So no matter what the commission is, it is based off of the selling price but since it is a short sale, there may be a variance in the amount of commission due to adjustments that the investor/lender may require but that, again is not your worry.
If the agent is the listing agent, they will not receive the full commission from the banks for working both sides of the deal.
My biggest concern is what your Realtor is going to be paid for his/her time and expenses at it takes a lot to time to get these files approved. At the end of the day, I have heard agents receiving only $250 after a deal was done and that doesn't pay anything but the gas bill.
Respect your Realtor and talk to your Realtor. I have concerns when you are reaching out on the internet and not discussing this directly.
Buying real estate is a long term commitment (usually) and the a Good Realtor has alot of experience and time invested and it just isn't about selling homes. It's taking classes, continuing education, webinars, more classes, etc. I, myself, take roughly 4 hours a week in education (either webinars or classes). That's a lot of time but in order to keep up with things, we need to do this. Respect your Realtor and they will guide you.
Bottom is, the relationship is between the Realtor and Redfin when it comes to money.
Barb Van Stensel
Keller Williams Lincoln Square
2156 W. Montrose
Chicago, IL 60618
Also, by Illinois law â€“ Illinois is a â€œBuyer Agencyâ€ state and that means that an agent â€œrepresentingâ€ a Buyer legally has a list of responsibilities to that buyer â€“ usually summarized by: Obedience, Loyalty, Disclosure, Confidentiality, Accountability and Reasonable Care. Depending on what states or countries that someone comes from, the laws related to Buyer agency can be very different. Basically, in Illinois, itâ€™s almost crazy not to have an agent representing you on the buy side of a transaction â€“ if for nothing else than to make sure all the paperwork is correct and that you are not overlooking anything â€“ because it really doesnâ€™t cost you anything.
But call around and talk to a couple of agents and find someone that will meet your needs and that you feel comfortable dealing with.
Dream Town Realty
If you want quality representation in a transaction with a skilled agent giving it -- that is to say, you want an agent that is watching your back and not just their commission check -- it might be worth paying a little something extra for that -- or not!
But the point is, a Buyer's broker/agent can negotiate commissions with a buyer. Also, I am neither endorsing nor not recommending any specific broker/agent. As a buyer, you should do your own homework and talk to a number of buyer's broker/agents before you select one and make sure that they will be representing YOUR best interests.
Dream Town Realty
Koenig & Strey Real Living
Usually a buyers agent services are free to you the buyer, regardless if it's a short sale or not. Agents must disclose, disclose, disclose....UP FRONT.
Once the MLS states what the coop agreement is to the coop brokerage it's a done deal. You shouldn't have to concern yourself with your buyers agent compensation, unless, your agent told you upfront what your options are in the instance they get short changed.
Hope this helps and good luck!
I always tell my clients that they should work with a buyer's agent. I am, however, unfamiliar with Redfin agents and their own in-house rules. I do know, however, some agents who will have their clients sign something called a Buyer/Broker agreement, which means that under some circumstances, the BUYER COULD PAY for their services.
On the one hand, I believe that buyer's agents earn every penny in their commission, and you'd have to have rocks in your head not to use one. On the other, I've had it happen where my client had to make up the difference out of their own pocket.
I would take the advice of the realtors below, who tell you to interview several agents and ask the question as to whether or not you'd need to pay anything to the buyer's agent.
MOST (but not all) will tell you "No."
Happy House Hunting (call me if you need a loan)
Senior Mortgage Consultant
And always make sure the people are licensed agents and ask if they have any ownership in the property. You need to be sure you have your own agent and your own representation.
You can verify by going on the website http://www.idfpr.com and looking up licensing. I would definately ask more questions before you sign anything and make sure you understand everything. And consider getting an attorney to protect your interests.
And definately understand all about short sales. The bank is in control and it is true - anything goes. Keep your options open and keep looking - just in case.
Use any agent you think is fit for you. Not all discount brokers are good, and sometimes the buck you save, you lose in the negotiation room. Regardless, use who you feel is knowledgable and who suits your needs. Interview two or three agents, and go with the one you mesh best with. I would be happy to help.
Americorp Real Estate
Managing Broker/Partner, e-PRO
1. Seller pays all compensation at what ever the seller and listing agent negotiated
2. The agent representing you will be paid by the seller
3. Although the seller is the one who negotiated the compensation with the listing agent, it is the 3rd party approvals that actually determine the compensation.(bank/investor/management/insurance)
Since short sales is the wild wild west of real estate, rules are just an illusion. The banks and other parties will try to do anything because, for the most part, they can get away with it.
4. The 3rd party approvals can impose the compensation they want. What if they decide the agents should split a total 2% compensation? Each agent effectively receives 1%. It is unknown what the 3rd parties will do but we do know what they can do.
Doing the math you will discover the compensation is woefully inadequate to cover your real estate agents expenses and time after spiting the compensation, as required, with their broker.
What is the real estate agent to do? They had an agreement in place when your offer was submitted, but that agreement was changed by an outside party. What if the bank said split 1%? You see the delima.
Knowing the work involved in a short sale, such work I am sure you are aware of, how should this situation be resolved? As you have read, many companies anticipate this situation and pass the compensation fee to the buyer. As you also observed, when doing so, the % of compensation becomes very distorted.
How do you suggest this be resolved?
I am a Broker Realtor in the Chicagoland area and I specialize in first time home buyers. I do not collect any commision from the buyer. It is all paid by the seller. You as the buyer will not pay me a dime for my work to help you find the right property.
You should know that if you did see the property with another agent you may be bound to work with that agent on said property. Feel free to call me or drop me an email to discuss your situation.
Senior Loan Originator
Midwest Equity Mortgage
You may be misunderstanding how the commission is being paid. Just ask the agent, are you being charged a commission. If there are costs to be paid by the buyer you may and may not be able to negotiate the cost down. Even if you decide on another agent to represent you this still may not change the amount the agent is being paid. Regardless of the costs, ask yourself is this a value to you. Regardless of who buys the condo there are commissions, costs, fees already established. Some are to be paid by the seller and some by the buyer. Do your numbers and ask yourself is this a good deal for you. Do not focus on what the agent is being paid?
Commissions are negotiable and usually paid by the seller to the buyer's agent firm. You shouldn't have to make up any difference as you should negotiate the commission due with your agent if the seller's firm is offering less than what your agent's company is requesting.
Did you sign an agreement with your agent regarding what your responsibility is towards the commission fee? If so, check what it says and discuss it with your agent.
Prudential Connecticut Realty