Short sale commission too high?

5 Replies

I'm looking to buy a short sale and wanted the realtor from Keller Williams to cut the commission to 4.5% as a transactional broker. Also the listing agent is taking the 3.5% and leaving 2.5% of the 6% commission he is citing that they use a third party short sale negotiator. Should I just bring my own agent? Is the additional fee justified or a squeeze on the seller? Thanks

And how do you know what the commissions are to begin with? That is not public information 

Russell Brazil, Real Estate Agent in Maryland (#648402), Virginia (#0225219736), District of Columbia (#SP98375353), and Massachusetts (#9​0​5​2​3​4​6)
(301) 893-4635

@Clifton Coffman , the answer SHOULD be simple: Work out what YOU are willing to pay for the property, and then make sure that your offer states - INCLUSIVE of all commissions/fees. Therefore, all fees get deducted from that pool.

Then, let THEM fight it out. Welcome to BP. My 2c...

Originally posted by @Clifton Coffman :

I'm looking to buy a short sale and wanted the realtor from Keller Williams to cut the commission to 4.5% as a transactional broker. Also the listing agent is taking the 3.5% and leaving 2.5% of the 6% commission he is citing that they use a third party short sale negotiator. Should I just bring my own agent? Is the additional fee justified or a squeeze on the seller? Thanks

The realtor's commission really isn't your concern - what you're paying for the house is. Pick a number that works for you and stick to it. Based on my experience, most banks will stipulate what the approved commission is for the transaction and will likely also state that neither you nor the seller can receive any of it. Additionally, many times the third party negotiators also have flat fees that are charged. Make sure you stipulate who pays it, if it exists.

-Christopher

Christopher Brainard, Real Estate Agent in NV (#177490)

They will not likely cut their commission for you.  It's the bank that is eating the commission, not the seller.  I never cut a commission on a short sale.  Bring your own agent, one experienced in short sales.

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