Sellers agent is charging the BUYER a 1% fee to negotiate the short sale...heres the language:
"Processor is negotiating a short sale, or discounted mortgage payoff, on behalf of the Seller and
Buyer of the Property. Processor, Seller, and Buyer agree and acknowledge that this sale is to be
conducted by including a Buyer Discount Fee of 1%(one percent) of the sale price but no less than a $2,500.00 minimum, to be paid to Processor ("Buyer Discount Fee"). The Buyer Discount Fee shall be paid by the Buyer to the Processor as an additional settlement charge to be included on the HUD-1 Settlement Statement and will be paid at the time of closing."
and the sellers agent won't even present the offer to the seller unless the buyer agrees to sign this addendum...1) is this legal and 2) are any of you doing this and 3) has it been done to any of your buyers?
Thanks
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Recently I partnered with a start-up firm out of Houston, TX to help them with "Probate Short Sales", I'm in the DFW area. I understand that they also have agents on the ground in Tyler, San Antonio and Austin. The Administrator of the Estate has also employed the services of 3rd Party Negotiator on the buyer's behalf. Strange?... I know, but in the end they are the ones trying to get the contract offer "approved" for the buyer, not the seller. Sure the seller also benefits from the sale. We use a "Highest & Best" bid form, whereas the buyers are aware of the fee and are advised to calculate fees into their offer.
For the record, I was opposed using a 3rd Party Negotiator, but strangely enough it's working ok for now. However, I still think I would like to have control of the negotiations.
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