As Antonio says, the commission maybe the reason Realtors dislike short sales.
I think the big dislike is waiting month after month for the Bank to answer a phone call, return an email.
A close second is when they "misplace the contract"
Short Sales Suck.
Make it a great day.
I don't recommend doing any short sales AND I DON'T RECOMMEND WORKING WITH CHASE HOME LOAN OR WELLS FARGO! My current short sale involves both as the lender (Wells Fargo) and servicer (Chase). I had to deal with Chase the whole time.
I had this listing for almost one year. We were in escrow at a much higher price last Oct but Chase took so long that the buyers walked. I finally got a second buyer where I'm both the listing and selling agent. The short sale specialist "John S" in San Diego said he will only pay me 3% for both sides. I said no. Then he and his supervisor Danny Porter told me they would approve the sale and accept the price and I assumed the terms of the estimated HUD 1 which they got with the package. But at the last moment they played it very dirty! Their verbal meant NOTHING! When I finally got their written 'approval' they said they would accept a certain net dollar figure . I immediately calculated it and sure enough, it was enough to cover closing costs and 3% commission- for both sides and a year of work. Ugh!!! Plus they were generally insulting to agents. "John" was awful. He kept telling me "no, I will not look at your comps. Brokers never tell the truth they are only out for themselves..."
I even went up the latter to Porter's manager and got no where and now I have escalated it to the exective complaint department but think I'll get nowere.
Remember, on 4/9/009 Fannie Mae came out with a mandate that banks should not ignore or violate the listing agreement amount of commission.
DON'T TRUST CHASE IN SHORT SALES! Earn your commissions elsewhere!!
That is very nice of you.
You don`t have to do any of that.
If you sign a Buyer Broker with your Buyers agent saying you will pay 3%
If the seller only pays 2% you have to make up the 1%.
The seller will not know about your Buyer Broker. If the bank knows you are willing to pay the whole 3%...well that is just money that they can save. They will take advantage of your generosity.
My advice to you is, keep the deal the way it is, do not offer to pay any commission, wait and see who gets paid what.
If you want to give your buyers agent a bonus after the deals done, that's your business. If it`s cash you will have to go through their broker.
Good Luck you already know how I feel about Short Sales.
Could I have a separate contract just with my buyer agent regarding covering her commission should the transaction goes through? I do not want to share this info with sellers. For purchasing contract, I would mention the buyers will provide commission to their agent separately and the seller do not provide this commission. I would not want to put anything about seller commission since I feel the seller and lender should negotiate or figure this out among them (possibly their attachment).
What are your inputs / advices?
One of the reasons why so many agents dislike short sales is because the bank determines the commission, often based on selling price. In other words, If an agent does really good work at finding you a great offer... pretty much they are causing a smaller commission for themselves. Its a catchy situation.
Find a good agent and negotiate the commission upfront. You providing a few thousand dollars in comminssion may bring you 2 or 3 times that amount in savings.