Some times after sending our clients their short sale listing agreement, they will finish reading it and ask…”I want to make sure I’m reading this right. I don’t have to pay the real estate commission?” The truth is, the bank pays the commission. And of there are attorney’s involved, the bank pays them too. In rare cases that they won’t we try to work things out after the fact. Here is my recent response to a client:

Thanks for writing. Everything you sign is ‘subject to third party approval’ meaning that the bank has to agree to pay us realtors, you don’t have to. We always ask them for 6% and they sometimes reduce our commission, but we take whatever they give us. Just like you wouldn’t sell your house for 315K unless the bank agrees to the short payoffs (which is the subject to third party approval), you aren’t agreeing to a commission unless the bank agrees to pay it and they always do in short sale.
Same with the attorneys fees-they strive to get 2%, or at least 3K from the bank because they are our partners in negotiating but if the bank doesn’t pay them then you aren’t obligated to pay them. We usually can offer them some of our commission but in the rare case that they aren’t paid anything by the bank and our commissions are already really cut, then they may have a conversation with you about paying them 1-2K over a few months in a payment plan after the closing to make up for hours worked. This is rare and we always strive to have you ‘zeroed out’ at closing.

More questions about the short sale process? Call Jennifer at (703) 774-9572.