I would seriously laugh in your face if you said i needed to pay you $250 up front.

As for charging up front because "oh poor me we put so much time and effort into it, and nothing comes out of it." Well - that's the cost of doing business.
In the technology industry we face the same problem. The solution is that rather then charging potential clients up front for things they shouldn't have to pay for - simply so we can churn through as many clients as possible and hope for a return - we do what reasonable business people do. We analyze the potential for return in our investment of time, money, and resources. We attempt to mitigate the risk of throwing resources down the toilet by choosing the customers that offer the best possibility of payoff after our up-front investment. That's the reasonable approach to take in that situation. Anything else is clearly just trying to play the numbers game, and frankly shows a lack of confidence in your ability to perform. If you know you can close the deal, and you know you have a check waiting for you at the end - then there is no need to be paid up front ala carte.

Tue May 20 2008, 17:42

Charles:

I don't think that well-qualified buyers are at a premium. I currently represent (exclusively) 19 buyers. The are all qualified through underwriting & are out looking at homes to buy. I never have a problem finding buyers, because I do have a reputation for getting good deals for my clients. I think the retainer fee for short sale buyers is a way to show sincerity on both parts.

Tue May 20 2008, 12:16

I'm not saying that you are wrong, just that you are on the bleeding edge. I firmly believe that we should charge retainer fees, charge for CMAs and then rebate the cost at closing, etc. In fact, we run a Menu of Services approach. See my web site below. This is the only business that I know of where we give so much away for free, or shoulder large amounts on marketing and advertising with the **hope** that we will be paid back through a commission. Absolutely a terrible business model. How many dollars have we all lost in marketing/ad fees only to have the seller withdraw the listing? How much time (=money) have we spent creating CMAs for people who just use them to set their FSBO price or to list with whoever's CMA has the highest list price? Problem is, when everyone is giving away CMAs and tote-you-around-to-look-at-houses for free, it's tough to start charging fees. Want to hear a radical idea? I'd like to sign up listings at 3% that state that the buyer pays their own agent's commission. Why should my seller pay the opposing buyer's commission? Why shouldn't each party pay their own way? I could list homes for 3% less (sell faster) and the American Way of paying your own part is acheived!

Tue May 20 2008, 11:36

Why not, you definately will put your time in on them. You may even want to charge more.

Tue May 20 2008, 09:45

Paul,
I have heard of agents doing this in the past. With well qualified buyers at a premium, I think this would be a huge turn off. If you have folks willing to do this because you have an excellent reputation for making deals happen, then more power to you. Knowing the extra time and effort that goes into completing a short sale, I certainly understand wanting the compensation.
I would not ask for a retainer, but I certainly don't believe that you are doing anything wrong!

Charles

Tue May 20 2008, 09:42

Wow what a scam you have going. I would never use a crook like you. By any chance do you work for Remax.

Tue May 20 2008, 09:21

If you can pull that off, "you're a better man than I am, Gunga Din"

Best wishes,

Rudyard Kipling

Tue May 20 2008, 09:14