How do commissions work on an investor short sale deal?

How do commissions work on an investor short sale deal?

Real Estate Investor · Murrieta, CA · Member since 2009 · 34 posts · 1 vote

Hello,

I'm a little confused on how commissions work on an investor purchase of a short sale. Ok here's the scenario:

1. Homeowner contacts me to negotiate a short sale.
2. I submit a PSA for the home and negotiate the short sale.
3. I then list with an agent to find an end buyer.
4. The property is closed via double closing (Not simultaneous).

What amount of realtor commissions are required paid by the investor? I'm assuming 6% for the second B-C transaction, because lenders generally pay realtor commissions on the short sale.

Does anyone have a sample deal they have completed that would show what they were required to pay in commission?

Thanks for the help!

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  • Phoenix, AZ · Member since 2009 · 12 posts · 0 votes
    16y

    Yeah, your B-C realtor will also be your A-B realtor making him/her about 9%.

  • Real Estate Investor · Murrieta, CA · Member since 2009 · 34 posts · 1 vote
    16y

    Ok so is the realtor making 3% as a buyer's agent on the A-B and then 3-6% on the B-C depending on if the end buyer is represented?

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