Buyer's agent asking to speak to negotiator
I've had this happen before and my sellers have never been willing to give third party authorization to another agent but I'm curious about you all feel about it. Buyer is anxious and putting tons of pressure on her agent. I don't want to give the impression I have anything to hide but am not comfortable with that request.
Replies to This Discussion
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Permalink Reply by Valerie Pressley on
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There is nothing additional the buyer's agent or the buyer can do to speed the process. If anything, they could annoy the negotiator and cause further delays. Besides, it's your client and your client's personal informtion. If you give the buyer's agent updates on a consistent basis, even if it's just to say that you called and there's no progress, then you can avoid a lot of buyer distress. Give the buyer's agent as detailed a report as you can give, which will make it easier for them to calm down. A vague update like, "They're working on it." does nothing to help an anxious buyer. Tell them what day the BPO was ordered (if you know it) and how many days it usually takes once the bank has received the documents. If you ask the person in the short sale department these questions, they will answer. Hope this helps. Print out this page of responses and send it to the buyer's agent!
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Permalink Reply by DAVID REEVE on
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We have had agents write part of deal that the buyer's agent get access or worse yet, we have had agents state they were going run our short sale for our seller (LOL). I reject those offers out of hand. The thought is completely ridiculous. On our Listing agreement, the seller has given us authority to reject any offer that is ridiculous or has any other provisions that we think will not be in his best interest.
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Permalink Reply by SE Davis on
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This is a common occurrence for short sale transactions. Most Buyers agents have very little short sale experience and even less comprehension of the processes. That buyer’s agent will cost you the transaction in various ways if you do not manage this carefully. I find that the buyer’s agent does not communicate the slow processes well to their client the buyer.
Solutions:
1) Start with the purchase and sales contract, if your state law allows set the closing date for “settlement on or before” 60-90 days from the contract date and build in automatic extensions of another 30-60 days. This establishes the long process premise of the transaction.
2) In the Short Sale addendum to the purchase, contract write in extra language designed to educate the buyer and that agent on contingencies that may occur and cause delays.
3) Place the buyer on an e-mail distribution list of the stages and status updates of the process this allows by-pass of an uneducated inexperienced buyer’s agent from not communicating properly to their client.
4) During the process, send emails to the buyer’s agent of both local and online short sale seminars.
5) Contact the buyer’s agent’s broker during the process. I have one buyer’s agent currently that exhibits unbelievably low comprehension of simple terms. I’ve had to explain the same things 2-3 times during the process.
6) Disclose to the buyers agent that if they show their buyer new homes to buy during the short sale process while under valid contract that they could be presented with liability and litigation from their irresponsible actions. 7) Explain to the buyers agent what their job is during a short sale process- "To be patient and keep their buyer client in the game".
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Permalink Reply by Patti Lyles on
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Very impressive SE Davis!
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Permalink Reply by Janis Schade on
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I generally will not disclose the negotiator. Several reasons why. Some of my negotiators are lawyers. If I start allowing this, they could easily implement additional charges for services. You should be able to answer any questions that the buyers agent has. If you start letting the buyer speak with the negotiator, you will have a mess on your hands.
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I went to a workshop, by B of A about a year ago. And the one big thing that I came away with is that this process is not about the Buyer. It is about DEBT RELIEF for the Seller. I just completed a B of A short that took 8 months to close. Part of this may have been caused by the Listing Agent taking a job in a different Industry and so her devoted time to the process was limited (Don't know that for a fact). I kept my Buyer informed and communicated with him as often as possible. I sent them paper work during the process to keep them (Buyer) moving forward. I think it was Richard who said that, he as a Buyers Agent requested to be included on the 3rd party disclosure (at times) however reading these posts, I believe that you can really get yourself into trouble (as a Buyers Agent) with Agency. The minute you go onto the Seller agreement to negoatie with the Bank, you would become a dual agent, I would think..
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Have you checked with your E&O insurance to see if they cover you for negotiating the short sale if you are not the Sellers agent?
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I have had a pushy buyers agent also, requested to be put on the authorization so she could talk with the bank. Here is the problems I had with that request;
1. That would give her access to Sellers personal information, ,my sellers wouldn't agree with that.
2. What if she agreed or negotiated something on the Sellers part..... then the Sellers are responsible for it, and I am clueless that it has been agreed to.
