Newbie Agent Looking for Help re: commission


#1

I have read in a couple different places that if I, the real estate agent, register my client at the auction I’m due a commission if he/she wins the auction. Is this true? Any other leg work need to be done? I’m thinking it depends on the property being auctioned, but I’d appreciate any input anyone has from their experiences as agents.


#2

The type of “auction” you’re most likely referring to is not a true “trustee sale” (which is most commonly done at the courthouse steps) but rather the “sham” auctions that are often the final means for lenders to sell their REO properties. I use the word “sham” as many of these auctions are in my opinion “deceptive” … they advertise a stupid low opening bid on properties and quite often the giddy winner of the bidding leans a few days later that the sale won’t go through as there was a special reserve (minimum) price that’s well above the winning (oops… not) bid and “if you still want this screaming deal” you’ll have to pony up substantially more $$$ (surprise!). There are also handsome fees paid to the auction company. These auction houses disclose everything in the “fine print,” but you may need to take a hot shower after attending these auctions to wash away the slime. Not to say that you can’t get a deal at these REO “auction” sales, but read the fine print carefully.


#3

Hi Pat, Danny B is right and the auction you are referring to is an auction where banks attempt to sell their properties through an auction format. I laughed when I read Danny B’s take on this because that is true in many cases. That said, I do know people that have successfully purchased properties at these auctions and I know realtors that have been paid a commission. If you are the successful bidder at one of these auctions you will know before you leave if your bid has hit the reserve amount set by the bank. You can also choose to walk away at that time. This is why you will see the same property come back up for sale on the same day.