Replies to This Discussion

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on March 15, 2011 at 4:55am

Jeff -

I think what you and the other agent did is admirable.  We have all done this at one time or another.  What bothers me is a conversation I had with a negotiator who basically said that "agents care so much about their clients, they are willing to give up their commission to get the deal done so we take advantage of that in our negotiations".  She was trying to pay 1% for both sides. 

 

I directed her to this website and suggested that her company could get "a reputation" taking that tactic.  We closed at 5%.

 

The back-story here is that we have to be careful just how much we are willing to "give-up for our clients" because this IS our livelihood.  I'm all for helping people in desperate situations and I contribute something from every transaction to a charity of my clients favor, but I think we may have already tipped our hand and will feel the repercussions for a long time.

 

With REDC now auctioning REOs and short sales after the were the negotiator on failed Short Sales, plus they have their own RE Brokerage "Red Crown Realty" along with Carrington Mortgage owning "Atlantic and Pacific Real Estate" and many other servicers doing the same, I think we are on a slippery slope.

 

Glad you got your closed !

 

Thom Colby

Broker

Newport Beach CA

Permalink Reply by Jeff Payne on March 15, 2011 at 4:58am

I totally agree with you.  Had it not been the final hour I would have pushed back and not done this... the Old Republic service release is what took me by surprise for sure...

Permalink Reply by Jim Hale on March 15, 2011 at 5:13am

The worst impact of this housing recession - even after all the heartache of our clients and the income impact on our industry - is that the lenders are becoming used to controlling a large portion of the real estate pie.

 

Horizontal integration by the banks into the real estate sales aspect of this overall housing industry is the worst possible development for the consumer, the economy and the polity of the nation.

 

The bankers have way too much control over all of us already.

 

We all have to do what we feel is best, Jeff.

 

But I would not have broken my previously negotiated commission nor would I have asked the other agent to do so.

 

How do you know BofA is not keeping track of who is willing to do this....ready to demand the same thing next time?

Permalink Reply by Jeff Payne on March 15, 2011 at 5:19am

Hi Jim, I do appreciate your thoughts.  I had to make quick decision and had to make the decision at the time based on what is best for my client.  I did not ask the other agent to make the cut, the second mortgage made the demand for the agent contribution

Permalink Reply by Bryant Tutas on March 15, 2011 at 5:42am

Thom. Way to use this site for leverage. I've done that several times with BofA executives and received responses immediately. Short Sale Superstars is getting a very good reputation amongst the lenders.

Thom Colby said:

Jeff -

I think what you and the other agent did is admirable.  We have all done this at one time or another.  What bothers me is a conversation I had with a negotiator who basically said that "agents care so much about their clients, they are willing to give up their commission to get the deal done so we take advantage of that in our negotiations".  She was trying to pay 1% for both sides. 

 

I directed her to this website and suggested that her company could get "a reputation" taking that tactic.  We closed at 5%.

 

The back-story here is that we have to be careful just how much we are willing to "give-up for our clients" because this IS our livelihood.  I'm all for helping people in desperate situations and I contribute something from every transaction to a charity of my clients favor, but I think we may have already tipped our hand and will feel the repercussions for a long time.

 

With REDC now auctioning REOs and short sales after the were the negotiator on failed Short Sales, plus they have their own RE Brokerage "Red Crown Realty" along with Carrington Mortgage owning "Atlantic and Pacific Real Estate" and many other servicers doing the same, I think we are on a slippery slope.

 

Glad you got your closed !

 

Thom Colby

Broker

Newport Beach CA

Permalink Reply by Jim Hale on March 15, 2011 at 5:43am

It is my earnest opinion that what is really best for our clients is that there be real estate brokers out there representing their clients - and getting paid for it - paying their own bills (as opposed to those of their clients) - and standing their own losses - not the losses of second lenders who should have counted the risk before making the loan.

 

BofA representing Fanny will not pay more than 6% of the outstanding balance on a second.  Why should we?

 

In a foreclosure, the second gets nothing.  In a foreclosure, the selling agent is going to get a full commission.  If the short sale fails the selling agent can take the buyer to another property and still get paid.

 

If the seller was my parent, child or sibling, maybe I'd take that kind of hit for my client.  But then, if the seller was that closely related to me, the bank would not like the fact that I was representing them.

 

Permalink Reply by Bryant Tutas on March 15, 2011 at 5:44am

Jeff. Sometimes we just have to take one for the old Gipper. I've had several sellers just send me checks months after closing once they got settled and had some extra money. They want me to get paid my full commission and will do their best to make that happen even if they have to come out of pocket. But you were right to get the deal closed. Always close. That's been my motto for 18 years!!

