Bank Foreclosures and your commission...Are you being ripped off?

By
Real Estate Agent with Long & Foster Realtors - Smith Mountain Lake
As we all know, selling a foreclosure may be a great thing for your buyer but what about your commission?  In a recent closing, the asset companies changed on the day that I submitted my offer and not knowing, so did the commission.  FINE...this is what was best for my client.  But, I think it is time for us REALTORS to stand up the the banks and asset companies for our commissions. If every REALTOR the represents asset companies would hold these institutions accountable, just like every other client we have, we could maintain our commission rates.  These companies need to understand that it is a privilege to have their property in out MLS systems, not a right.  And for that privilege, there is a fee.  If you have every sold a foreclosure and the transaction was perfectly smooth, God bless you.  I would like your opinion...
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Rainmaker
80,560
Dennis Swartz
ABR, CRB, CRS, GRI...experience counts!
Rickert Property Management
Working with banks is terrible, but at least I am selling something to somebody.
May 08, 2008 05:35 AM
Rainer
164,544
Gary McAdams
GMAC Schwartz Property Sales
I agree.  These banks thank they are GOD.  Short sales are even worse.  I refuse to show a short sale.  The foreclosures aren't as bad but are tough too.  If a commission is offered at a certain rate it should be held to.
May 08, 2008 05:42 AM
Anonymous #3
Anonymous
Anonymous

WT,

Banks are slowly jumping into the Real Estate market.

This will occur more often than not!

May 08, 2008 05:42 AM
Rainer
41,833
Greg Hampton
North Georgia Mountain Property,Blue Rid
Re/Max Around The Mountains

We must hold firm in this battle , for we would beAny transaction we do at a bank they sure charge us for

their work! I am with you Brother and Sisters, We  better off dead than to lose it!

May 08, 2008 05:57 AM
Anonymous #5
Anonymous
Anonymous

Greg,

Dead than lose it?

A bit extreme no?

You don`t have to sell foreclosures if you`re not prepared for what the lenders will do.

In the end who really loses?

May 08, 2008 06:01 AM
Rainer
16,291
Donna Marie Godfrey
RE/MAX Achievers
I don't like the short sales.  They drag on, are very labor intensive and often don't work out.
May 08, 2008 06:03 AM
Rainer
339,851
Kris Wales
Real Estate Blog & Homes for Sale search site, Macomb County MI
Keller Williams Realty - Lakeside Market Center
I had that happen in February.  In my case though it was the listing agent who didn't pay attention, called me and said "Ooops" the day before closing.  I was a nice guy gal and didn't argue. 
May 08, 2008 06:21 AM
Rainer
320,761
Chip Jefferson
Gibbs Realty and Auction Company
We just simply dont do foreclosure and short sale. Its a time thing. I can sell 2 homes by the time I deal with the crap on one. Friends I will help in distress otherwise have at em guys. I dont want them! I wont get beat up on what I earn!
May 08, 2008 06:36 AM
Ambassador
526,551
Konnie McCarthy
Associate Broker - VA & MD
Realty Direct, LLC/Realty Direct, Inc.
I just got an email from FAS, stating they want 1/3 of the commission, if I get a listing from doing a bpo...thats rediculous
May 08, 2008 06:48 AM
Rainmaker
73,444
Julie Anne
Real Estate Team
Keller Williams

If you stand firm most banks will back down.  I have had some success.  Just say no or go higher at the beginning of the listing so you have some room.  We do work very hard on short sales.

May 08, 2008 06:59 AM
Rainmaker
134,225
Linda Lipscomb
731-695-1118, Lexington TN Homes
Linda Lipscomb RE/MAX Lexington Henderson County TN
Sorry,  lot of work for little money.  Simple, haven't seen anyone make money on these.  An agent in our MLS has sold 80 this year, but if you figure his time and rate on these he has made $3.00/hr.  Really, sell another 80.  You can have them all.
May 08, 2008 07:02 AM
Ambassador
1,807,328
Cindy Jones
Pentagon, Fort Belvoir & Quantico Real Estate News
Integrity Real Estate Group
If the MLS, which is a contract between brokers, states the commission is x% then unless your broker authorizes a different commission prior to settlement then you should be paid x%.  Our broker has advised us NOT to make an issue of this in front of a client. If we get to the settlement table and see a different amount than was listed in the MLS on the HUD-1 first take the other agent outside the room and point out the ERROR.  If they insist that is the commission then go ahead with the settlement and then file a complaint with your local board.  It doesn't matter if the bank shorted the deal to get their net, what is stated is the contract and our broker is going after other brokers for the commission.  So if you are a listing agent stand your ground.  So far I have not had an issue as either the listing agent or the selling agent in getting an expected commission.
May 08, 2008 07:41 AM
Rainer
183,632
Tina Merritt
Virginia Real Estate
Nest Realty

Cindy - you are so right.  First off, with short sales - I don't mess with them.  I hand them directly to an attorney who negotiates all of it.  She negotiates her fee with the bank too.  The banks seem to be much more cooperative working with an attorney as opposed to an agent.  I've always held my ground with my commission and never had an issue.

Tina in Virginia

May 08, 2008 08:55 AM
Anonymous
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Rainer
8,306

Walt Turner

ABR, SFR
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