Carla Smith

Thought this might be helpful to those of you who are representing buyers in the foreclosure market.

Don't be fooled by commission % listed in mls information. Be very careful when negotiating contracts with the various asset management companies. Carefully read the fine print in their lenghty addendums especially with respect to how they will pay commission.

I found out at the closing table that the seller of an REO property refused to approve the HUD as they decided to only pay commission on the NET SALES PRICE, after all seller concessions are deducted. For me, it was a significant difference. These sellers are deducting closing costs as well as repairs they agree to do. In my case, we added the closing costs to the sales price, but that didn't make a difference to the seller.

As we all know, we work very hard to earn a living, and our commissions are constantly being compromised.

Now more than ever, as our transactions include more and more REO properties, we have to be aware of the ever increasing pitfalls. Good Luck!