Listing Agreement For SS
I am in the process of doing a SS. The Seller had listed the property thro an agent for $116K and is still not able to sell the property. It has been listed for the past 90 days. I contacted the Seller thro my direct mailings.
Does it help my SS efforts (asking 83K to the bank, ARV = 115K) to let the bank know the seller tried to sell the house? If so, do I or the bank need to pay commission cost ? Do I need to indicate the commission cost in the preliminary HUD statement
that I submit to the bank ?
You didnt mention if this property was in foreclosure or not? If it is ...........
Not all short sales require a listing! If this particular property required one, this would indeed help you!
On your HUD you would show the lender paying the commission for the realtor.
If I were doing this deal and the homeowner wanted to work with me, I would call the bank and ask them what they required for a SS on this property. If they did not need a listing agreement, I would have the seller, request of the termination of the agreement. Or some listing agreements are for only 90 days anyway, so you would be in luck! If you get the agent out of the deal, you wont have to pay any commission.
Tell us more details about what is happening!
BAMZ
Sorry I did not make it clear earlier - The Seller is in Foreclosure and is willing to terminate the Listing agreement. The bank has made an initial counter offer of $110K. (Our offer about $83K, FMV $115k). In order to support our SS case, is it helpful to show the lisitng agreement to the Bank? And if we show the listing agreement, are we/Bank obligated to pay commissions ? (We just dont want 6K in commissions to be spent for no benefit).
If the bank doesnt require a listing agreement for the short sale, I would not reccomend that you show them the listing amount. What good would it do you to show them a listing of $116,000? There is a reason that the property is not selling, it is up to you to determine why, and present that information to the bank with a lower offer. Can you come up with lower comps for the area over the past 6 months? Does the house need repairs? How Much? Is it a tough neighborhood? This type of information is what you will need to get the price lower.
If there is a valid listing agreement on the property when it sells, someone is paying the commission, whether the banks pays it or you pay it, either way it affects the bottom line!
Did they already do a BPO on the property? How much was it for?
If the bank isnt flexible on their discount, it is because they beleive the property is worth more. You need to find out why they think that?
Once you have covered all of the information above, you can still counter the bank again, and then counter them again with your Firm and Final answer!
Best of Success!
BAMZ