Worried about your commission in a short-sale?
Last Friday I had the good fortune of attending a class at the Charlottesville Area Association of REALTORS® (CAAR) on short sales. Yes, I know that doesn't sound like a treat. What made it one is that the class was conducted by Lawrence E. "Lem" Marshall*.
Having survived this market with only one short-sale transaction and no foreclosures I thought I was skating on thin ice. There is no telling how long my luck would hold out and felt it imperative that I learned as much as possible about this "new" type of real estate.
Even the one short-sale I had did not start out that way. It took tough negotiations to get it where the seller was going to come up short at the settlement table so I cannot really take credit for walking into this transaction with my eyes wide open.
The reason I mentioned the fact that we (buyers and me, their agent) helped create the short-sale is so that you will know that you may be party to doing the same thing if you have not done so already.
Now, about short-sales. Rumor has it that there are times lenders do not really want to pay the commission that has been agreed to by the seller and the listing agent. This may not become apparent until the bitter end. Well, Lem advised us that the end does not have to be bitter. Instead make sure it is as sweet as ever
Should the thought enter anyone's mind that you will accept less than is shown in your MLS listing simply refuse to accept it.
Refuse! Refuse! Refuse!
Do not blink. Whether you are the listing or the selling agent, simply stand firm. Do not budge. What will the lender do? The chances are very, very good that having come this far, having completed all of the work to get the transaction to this point, the lender is not going to really walk away from the table.
Lem suggested that you ask the lender if the home inspector was asked to give up some of their pay, was the settlement attorney asked to take less than usual, was the buyer able to pay less for the title insurance to cover the mortgage company's coverage, is the county going to accept a reduced tax payment?
Chances are slim to none that any of that is going to happen so why should you, the REALTOR®, be the one to take the hit?
Don't Blink! Let them.
*For those who do not know Lem Marshall, here is a brief intro. He is a graduate of The College of William and Mary Law School and is the Virginia Association of REALTORS® (VAR) Special Counsel. Lem is definitely the go to person for any and all legal questions dealing with real estate. We, in Virgina, are extremely fortunate to have Lem working on our behalf.
If you or someone you know is thinking of buying or selling property at or near Lake Anna, Virginia please contact Kathleen "Kate" Elim, REALTOR®.
Kate lives at Lake Anna, knows Lake Anna, loves Lake Anna, and specializes in Lake Anna area real estate.
Copyright © 2008 By Kathleen "Kate" Elim, All Rights Reserved. *Looking a Short-Sale in the Eye? Don't Blink!*.