Replies to This Discussion

Permalink Reply by Jeff Payne on May 11, 2011 at 6:13am

Sure, if you have written authorization from the seller

• ▶ Reply

Permalink Reply by Cameron Piper - Keller Williams on May 12, 2011 at 8:30am

I was in a meeting with a Wells Fargo Vice President last week and this very question came up.  Her position was that as long as the seller authorized the buyer's agent to negotiate the sale.  It was noted very quickly by the VP however that there would be no change to the commission structure even though the listing agent wasn't negotiating.

 

You will also open up a huge can of worms with confidentiality, disclosure, fiduciary duty, and ethical issues if you proceed down this road.  It may be better to coach the listing agent if you feel as though they aren't up to the task rather than take over negotiation for yourself.

 

Cameron Piper

Coldwell Banker Burnet

licensed in MN

 

• ▶ Reply

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on May 15, 2011 at 2:50am

Are you asking if the actual BUYER could negotiate or the buyer's agent ?  The answer is the same- yes, with authorization.  But I ask because I am curious why any seller would allow a buyer to negotiate their debt?  The conflict of interest is too great.  Is the buyer an agent, licensed in NJ, an attorney, have E&O Insurance?

 

I suspect the liability could be huge if the buyer struck a deal where they got the property for a certain price which was beneficial to the buyer but on terms that were not realistic for the seller.

 

I would suggest, if the Listing Agent cannot or will not negotiate of behalf of their client, you agree to use a 3rd party negotiator and split ithe cost.

 

Thom Colby

Broker

Newport Beach CA

• ▶ Reply

Permalink Reply by Mark Sawyer on May 15, 2011 at 3:34am

NJ I don't know about.  I started doing short sales in 1985 as an investor.  I would go directly to the foreclosing lender and negotiate the transaction as an individual purchaser.  Much simpler then, but I always disclosed I was purchasing investment property at the outset.  The first one took two hours to negotiate and closed eight days later.   Local banks easy deals.  My investment company is a bit larger now but I still negotiate the short sales for my companies benefit.  Never have much problem, occaisionally some negotiator will object to title transferring to an LLC but that's easily overcome.

 

Mark Sawyer

• ▶ Reply

Permalink Reply by Scott Korbin on May 15, 2011 at 3:53am

Anything is possible provided all other compliance tests are met, but in my opinion, not advisable unless property has been exposed to market for an extended time period at ~115% of your offer price. Otherwise, negotiator is likely to see the discussions to be a waste of their valuable time and a fishing expeditiin on the part of the Buyer.

• ▶ Reply

Permalink Reply by Catherine Smith on May 17, 2011 at 5:03am

Hi Mark,

 

You mentioned that some negotiator will object to the title transferring to an LLC and that's easily overcome.  So you purchase it in your name then transfer that into an LLC?  How exactly do you get the negotiator to agree to that?  What documents do you have to use?  Thanks for your answer in advance!

 

Catherine

Mark Sawyer said:

NJ I don't know about.  I started doing short sales in 1985 as an investor.  I would go directly to the foreclosing lender and negotiate the transaction as an individual purchaser.  Much simpler then, but I always disclosed I was purchasing investment property at the outset.  The first one took two hours to negotiate and closed eight days later.   Local banks easy deals.  My investment company is a bit larger now but I still negotiate the short sales for my companies benefit.  Never have much problem, occaisionally some negotiator will object to title transferring to an LLC but that's easily overcome.

 

Mark Sawyer

• ▶ Reply