Can agents make money on a short sale?

I agree with Vegas - short sales are very time consuming, and the lender has to approve the commission - if they are taking less, most often they expect you to as well - yes, an agent absolutely can make money and can save the homeowner a lot of grief! Add to that that most real estate agents are not educated as to how they actually work since they just started to be a major part of the market. Some don't know how to get that information and he may be trying to save face or just doesn't want to deal with the long drawn out process. The fact that some of them are distressed and not pretty sometimes turns some agents off as well - I have had a couple, and I love doing them!!!

Yes they can. The only problem is the lender has to approve the sale, which includes the commission. It sounds like your agent has not dealt with very many short sales and therefore is weary about the process. Short sales, like foreclosures, must be looked at with caution as you never know the actual condition of the property.