Discussion on commission

[Maryann L.]

I just read through a bunch of posts for short sales and commissions. It looks as if everyone does it different. I'd like to hear from seasoned investors doing short sales how they compensate the Realtors. We have a commission structure that 1/2 of the Realtors we've talked to seem to think is great and 1/2 think they are loosing out.

Right now we pay a total of 6% on the highest sale (less lender paid commission). So for instance...
AB
We purchase for 150,000 and bank pays 4% = $6,000
BC
We resell for $180,000 and pay 6% = $10,800 (less lender paid commissions) = we owe $4800 (10,800-6000)

The agents we've been working with all along think it's great because they wouldn't have had a second sale without us, plus we're doing all the work. So if we hadn't come along they'd be getting the 4% on 150,000 or whatever they sold the property for IF they sold it.
(oh this is if they handle all transactions) They decide what to co-broke.

So we've been trying to branch out which means we've run into a few new Realtors. When we present our listing agreement disclosures, I've had 2 agents complain about the structure....so I'd like to see how everyone else is handling it so that I can tweak our commission structure if necessary.