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Are Lenders more likely to cut commission if you're double ending the deal?

Posted by David Dee on January 17, 2010 at 6:21pm

Just out of curiosity as I was browsing the shortsale deals that have closed in my area. I found that several transaction had the same agent listed as the Listing and Selling Agent. I have not been in this type of situation before so I would like to know if anyone has any feedback on this.Lenders do cut commission as we are all aware in shortsale situations. Some reduce it more than others, depending on the overall numbers shown in Hud1.Common sense dictates that lenders will cut the commission when they see that the Listing Agent is double dipping in the sale. They feel that they have already taken a huge loss and want to stick it to someone else. For those who are involved in representing both sides, what have been your outcome?

agency, commission, dual, negotiations, shortsale

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Comments

Elaine Kan February 17, 2010 at 1:20pm

Wells Fargo is countering for $50,000 more than our original offer and cutting the commission to 3% because we are double ending.
Maria Evans January 26, 2010 at 4:25pm

If it is a Fannie Mae or Freddie loan, they will pay 6% comission, no questions asked (just check their guidelines) They will try to reduce the comission but probably will pay 4% if you are on both sides. But if the realtor is the buyer, forget about... In my listings I offer 2.5 to the selling agent and if I get paid 6% I keep 3.5 . I think if they feel the agent is insecure and don't know the process they try to reduce. Must show you know your value!
Bryant Tutas January 18, 2010 at 6:45am

David it definitely depends on the lender. I just closed on a Chase getting full 6% to me and I just received approval from US Bank doing the same. I have received as much as 7%.

GMAC always states they will only pay 5% yet on my last closing I received 6 and I have one waiting to close where I will get 6.

My personal opinion is that of the deal is strong enough (high price) commission becomes less of an issue.

So it depends on the lender and the deal.
Maya Thomas January 18, 2010 at 3:12am

Yes, the bank will cut your commission to 1 side or 1/2 of the commission when you have the buyer and the seller. First you do 10X the work for the listing side and then you do all of the work for the buyer and the banks hand you 2 pennies for a 1000 hours of work. I can still hear a National City negotiator screaming at me about how greedy I am, "Look at all the money you are making and all the money we are loosing!" as if I had approved the loan for the borrower or caused the divorce or caused the city to cut all over time. "If we are taking a hit then you are going to take a hit."