How to stop short sale lenders from automatically cutting our commission

Nearly 9 out of 10 of my short sales, the lender cuts the commission from 6% to 5%. I am sick of this. They know they have us by the short hairs and do it automatically. Now I have GMAC being represented by IMPACT that wants to take 1% of my 6% commission. They want me to sign a new fee agreement and commission disbursement form. What can I do and how can this be stopped. 

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O yes i see where your going with this one, Good One Jeff but I bet normal sale are only paying only 4 %  5% if your lucky LOL

Jason, I get 6% on nearly every listing no matter if it is normal sale or not

well you try Jeff but if the deal is short at closing would you walk away from 4% or 5% ? NO

so what diff what you have on paper right, i allways ask for 7% on all listing but i may and may not get it.

 

Hey what happen to Mr. Novak anyway 

You totally missed my point. I have had to cut sometimes but it is rare. If agents are so upset I just wonder if they ever take discounted commissions on a normal listing. Actually my contract is very clear and especially on a normal sale I get 6%. I will however work with a seller who needs me to work with them. Nearly all of my short sales get 6% too.

You seem to be forgetting that short sale transactions take much more time and effort to complete (compared with a standard sale listing transaction).  The costs should be commensurate with the expertise and effort involved.

Cameron, some do, some don't.  I have some REO listings that far more time than a short sale does and some standard listings that might take as much time because the seller is more demanding.  

I see alot of agents who complain about getting a co-op of 2.5% because the bank cut the commission but when I look at thier listings they have a plethora of 2% co ops. 

I agree that short sales can take longer and can be more work and agree that fees should be commensurate with the expertise.   Seems to me though that expertise would lead to being able to get full commissions :)

There is simply no good reason we should be asked to cut our commission. I work very hard and so rarely cut my commission on a traditional sale which generally does not take as long and is not as detailed as a short sale. We agree to handle the short sales and in most cases we take 6% instead of the traditional 7% because we understand the needs and hardship of these sellers. We are professional Realtors with fees and dues along with the increased costs to keep up with our education as well if we are to do our due diligence for our buyers and sellers in the tough and ever changing market. This is my full time job which helps me provide for my family. We are working to help people and our communities and are dealing with a higher cost of living like everyone else today. Most people would not take a pay cut if they were asked to. We often work a sale for 3 to 6 months or longer and we work for FREE until we close. I have had to clean a home, clean a pool so it would pass an FHA inspection and be safe for our community, I even trimmed up the yard so the sellers would not get another $200 per month fine. Often paying out of pocket with no reimbursements by buyer, seller, or lenders just to get the sale to close. That was my choice and I understand servicers along with about 95% of people do not know what we do as Realtors. Perhaps if more servicers were Realtors we would have a much quicker, smoother short sale process and I bet the banks would make more money too!

Jason, Since I'm doing an FHA short sale and have met their required net on the HUD, I know for a fact that "banks don't care" is not always true. I know this because my negotiator went and slashed fee's on the HUD even though the minimum net was there. Banks are not stupid and will not pay junk fees or elevated commissions. You are dealing with "loss prevention," not "let's just sell houses."

I would be cool to get 10%, though!

I just had a thought. .. what if you did get 10% commission and the homeowner didn't get full satisfaction and they sued you down the road for that money after the bank sued them (or told a reporter?) It would be like Newt getting paid his "consulting fee" by Fannie and Freddie. At first it was perfectly fine, but now since he is running for office they are being bailed out by our tax dollars, his "Fees" are under a microscope.

I dont know if that has anything to do with anything .. I just thought there was a small similarity :)

How about having a law firm negotiate the terms to elleviate the burden of potential law suits?

No need to add any more cooks to the kitchen

The problem is not the number of cooks in the kitchen.  The problem is the dishwashers telling everyone they're cooks.

Good point :)  1/2 of the Realtors in my area have an Expert designation and have never worked or closed a short sale.   They advertise themselves as experts. 

I am no expert, just a guy who doesn't mind going the extra mile and not afraid of a fight, especially after I promised my seller I would do everything that I can to help.

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