they HOA has the right to foreclose on the property as well people sometimes over look that.
  • Jill Medigovich June 28, 2010 at 3:09pm
    I've recently taken another course which clearly defines that there are multiple ways a seller, "borrower" can work with their HOA management company, the property manger and the board of directors to have fees reduced and even some removed. Sometimes it seems to an agent that its their responsbility to make a deal work by reducing commissions but in fact remember your listing contract is what it is and typically the only time that is ever negotiated is thru an investor on a short sale. The seller though has to be the one to contact their management company. Show your worth and don't be a reduced fee agent!
  • glenn baguasan gonzales June 28, 2010 at 2:22pm
    I agree with you.
  • Bryant Tutas May 1, 2010 at 2:27am
    Jill this is 100% a business decision. It is NOT the listing agent's responsibility and it is certainly not the selling agents responsibility. BUT....we only get paid when deals close. I like closings and have paid costs to make one happen.
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