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I have been getting Altisource/Ocwen listing over the last year that pay an $800 commission no matter what size, condition or location of the home. I know they are very handsoff and I kind of look at like a resume builder but even so after I pay my company a brokerage fee, my commission is only $400 even though they pay themselves and $3,500-$4,000 in referral fees.
What I'm wondering is whether or not anyone has had any experience when taking Altisource listings by crossing out the referral fees, reducing the referral fees, requesting a higher commission or requesting they pay a brokerage fee or submitting an expense report to have them pay the brokerage fee.
Look forward to hearing back from someone
I'm not sure why you are paid only $800, unless all your listings are $80,000 or under. I've had several the last year for Ocwen, most of the commissions range from $1900 to $2400.00.
They are pretty generous giving theirselves 2%, but all they require is putting the property on MLS. They handle the offers, closing, rehab, BPOs.
Thanks Mark, No actually, I just took a listing for $252,000 and the listing agreement says on the comissions page that they pay
$2,500 plus 1.5% of the purchase price, of which then a referral fee of 1.5% of the purchase price goes to their company REOM, which wipes out the 1.5% and then another $1,700 to RHSS, $2,500 - $1,700 only equals $800.
I've had 4 closings with them, all properties were under $100,000 but I'm reading the same language on the bigger listings. Not to mentiion, I have to pay my company $395 and so I only end up with $405.
Now I know they handle almost everything and it's mostly hands off, although I could do a much better job handling it myself, I'd still like to see what I could do to get those commissions up like you're getting. Did you make any modifications to the listing agreement or is that $1900-$2400 what they offered you up front?
You are paying your company TOO MUCH you should have a bigger split on these sales.
We get a minimum of 1%, and usually 1.5%. We have 5% to work with, Ocwen takes 1%, if we offer the Selling Agent 2.5% we end up with 1.5%. The property condition/location usually determines whether we offer 2.5 or 3% to the Selling Agent.
I quit working for Ocwen/Altisource when they got so greedy. I also quit working for brokers who take a large portion of my commissions about 12 years ago. I now pay less than $500 per month and keep 100%. But that's another topic. (The $500 covers MLS and some advertising). If you work the buyer side of their listings you won't get gouged. If you work with bulk investors who buy their listings direct, you can list what they buy. Find out what pays well and work with that. You won't have much luck reforming them.
I worked with them from 2004 through 2010 then they change to the one broker covering each entire state and then using outsourcing from India to handle their transaction and everything going through HUBZU and their title company Premier title in California. I did not even know they went back to using traditional agents. Is that what you are for them currently or everything going through HUBZU and you are just listing in the MLS?
Correct. I just list it in the MLS and everything goes through HUBZU.
How many listings did you get over the last year?
1 last year and 4 so far this year.
I did REO's for them a few years ago and they paid a min of 1500.00 then it went to a sliding scale depending on price of property,
THEN they realized there were agents and brokers who would work for peanuts (800.00) and I told them good by. Taking a REO for 800.00 is foolish but then again you know what your service is worth
I agree, the $800 is rediculous. The first 4 they sent me were crud in the hood like $30K & as we all hear you have to pay your dues, so I was like ok, but not for long. Then they finally sent me a $250K listing and I thought OK good it did pay off until I saw the commission was $800 and they pay the other $5,000 to themselves as referral fees.
I knew it was time to reach out to my peers to see what the heck was going on and I'm finding out that's the deal.
So do you have to do anything other than list it on the MLS for the $800????
I think in 2010 when they went to listing their own properties some of the MLS's started getting on them because they did not have a local broker doing the MLS listings so they had to reach out and find people that could put it on MLS for them since they are officially out of Orlando (although we know they are actually in another country). I used to get foreclosures all the time from them that I would have to go secure the property and hire people to do the work and then list it. Then they went to having their own company do the secure, trashout, etc. and I would just get the listing and then that stopped too and they went to listing themselves.