I am a buyer, new to short sales, about to contract with a Negotiator to pave the way with the owner (borrower), lender, along with a listing agent.   Fee is $750 to get a signed agreement by the borrower to work with him, then $4000 on the back end once an offer has been accepted by the lender. 

Any thoughts on this process, as opposed to going straight to a listing agent?

Thanks.

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It's not as common, but not unheard of. We work with buyers many times as they want to be kept fully in the loop and have someone fighting to get them the property at the price they want.

The negotiator is charging you upfront? That typically isn't how 3rd party negotiators operate and I wouldn't recommend paying anyone upfront. Typically we are only paid if a transaction closes successfully. Also, what is the purchase price? If it's not a 400k property or larger you likely shouldn't be paying over $4,000. If it's a property worth more than that then $4,000 would be a reasonable fee.

I know our team charges 1% of the gross sales price only at the close of escrow and you get a full team assisting you.

Let me know if you have any questions and don't hesitate to reach out to me.

[email protected]

310-564-6389

www.ishortsalenow.com

Thank you for your info, Brett.  You have given me something to go back and negotiate that makes better sense! 

Yes, the property is over $400K.. probably in the $600's when done.  I've read conflicting info on this subject after a search on this site for 'negotiator' yielded info about not having to pay on the buyer's end.  Essentially, I am paying $750 to be the first to take a peak at the property and make an offer.  Assuming there is no other way around this. 


With the Negotiator's fees, and the Listing Agent's 6% max commission, are there any other fees I should expect? 

My main reason for hiring a Negotiator is my fear of an unknown listing agent stirring up competition on the property.  I don't want to lose it.

Typically negotiators fees are paid through commission, but at times the listing agent tries to push it off onto the buyer. If the listing agent wants to facilitate the transaction themselves and a buyer wants a negotiator then one way to incentive the listing agent to allow a negotiator to come on board is to offer to pay for the fee. Many times listing agents do not hire negotiators as they don't want to pay the fee.

The negotiators will need the sellers personal information, so the listing agent and seller have all the pull in allowing a negotiator to come on board.

You should expect to pay for closing costs that fall on your side on the Est. HUD. Escrow Fee, etc...

Thanks again.

To my knowledge.. there is not a listing agent yet.. early in the process.  Just hoping to get the borrower on board with a short sale option... then use a listing agent of our choice.

Thanks again for your info.

Not a true statement. I work for listing agents and their sellers. My job is to produce the best outcome for ALL parties. No deficiencies or prom notes for the seller, as well as closing help for the buyers and credits when damage is present in the home. Having transparency throughout the process is crucial. Also, buyers need to be educated on the process so they know what to expect.

Very uncommon to have the buyer call the shots in regards to the short sale (choosing negotiator and listing agent). The fees they are charging are ridiculous. My company does not make anything unless the short sale is approved. Also, we do not charge 1%, and only make what the bank approved to pay us. I would be very picky when selecting someone to facilitate the process, as with new investor guidelines added and bank changes, delays can happen if the person is not experienced.  

Thank you all for your input on a subject that is very new to me.  After reading your comments, I decided to write the following to the negotiator regarding the $4000 back end fee he was proposing:

"I have no problem paying the fee, I'm just uncomfortable that it is due prior to close.  I understand that you typically work for sellers, and that it is less than usual to have a buyer contract with you.  I just need to know you have my best interest in mind when working with the agent and the lender, and not the seller's interests so much.  I don't want to lose the house."

Here is the response I received...

'I'm sorry you are uncomfortable.  My recommendation is you find someone else to help you.  My responsibility goes to the seller in these situations as they place their trust in me to facilitate the best possible terms for their approval.  Ultimately – this would benefit you as I am working to have your offer accepted.  But if you are at all unsure of the arrangements,  that is fine. You should work with someone who better fits your needs.  If you need consultation during the process from me, I will provide that on a monthly retainer fee as I do with other consulting clients.  If you choose to work with someone else, I understand.  Good luck.'

So clearly I offended the negotiator.. however I was just looking for some reassurance in unchartered territory.  This person comes highly recommended, so I am still unsure of what to do.

Your thoughts??

Nancy,

      Are they an attorney? Are they already assisting the seller whose house you want to purchase? Unless there is a real incentive to use them you should likely look into using someone else.

Feel free to call me and I can try to point you in the right direction.

310-564-6389 - 888-559-5956

Negotiator is not an attorney.. but has a great reputation for getting the short sale closed and helping out the sellers... from which I benefit since I want the property.  My attorney, who I trust, has recommended this person. 

I am in the earliest stage of this process.  I don't even know if the seller will agree to a short sale.  That's what the $750 will be for... to get a signed authorization from seller for negotiator to work on seller's behalf.

Regarding the listing agent.. negotiator wanted me to interview and hire a listing agent... but I was more comfortable having the negotiator's recommendation of one.  Could be a mistake from what I'm reading here.

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