The reason agents are requesting the buyers to pay part of the commission is because the banks/mortgage companies cut the commissions way down, and it takes so long to get to closing!
A good short sale agent, will get the fees covered by the bank. As a Massachusetts Short Sale Agent, I have never had my commission rejected by the bank. Sometimes I have to take a reduced commission, but that goes with the territory,
Always to Lender. That's it. Your are turning the house over to the bank and they in turn are choosing
to let you sell and move on with your life. The entire short sale process is FREE to the homeowner.
Best wishes to you!
When a seller is approved for a short sale. .he pays zero.
The Mortgage Holder has to agree to pay any fees associated with the sale of the property.
Fernando Herboso & Associates
Short Sales for Maryland DC and Virginia
You will be best served by engaging the most competent local real-estate professional who specializes in the particular geographic area of the short sale you are pursuing. A good agent will identify and secure their commission in the purchase agreement. The Buyer's agent usually has the advantage if they are experienced and is familiar with the market and REO guidelines. The Seller's agent typically is selling in volume with a 1.5% or so commission and desires to close easy clean transactions with well capitalized Buyers and very little due dilligence. If your agent isn't on top of their game, you should seek out an agent who knows the market, area, and appropriate REO proceedures if you expect to take advantage of the available deals. The Buyer is not usually required to pay the commission.
If you have any further questions, please feel free to contact us directly:
Musikantow & Associates, LLC
Keller Williams Beverly Hills
439 N. Canon Drive Suite 300
Beverly Hills, California 90210
Russ Lyon Realty Scottsdale
7150 East Lincoln Drive
Scottsdale, Arizona 85253
The commissions are factored in with the closing costs. The seller or the lender approving the short sale pay the commission and of course that dollar amount is usually negotiated at the time of approval.
The above is typical, but all transactions are negotiated individually and policies may vary by bank. Overall, banks want properties listed by Realtors before accepting a short sale, since that process provides an oppty for the highest price. A private sale, with a property that was not lsited will raise the question to a lender if the selling price is or is not reflective of what the open market could or woujld bring. Realtors bring the open market to the banks, credibility to the sale and therefore are deemed a necessary component in the short sale process.