3. Does your E&O cover the other agent? Mine doesn't... Liability, isn't this just like Sub-agency I don't do that either.
Please let the Buyers agent know what is going on, the agent I had didn't understand the short sale process, and it didn't matter what I did.. she still called 3 times a day and at least 5 emails a day..... She requested that I do a conference call with her Buyer.... in 18 years that was a new one. Yes, I did it! the Buyer asked me questions she should have been able to answer, however I happily answered them, my Seller had nothing to hide. The Short Sale Closed. We all were very happy.
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Permalink Reply by Donna Clayton, Broker, MBA on
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I once requested such authorization as the buyer's agent when it became obvious to me that the seller's agent really did not know how to navigate the short sale process. The seller gave me the authorization and I actually took over the file. That's what it took to get it closed. In general, this is why I am very hesitant to get involved with short sales from the buyer's side. Control is the name of the game when negotiating short sales. When you are at the mercy of another agent, it limits your ability to convince your buyer that you are really in control, thus it is harder to hold on to your buyer. Rather, you are one-level removed from being able to effectively manage the transaction. I have a 100% closing rate on my own short sale listings. To the contrary, my closing rate changes to around 50% on transactions where I represent the buyer and another agent represents the seller.
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Permalink Reply by Kevin Vitali on
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No!! Every minute a negotiator has to spend updating a Buyer's Agent is time spent away from a file.
There is nothing accomplished by a Buyers Agent speaking to a short sale negotiator. The listing agent of a short sale can update the Buyers Agent. In most cases there is nothing a Buyers Agent can do to expedite the short sale.
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Permalink Reply by Rodney Mason on
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Most often, adding one more person to the mix is not advisable. Short sales are time consuming as it is. The person handling the seller's short sale approval has dozens of others lined up right behind that one. Too many inquiries may completely shut down the communication if the buyer's agent gets too aggressive. The seller is the client of the listing agent. You would not want a rouge buyer's agent causing the seller unnecessary issues with the final approval.
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Clearly, this is a communication issue. Disclosure = Communication.
REALTORS ® know that proper disclosure is how we protect ourselves and our clients from communication issues. C.A.R. & N.A.R. spend our dues money drafting up legalize to make sure stuff like this doesn’t happen. Do you use them properly?
Richard, is a buyer who maintains he was harmed because of the lack of knowledge and skills of others and projects little responsible for his 8 ½ month ordeal will be questioned by the Board about disclosures in his file. Because what disclosures he signed will supersede the Board hearing.
Legally this will all come down to those disclosures. What was disclosed and when & how.
Did the Seller and Buyer even read the bare minimum of Short Sale disclosures?1. SSA = Short Sale Addendum,
2. SSIA = Short Sale Information & AdvisoryAgents remember just about 10 months ago the Federal Trade Commission (FTC) issued a requirement that real estate agents or brokers working with distressed borrowers on short sales put a MARS disclosure on everything like the bottom of our emails and other items. Remember: the Mortgage assistance Relief Services (MARS) rule and what it said.
Your lender may not agree to change your loan and/or agree to a short sale. If you stop paying your mortgage, you could lose your home and damage your credit rating. You can stop doing business with ____________ at any time, you can accept or reject any offer ________________ obtains from your lender. If you reject the offer, you don’t have to pay the company’s real estate commission as outlined in the listing agreement. There is no guarantee you will get the results you seek from a short sale. ____________________ does not provide legal advice. Seek legal counsel.
When the FDIC decided that we don’t need to have this disclaimer in emails I kept it there since it covers me.
Secondly, the Buyer’s purchase offer was contingent upon getting Short Sale Approval. You may be in Contract but you cannot be in Escrow until the Short Sale lender(s) has issued a written approval letter.
Unless the Seller (person on the loan) signs an Authorization to Release it is illegal for someone to call to discuss the Short Sale with Sellers lien holders. Why? Because just like Dan Thompson wrote in his post it is about the Seller’s DEBT Relief and of no business of anyone else. Contact an attorney to have them explain.
Also read your E & O insurance coverage about this stuff, before considering thinking it would be a good thing to let whomever call the Short Sale lien holders considering a short sale.
KUDOS to SE Davis who really showed us how to avoid having such a communication presents itself.
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