Should I pay the negotiator fee?
Replies to This Discussion
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Permalink Reply by Smitty on
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Well it IS towards your final cost. Nothing here seems remotely off to me now that you've explained it. $3000 went where is should have and you put $1000 towards the $1800 that you will owe for negotiation services.
You're agent put the money in the appropriate place. I don't see any issue here.Hopefully you will get issued short sale approval and be scheduled for closing soon. Good luck.
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Gabe, if you are in California, there is an Express Real Estate Services in that state that is a licensed agent. I'm assuming they are following state guidelines and I do know that you can charge a buyer a fee out there, but I don't know much more in the way of details. Harry Clay is a member here that could probably answer more for you, but on the surface to me, it all looks like it was done above board.
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Permalink Reply by Colleen Mullins on
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Reply by Gabe on
I found where I signed paperwork where it says "Buyer will be responsible to pay the short sale processing fee of 1% with a minimum fee of $1800 and will be responsible to post a refundable deposit if they want to be locked into the deal"You said it yourself. What don't you understand? -
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Smitty, the $1800 was said to me to go towards my final payment of escrow ($1000 up front $800 at closing.) this was actually a payment outside of escrow that goes toward nothing but ERES so say if i deposited $3000 to $100,000 then it comes out to be $97,000 not $95,200 if you add the $1800 because it doesnt go towards my final payment. I close escrow today, whether or not this transaction is handled since it is outside of escrow. They just called me and said they will have the keys by the end of the day and that they would like to discuss this issue as well, but they cant dangle the keys at me until I pay them that remaining $800 because I paid for the Condo already. that why I have said I was mislead even if I did sign it, I have in wirting that it was for somethng else. I think this is fightable, it was a mistake on their part and mistake on my part for signing. I will see if I can direct Harry Clay towards this discussion because I can use as much info as I can get. thank you I appriciate it. oh and when you say above the board, not sure if I understand what you mean by that?
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Gabe,
I'm not sure what was said because I wasn't there. I personally prefer a short sale negotiation fee to be on the HUD but it doesn't HAVE to go on the HUD. If your arrangement was to pay $1800 for the negotiation of a short sale, an you just closed, then in my opionion you owe $1800 somewhere. FINAL payment is a very open term. If your total cost was $100,000 for the property and you agreed to $1800 negotiation fee, then your total payment for the property is $101,800. UNLESS they agreed to let you reduce your offer to the seller the amount of the negotiaton fee, but I have no idea because I have no idea what you signed.
The fee was disclosed to you because you SIGNED an agreement for it. If you didn't understand what you were signing then you should have said so at the beginning. I don't think anyone was misleading you. You clearly admitted you didn't know what you had signed. This negotiator did their job because it sounds as if you got the house.
The fee is not just thrown around everywhere. It was in an agreement somewhere that you signed.I think that the negotiator could have gone one step further and put the fee on the buyer's side of the HUD, but again, they don't have too. That fee is a separate agreement the negotiator had to perform services that you agreed to pay.
(Oh, and above board...meaning they followed the rules to charge the fee. No one is trying to pull a fast one on you)
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Permalink Reply by Joseph Alfe on
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No legitimate third party negotiator would spring a fee upon anyone at the last minute. As a third party negotiator, we have a written fee agreement signed by the buyer BEFORE we start the process. That being said, it was disclosed and it is a reasonable amount, actually it's quite low (I certainly wouldn't work for 1%)
Also, unless it is a cash transaction, the negotiation fee MUSt be on the HUD-1. (Mine goes on buyer side)
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Right, but he signed the agreement to pay the fee with the P&S...not at closing.
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When you signed the purchase contract (P&S) you also signed something agreeing you'd pay a short sale negotiation fee.
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gotcha, yeah well I know and admit I made mistake by signing, the agent is buddy of mine and he is farely new (first mistake). He lacks experience and seems like you need a lot of it to deal with short sales. Its just when I signed I asked what it was and he said blah blah blah like I explained before, so i signed it. Just never was told to me hey just to let you know there will be fees that dont count towards escrow, thats where i feel i was mislead, either way how anyone see's it, i think it was just very unprofessionally handled. Like during the process of the short sale I had like 6 different people emailing me saying hey need you to sign this and that, I made sure to read every detail and also ask who the heck they were. this will not be a company I will do my business with again.
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Permalink Reply by Jeff Payne on
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Gabe, chalk it up as an $1800 lesson and enjoy your new property! Best of luck!
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Gabe,
It sounds to me it's your friend that didn't do their job in explaining the fee well. I can only assume that either your friend, the seller's agent or the seller involved the negotiation company and whomever represented you should have explained clearly what the process was. I think your bad sentiments are misdirected. It sounds as if the negotiation company did their job. They got you the house you wanted for the agreed upon fee. It's sounds as whomever represented your interest in the transaction could brush up on better communication skills. If you're going to stop doing business with someone, it should be your friend. The negotiation company did their job.
Negotiation fees again may or may not go into escrow. It would have been spelled out most likely in the contract you signed.
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