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I am trying to buy a short sale. The listing agent fees or commisions?

the listing agent has in his contact that the buyer pay the listing agent an additional brokerage compensation fee of $1,500 at the close of escrow.  Is thie illegal and a normal practice?
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September 03 2011 - Spring Valley
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In my opinion this is an excessive fee. I'm a Las Vegas REALTOR and I've run into this with several agents with a particular company. If the Listing Agent is the agent you're trying to buy the home though and he/she hasn't already shown you the home, then you're welcome to use a different REALTOR as your Buyer's Agent. The Buyer's Agent is paid to represent you by the Listing Agent and the seller's commission fees. Feel free to contact me to discuss this more.

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September 03 2011
I believe it is at the very least, it's a violation of the GLVAR MLS policy.  You can contact the local association of Realtors at (702) 784-5000 for more info if there was a violation of MLS policy.  Visit the Nevada real estate division's website at http://red.state.nv.us/ for more information or if you believe there was a violation of the law.
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September 03 2011
They can ask, but it does not mean you have to give it to them.  Cross it out of any contract provided.  The agent gets paid out of the proceeds of the transaction, if they are charging a Short-Sale Negotiation fee, it should be paid by the seller.

If it's a really great deal, you may want to consider the plus/minus of arguing.  Is $1500 really going to be a problem if you are saving "example $20,000?"

Your agent should be guiding you.

Craig Fialkowski
Realty Elite
Wellington Florida
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September 03 2011
I have seen this in the Tampa Bay, FL area where are work. This extra money though is not for the Listing Agent or their Broker, it goes to pay the fee of the short sale negotiator.  A lot of the short sale banks are refusing to pay this fee, the Seller obviously does not the money, so they ask the Buyer to cover it as part of the deal.
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September 04 2011
It is not uncommon in this market for the buyers to be helping with some of the cost to cover the transaction. Especially if there is little equity.

First it depends on the price of the property as most agents today need to make sure that they can cover their fees and time invested.

If the unit you are buying is over $100K and additional fees are asking to be covered I would ask for a written break down.
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September 24 2011
most times on a short sale, that fee the negoitator fee, not additional commissins
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September 24 2011
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That "fee" varies from area to area, but is not really a set or "customary" amount. 
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September 24 2011
 
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I am trying to buy a short sale. The listing agent fees or commisions?
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Latest reply by sunnyview
September 24 2011 | 7 answers
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