What does "commission" mean and how is it subject to bank approval?

Asked by Peaches Pitts, Detroit, MI Fri Mar 2, 2012

Help the community by answering this question:

+ web reference
Web reference:

Answers

6
My NC Homes…, Agent, Chapel Hill, NC
Mon Apr 30, 2012
Commission is paid by the Seller to the listing agnets company and they share it with the Buyer's agent and their company. Typically it's shared equally though not always.

It is only "subject to bank approval" in the case of a short-sale.
0 votes
Joe Bertera, Agent, Plymouth, MI
Fri Mar 2, 2012
The commission is the money paid by the seller to the real estate agent or agents that represent the people buying and selling the house. The commission is subject to bank approval because the house is a short sale and the bank does not always approve full 6% commission which is the normal percentage. The commission has no bearing on the person buying the home.
Web Reference:  http://www.joebertera.com
0 votes
Eric Michael, Agent, Northville, MI
Fri Mar 2, 2012
In a "short sale" transaction, the bank is the one who ends up paying the real estate agents their commission, which are their fees for doing the transaction as a buyers agent and a listing agent. I'm guessing that you're referring to a "50/50" split comment or something similar, and sometimes the banks cut the amount they pay to the agents in order to recoup a little more of their losses.
Web Reference:  http://shortsaleinfomi.com
0 votes
Severin Faul…, Agent, Novi, MI
Fri Mar 2, 2012
The previous 2 answers are correct, nothing that concerns you, unless you signed a contract with an agent that guarantees them 3% commission. You may also want to check to make sure you are using an experienced agent that does not charge a transaction fee. For purchasing a home you have to decide if it is worth waiting for a short sale to be negotiated, usually 90-120 days, an experienced agent/negotiator might be able to shorten the timeframe to 60-90 days. Once the short sale is approved, then you can begin the mortgage process, which I have a lender that guarantees an 18 day guaranteed closing, which is awesome in this market.

I also have 2-3 properties coming on the market in Farmington hills in the next 2 months. Let me know what you are looking for, and I'll let you know if any of these properties fit your criteria. My office is local, next to Farmington Hills in Novi.

Let me know what other information you need.

Thanks!

Severin Faulhaber, ABR
Accredited Buyer Representative
Residential Home Sales Specialist
Remerica United Realty
(734) 891-7085
sellinseverin@gmail.com
0 votes
Karen Paytas, Agent, Clinton Twp, MI
Fri Mar 2, 2012
Hi Peaches,

Commission is the amount paid to the listing and selling office for the sale of the property. In a short sale the bank may lower the commission they are willing to pay. A short sale is when a homeowner is trying to sell the property for less than what they owe on it. The bank has to approve the sale, sale price and the fees they will pay in order for the sale to go through.

Good Luck,

Karen Paytas, GRI, CMS
Realtor
Real Living Kee Realty
586-709-8465
kpaytas@mirealsource.com
0 votes
Laura Feghali, Agent, Stamford, CT
Fri Mar 2, 2012
Hello Peaches,
The commission is referring to the amount that the seller will pay the buyer's firm who brings a qualified buyer to purchase the property. When it states "subject to bank approval" then that indicates that it is a short sale.
Short sales first require the seller's approval of the offer than the bank must approve it. The bank is the final decision maker on the property and determines the amount of commission paid to the buyers' agents' firm based on available funding.

Good luck to you!

Laura Feghali
Prudential Connecticut Realty
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more