Group 4610 is in the Dallas vicinity at present. They are living the good life at Fairfield Inn. Today’s topic is the agent commission. Yet, the center of today’s talk is not about being paid the due commission from the bank, but rather defending your commission throughout the short sale practice. You have to earn your fair commission. This is something that a lot of new professionals miss out on. Some veteran brokers are also still figuring this out.
Early in their short sale experience, Kevin and Fred set themselves up to offer the buyer agent 3%. Nonetheless, they immediately realized that if they got into a commission disagreement with the lender and only received 5%, they had set themselves up to flop. Ultimately, Kevin and Fred would get 2% and the buyers agent would get 3%. And, Kevin and Fred did all of the work. In addition, with a second lien holder, they may have to surrender some of their commission to get the transaction completed.
The average commission that Kevin and Fred earned in 2009 was a tiny bit greater than 3%. That is correct, over 3 percent. They start by only offering the agent 2.5%. If the bank negotiates down to 5%, they still get 2.5% and the buyers agent gets 2.5%. And if everything goes smoothly, they obtain 3.5% commission. Can they accomplish that? Yep, they can.
When the listing agent is doing all of the work, there is no cause to feel bad taking 3.5%. REO agents merely offer 2.5%. Whatever you are advertising, you have to pay. However, if you market 2.5% and pay 2.5% you will not have any troubles.
The buyers agents generally appreciate that Kevin and Fred are always paying 2.5% and never differ from that. The commission is just one additional way to strengthen your business.
Get powered up by Kevin and Fred at Short Sale Power Hour by the Short Sale Specialists of Arizona
