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Permalink Reply by Smitty on May 15, 2011 at 12:53pm

It depends.  Lawyers can charge the seller or buyer (assuming they meet FTC rules).  I've seen lenders charge the seller or buyer like AHMSI with their 1% fee.  I think charging the buyer is the safest as most often the seller doesn't have it.  I'm pretty sure fannie and freddie will not allow the buyer to pay a negotiation fee and roll it into the loan, so realistically the payment should be in cash and not financed.  So the BEST way to get paid is have a contract for all parties to sign and have the payment in cash form at the delivery of the deed.

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Permalink Reply by Thom Colby CA Brkr 888-391-5245 on May 16, 2011 at 4:21am

Alan,

 

This is purely my opinion.....  I do a lot of 3rd party negotiations and at the onset of the relationship with the Listing Agent / Broker I spell it out in writing along with providing the appropriate 3rd party disclosures required here in CA. 

 

MY Opinion is that the 3rd party negotiator fee is paid by the Listing Agent / Broker from the Listing-side commission.  My belief is that when the agent / broker signed the Listing Agreement on a short sale, they also took the responsibility of negotiating that short sale.  If they can't, won't, don't know how, or are just too busy, and choose to use a negotiator, that's a choice they made and therefore they should pay for it.

 

It has always worked well for me and my agent / broker clients and enjoy success together.

 

Thom Colby

Broker

Newport Beach CA

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Permalink Reply by Jeff Payne on May 16, 2011 at 4:36am

Thom, again I agree with you 100%.  I believe that it is the listing agents responsibility and if they do not want to pay the fee, they should not take the listing, period!

Thom Colby Newport Beach CA said:

Alan,

 

This is purely my opinion.....  I do a lot of 3rd party negotiations and at the onset of the relationship with the Listing Agent / Broker I spell it out in writing along with providing the appropriate 3rd party disclosures required here in CA. 

 

MY Opinion is that the 3rd party negotiator fee is paid by the Listing Agent / Broker from the Listing-side commission.  My belief is that when the agent / broker signed the Listing Agreement on a short sale, they also took the responsibility of negotiating that short sale.  If they can't, won't, don't know how, or are just too busy, and choose to use a negotiator, that's a choice they made and therefore they should pay for it.

 

It has always worked well for me and my agent / broker clients and enjoy success together.

 

Thom Colby

Broker

Newport Beach CA

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Permalink Reply by Smitty on May 16, 2011 at 9:50am

The question was what is the best way for a 3rd party negotiatior to get PAID!  The best way to get paid is by having the buyer pay the negotiation fee. 

 

Lenders are starting to deny paying out 3rd party fees (Oh they are happy to charge them, but not pay them)

Also, may of the referrals I've gotten are from old timer agents who don't know how to negotiate, but they do have a relationship with the seller and can market the property list and sell it.  It's what they are used to.  They love the fact they can keep their commission in tact.  Agents are working THREE times as hard these days for less and less money so when I can tell them they don't have to share their commission with me, they are thrilled.  They aren't giving up a listing, and they are making the highest amount of commission I can get them.

 

You need to have CLEAR disclosures in the listing that the buyer is responsible for the fee and what that amount is.  You should have contracts in place that the buyer and seller sign along with the listing agent and listing agent's broker, so everyone is aware.  The fee gets placed clearly on the HUD.  This fee MUST be paid in cash and cannot be financed. 

 

This is the easiest and best way to get PAID.

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