Insist On Full Commissions From Banks
Kevin, Fred and the Coach are in the Dallas vicinity yet again today, just a few hours north of Coach’s favorite gridiron gang, the Texas Longhorns. Yesterday, the focus of the power hour was on commissions and how they should be dispersed amid agents during the short sale process. So, with today’s episode, we would like to move the focal point to commissions and the lenders.
When you get to the position where you are working with the bank in the short sale procedure, they may tell you that they only pay real estate professionals a five percent commission. Allow us to be extremely obvious on this matter. The lone thing that matters to the lender in a short sale transaction is savings over foreclosure. This means that they will lose additional money if the house is taken to foreclosure. This is key because the thought that a bank will not authorize more than 5% commission is ridiculous. As a bank, why wouldn’t you pay 6% commission if it means that you can close a short sale instead of going to foreclosure.
Chase is one particular bank that is infamous for not wanting to pay six percent. Nonetheless, if I am a lender. I would give 6% because i know that i am working with a real estate specialist that will get the job done in a timely manner. Waiting an extra thirty or 60 days from the bank point of view creates major issues. Just ask some piercing questions regarding loan loss reserves and you’ll understand why.
At the end of the day, we would like everyone to realize one thing. FHA, Freddie Mac, Fannie Mae, and VA all have publicly acknowledged that they give 6% commission. If you are wondering why you don’t receive your full commission, check out who the financier is. This will tell you who you are competing against to hold on to your commission. Rules are in place at the lender to help the bank make a decision. If you can show the lender that you are saving them money from foreclosure and you can still maintain 6%, you are the winner!
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