And people wonder why banks have a bad name!
Bernard Gibbons, J. Rockcliff Realtors
DRE License # 01331583
Phone (925) 997-1585 - firstname.lastname@example.org
The bank will naturally want to minimize their selling expenses and maximize the sales price.
First we try to get the right buyer who stands the best chance of getting his offer accepted. All else will come into place when the short sale process is underway once an offer is accepted by the seller and submitted to the bank.
The negotiators and investors will look at many other factors:
Offer price --- low ball? Within range of market value?
Are there any back taxes and insurance?
Any junior liens? Who else does the bank need to pay off
Condition of the property ----- if there are any safety/hazard issues that will affect getting a loan on the property
Terms and conditions such as requests for repairs or credits from the buyers
Length of escrow period and contingency periods --- the shorter, the better
The agent's sales commission is one of many deciding factors and certainly not THE deal-breaker.
By the way, in a short sale, all terms, conditions, price and agencie commissions are subject to lender approval. Furthermore, any reduction in commissions are generally split 50-50 between the agencies (who then split it further with their respective agents for a 4-way split altogether). So please look at other means to make your offer stronger than merely asking the agents to reduce their commissions.
Short sales can be extremely time consuming and difficult and often agents get paid a pretty nominal amount compared to the amount of time, effort and negotiating skills needed to successfully navigate a short sale. There are many factors involved in successfully negotiating a short sale, and commission is only one part of it. Which bank(s) are involved, what are the terms of the contract that is accepted, how short is the seller, where there multiple offers, and other factors are looked at.
It might be good to find an agent that is familiar with the short sale process and has had success in getting all the information regarding the nature of the short sale to see how best to position an offer. You are hiring a Realtor for their professional knowledge and skills.
Keep in mind short sales can be a frustrating and often sticky situation. The nuances of a short sale change with every property, so having someone to advocate for you to the fullest extent of their abilities is extremely important. Potentially short changing their paycheck (and their livelihood) does not always best serve you.
Hope this helps!
Alain Pinel Realtors
Your realtor works hard without pay until your deal closes. For the best deal, the best way is to make sure that you have a seasoned realtor who knows how to negotiate the best deal for you.
I wouldn't recommend asking for it unless it is already offered as part of the agentâ€™s standard practice. Short sales are often twice the work for less pay already. While some investors don't cut commissions, others do. If your short sale is successful your agent will have been waiting two to three times as long to get paid while still having to manage the details of your transaction.
However, final commissions in a short sale are ultimately decided by the lender approving the short sale.