Permalink Reply by Jeff Payne on March 15, 2011 at 5:47am

Thanks Bryant, My seller is not in a position to compensate me at this point but has told me that when he is able he will, of course I will make sure the buyers agent gets paid first.  I still feel like I did the best thing for my client, I would not be able to sleep at night if I had refused.  Just because the banks can't agree or have stupid guidelines does not make it OK for me to kill the deal over the cut in commission. My seller is happy and has already sent me a referral :)

Permalink Reply by Jeff Payne on March 15, 2011 at 5:51am

Not disagreeing with you here but have to ask. How does the selling agent getting a full commission in foreclosure?
Jim Hale said:

It is my earnest opinion that what is really best for our clients is that there be real estate brokers out there representing their clients - and getting paid for it - paying their own bills (as opposed to those of their clients) - and standing their own losses - not the losses of second lenders who should have counted the risk before making the loan.

 

BofA representing Fanny will not pay more than 6% of the outstanding balance on a second.  Why should we?

 

In a foreclosure, the second gets nothing.  In a foreclosure, the selling agent is going to get a full commission.  If the short sale fails the selling agent can take the buyer to another property and still get paid.

 

If the seller was my parent, child or sibling, maybe I'd take that kind of hit for my client.  But then, if the seller was that closely related to me, the bank would not like the fact that I was representing them.

 

Permalink Reply by Jim Hale on March 15, 2011 at 6:14am

Bryant, Dear Leader:

 

How can Thom (or others) "use this site to advantage" if we tell the world (including bankers reading these posts) that we "always close"?

 

Those two ideas are diametrically opposed.

 

 

Bryant Tutas said:

Jeff. Sometimes we just have to take one for the old Gipper. I've had several sellers just send me checks months after closing once they got settled and had some extra money. They want me to get paid my full commission and will do their best to make that happen even if they have to come out of pocket. But you were right to get the deal closed. Always close. That's been my motto for 18 years!!

Permalink Reply by Jim Hale on March 15, 2011 at 6:25am

I don't no how things work in your area.  And I certainly cannot (legally) tell you what I am going to negotiate as my commission on my next listing...short sale or otherwise.

But here in my MLS, I never know what the total commission on any listing might happen to be.  I cannot see or calculate  what the listing side commission on any listing is. 

But I can see on any listing any day the offered Selling Office Commission.  I can search for that parameter.  If I took time to do so today, it would tell me that, on average, the selling side commission being offered on REO's is very nearly the same as for any other type of listing.....including short sales.

Jeff Payne said:

Not disagreeing with you here but have to ask. How does the selling agent getting a full commission in foreclosure?
Jim Hale said:

It is my earnest opinion that what is really best for our clients is that there be real estate brokers out there representing their clients - and getting paid for it - paying their own bills (as opposed to those of their clients) - and standing their own losses - not the losses of second lenders who should have counted the risk before making the loan.

 

BofA representing Fanny will not pay more than 6% of the outstanding balance on a second.  Why should we?

 

In a foreclosure, the second gets nothing.  In a foreclosure, the selling agent is going to get a full commission.  If the short sale fails the selling agent can take the buyer to another property and still get paid.

 

If the seller was my parent, child or sibling, maybe I'd take that kind of hit for my client.  But then, if the seller was that closely related to me, the bank would not like the fact that I was representing them.

 

Permalink Reply by Jeff Payne on March 15, 2011 at 6:29am

Typical short sale and REO selling side advertised in our MLS is 2.5%.  We can not tell the total commission either.  Alot of the REOs and Short sales that we see here actually have a higher split to the listing side.  Many of the short sale listing agents are keeping 60% of the commission and offering 40% of the total.  Fannie Mae used to pay 3.5% to the buyers side but now we are seeing anywhere from 2.5 to 3 on average.  ***Of course commissions are completely negotiable and these numbers we are using are just numbers that are in MLS :)

Jim Hale said:

I don't no how things work in your area.  And I certainly cannot (legally) tell you what I am going to negotiate as my commission on my next listing...short sale or otherwise.

But here in my MLS, I never know what the total commission on any listing might happen to be.  I cannot see or calculate  what the listing side commission on any listing is. 

But I can see on any listing any day the offered Selling Office Commission.  I can search for that parameter.  If I took time to do so today, it would tell me that, on average, the selling side commission being offered on REO's is very nearly the same as for any other type of listing.....including short sales.

Jeff Payne said:

Not disagreeing with you here but have to ask. How does the selling agent getting a full commission in foreclosure?
Jim Hale said:

It is my earnest opinion that what is really best for our clients is that there be real estate brokers out there representing their clients - and getting paid for it - paying their own bills (as opposed to those of their clients) - and standing their own losses - not the losses of second lenders who should have counted the risk before making the loan.

 

BofA representing Fanny will not pay more than 6% of the outstanding balance on a second.  Why should we?

 

In a foreclosure, the second gets nothing.  In a foreclosure, the selling agent is going to get a full commission.  If the short sale fails the selling agent can take the buyer to another property and still get paid.

 

If the seller was my parent, child or sibling, maybe I'd take that kind of hit for my client.  But then, if the seller was that closely related to me, the bank would not like the fact that I was representing them.

 

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