Question Details

Blasic Smith…, Real Estate Pro in Murrieta, CA

This question is geared towards agents...do you negotiate your own short sales or do you farm them out to a third party?

Asked by Blasic Smith Team, Murrieta, CA Tue Oct 19, 2010

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8
I negotiate my own short sales and get fantastic results. Short sale negotiation works best for someone that has patience and doesn't mind the administrative tasks, if this is not you send your files to a 3rd party.
0 votes Thank Flag Link Wed Oct 20, 2010
We are a third party and we negotiate the short sales for agents--and we do it well. I think it is only logical for a agent to hire a third party to do the negotiations. Who wants to do all the paperwork, stay on the phone with the banks, and stay on top of everything, for the same commission as a regular sale. Short Sale Docta is at no cost to the realtor and we do all the dealing with the bank. We do this everyday, so it goes smoother, faster, and easier....it's a no-brainer....why wouldn't an agent sub this out?? For more information, call or write....Adam@ShortSaleDocta.com.....or visit at http://www.ShortSaleDocta.com
0 votes Thank Flag Link Wed Oct 20, 2010
I WISH I could find a good company that does what they say they are going to do. I too have used 2 different Short Sale Negotiators who promised the world to get the business, but fall horribly short in follow through.

The first would never put anything in writing; I had to constantly call them to get an update and was treated as though I had a lot of nerve to be asking them for a status report. This from a well known name in real estate so I felt they would know what to do. Did not work out.

The second was a firm that was recommended and had an attorney on staff - or so I thought. Some of the issues that came up made it clear they were not comfortable with their legal status either. I ended up closing 2 of the 3 I attempted to run through them. They were very good at written online communication on the first and second deal but started to fall apart on the 3rd.

During this "Training Period" above and since I have taken many short sale classes and am now doing them myself.

I would rather NOT do the negotiations myself but until all the legal issues are ironed out about who pays the negotiation fees, who is represented if they pay the fee, and who is allowed to pay the fees I will keep doing them myself. I just pray the length of time the bank has to respond will get shorter so we can do the work we really need to do without the excess paperwork and phone tag babysitting we are caught up in now.
Web Reference: http://www.DawnOneal.com
0 votes Thank Flag Link Wed Oct 20, 2010
Most good agents have personality traits that make them unsuited for the details and frustrations involved in the negotiation of short sales, and are better served financially by doing what they ARE good at, and that is more sales, leaving short sale negotiation to experienced experts.
Additionally, good short sale negotiators with some time in the saddle have valuable contacts formed over years of working with the lenders. These are critical.
In a recent short sale, had a lawyer firm and a short sale negotiator with 9 years of experience on our side. We negotiated a price at 88% of fair market value (FMV), at least based on the Broker Price Opinion's estimate of FMV.
This left us with enough "slack" for our buyer to pay $150,000 of the seller's back IRS and CA taxes, the short sale negotiation fees, and unpaid HOA fees (all of which would have remained a seller liability after foreclosure).
In the end, the total price to the buyer was $1, 430,000, still $70,000 under FMV of $1.5MM.
I doubt that the typical agent would have been able to handle this without experienced help.
I certainly don't have 9 years of experience with short sales, and neither did the cooperating agent.
I think ALL our clients were well-served by having experienced experts handling this part of the negotiations.
0 votes Thank Flag Link Tue Oct 19, 2010
On two occasions, I tried two different negotiators.

One of them gave up when we couldn't get the second lien holder to bend. I couldn't give up because the short sale is for my friends. Between the seller and me making follow up calls. I was able to pull this through. Thank goodness we had a patient buyer.

Another short sale had 2 lenders. The negotiator tried to negotiate the loan. Second lien holder was Washington Mutual who wouldn't bend. She couldn't make it work. Bank foreclosed.

In both situations, it was still up to me to collect all the documents from the all parties, and then give them to the negotiator. THAT to me was the most time consuming and stressful part of the negotiation. If the third negotiators can do that part of it, then I'll let them handle it. But they don't. They expect YOU to give them all the paperwork, neatly filled in, all i's dotted and t's crossed.

So I think I'll wait....until a better plan comes along.
0 votes Thank Flag Link Tue Oct 19, 2010
My broker suggests that we use a third party negotiator. We had a presentation from a company up north & I was very impressed. I thought I would give them a shot and I am very happy I did. Most of the stress was taken off of me and put in the hands of the negotiator.
0 votes Thank Flag Link Tue Oct 19, 2010
I agree with Patrick. It is best to negotiate them yourself. But - if you have little experience with Short Sales, then it is a good idea to take a class, and understand the process. For agents who do large volume with respect to numbers of transactions, it would be necessary to have the right staff in place to handle the administrative / detail work. But, for the average agent who isn't setting the world on fire with loads of production - negotiating the short sale is a must. I have done my own so far. It is not rocket science - but there a lot of details and one needs to be able to anticipate needs of the lender. Good question.
0 votes Thank Flag Link Tue Oct 19, 2010
The less people involved, the better. It's better to handle them yourself, provided you know what you are doing.
0 votes Thank Flag Link Tue Oct 19, 2010
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