How many short sales are you closing a month?
I was just wondering for all the heavy hitters out there. I am trying to gauge myself on how many short sales I should be closing monthly. I currently have a pipeline of around 50. Right now i am closing about 5 a month?
Replies to This Discussion
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Permalink Reply by Kevin - Greenville, SC on
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I have around 30 total listings active and contingent and closing around 3 to 4 per month is getting to be the norm.
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Permalink Reply by Janis Schade on
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Are you negotiating your own deals, or working with a third party? My third party is now asking for $3,000 or 1% which every is more. Feel like I'm getting robbed.
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Wow Janis,
Where are you located? If you are in Indiana I would love to help. I am a third party negotiator and charge about 1% but never get it, the lender always negotiates it down. And is that fee coming from your commissions or from the sellers? If so, you are getting robbed. The lender pays my fee no one else does.
Kristin
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Permalink Reply by Jeff Payne on
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Janis, I handle my own short sales but there are many who use 3rd parties on this site with great success. Where does the fee come from on your short sales? Buyer, seller or agents?
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The negotiators I use have great succes, but they have changed their business model as the climate changes. In the past, they were able to get paid by the bank. Now they are requesting the fees come straight out of the commissions. Usually mine, Lising Agent!
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I know that it hard to get paid as a third party negotiator but I have never had to ask for my fee to come out of the commission nor do I ask the seller or buyer to pay. The lenders always pay our fee.
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Permalink Reply by Donna McClelland on
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Hi Kristin,
That's great that you can get the lenders to pay you - is it because you work for a title company - - because I haven't been able to get paid by a lender for a long time. That's why I have to charge the agents (and they are happy to pay it because if we charged the sellers, they wouldn't get the listing).
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Yes, I believe that is how they allow our fee. And in the event that they reduce it a lot, we are still doing the closing therefore it still benefits us.
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I am able to get paid as a 3rd party negotiator by having the buyers sign a fee agreement upfront. They are ultimately responsible for the fee and it will be on their side of the HUD, but I am able to get the mortgage companies to pay a settlement fee, the title insurance (a normal buyer's cost in PA), and 2% transfer tax (buyer's normally pay 1% and sellers pay 1%). This normally offsets my fee and sometimes gives the buyer a little more off their closing costs. I have talked to other 3rd party negotiators who ask for seller assist equal to their fee and have the buyers sign an agreement that the seller assist will pay them. I have NEVER asked the real estate agent to pay me out of their commission. I have also never had a buyer refuse to sign the fee agreement. I charge 2% or $2500 minimum. Don't discount the work 3rd party negotiators do. We sometimes have contacts and phone numbers we can use that are not available to even real estate agents. We also spend many hours on the phone every day, somethings agents just don't have time for. Hope this helps others. BTW I own my own company and am not affiliated with a title company or attorneys office.
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Janis, that is really just a simple business decision. If you can do them yourself you can save the fees but if you are having good success with the third party, I see no problem with them getting part of your commission. There are other ways to get the fee paid, you could charge the buyer.
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Hi Janis,
I am a licensed loan originator and real estate broker and do 3rd party negotiations in CA and AZ. I charge agents 20% of their total gross commission for one loan, and 25% for a total of two loans. I feel this is quite fair (and so do they). Usually they reduce the buyer's agent's commission on the MLS to 2.5% to help make up for their paying my fee. If you are in CA or AZ and would like to discuss using my services, check out my page here on SSS and shoot me an email or call me at 760.807.1981. Thanks!
Donna McClelland
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On a team of 3, we closed 15 to 20 a month.
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