Realtors Get Commissions on Short Sale
This is Yvonne Wesa with Short Sale Advocates LLC and today I want to share an answer to a question we get often.
About 85% of our Short Sale business is representing Realtors on both sides of the transaction. One of the questions that Realtors ask is concerning the commission allowance for a Short Sale.
Do Realtors Get Commissions on Short Sales
YES! The bank normally allows a 6% total commission on Short Sales.
It can be broken down a couple of ways, 3.3% on the listing side and 2.7% on the buyer’s side. Another option, it can be handled however the Listing Agent normally operates their structure.
There can be no additional fees or charges on the Listing.
If you have a home selling for $20000, the total amount of the Listing Commission is $660 at 3.3%. On the buyer’s agent side, they do have the option of charging the buyer a minimum fee because that contract does not need bank approval.
The bank ultimately approves that commission as an accepted part of the closing expenses on the approval letter.
By the way, you cannot be a Dual agent with a Short Sale.
If you are the listing agent, assign the Buyer to someone else. If you insist on being the Dual agent, the bank will only pay out 3% commission. We can always assign someone to your buyer as well.
If you have a client facing a Short Sale option, please feel free to call us for further information. We will be happy to answer your questions.
Yvonne Wesa, Founder, and Manager of Short Sale Advocates LLC
Yvonne Wesa is the co-founder of Short Sale Advocates LLC, a short sales negotiating company and she is a Remax/Results Broker Associate. Since 2001 she has helped more than 400 homeowners successfully close on short sale properties. Over 85% of their business is helping Real Estate Agents negotiate their short sales. That real estate agent remains the listing or buyer’s agent on behalf of sellers and buyers. You can learn more about Yvonne Wesa at www.shortsalespartners.com