My experience has been that this does not close the deal any faster. On the contrary, it just adds another layer to an already complicated transaction, and in some cases, it can actually gum up the works. Hereâ€™s why:
â€¢ The average short sale negotiator gets about $1K per closed transaction, some a little more, some a little less
â€¢ If you figure that the costs of running a business is about 20% (phones, internet, computers, office supplies etc), a professional negotiator would need to successfully close 100 transactions a year to make an annual salary of $60â€¦IF he or she closed 100% of the transactions, which just does not happen.
â€¢ For argumentâ€™s sake, letâ€™s say they close 80% which is pretty darn good. That would mean that in order to make a half decent living, the negotiator is working AT MINIMUM, 125 transactions a year!
â€¢ Since the average SS transaction takes over 4 months to close, itâ€™s safe to say that in this case, the â€œprofessional negotiatorâ€ has 40-50 open files on his desk at any given time! How is that beneficial to the buyer OR seller???
Now, you might make the argument that a professional negotiator has better systems than the average Joe, and that may be right, but no system can add hours to the clock! SSâ€™s require babysitting, thinking outside the box, and sometimes just sitting on hold for very long periods of time. There has to be a compromise somewhere, and that may be your file!
Iâ€™ve also heard the argument that PNâ€™s establish relationships with the bankâ€™s negotiators and therefore can cut through some of the red tape because of this unique relationship. While that may be true in some cases, it can also be a determinate:
â€¢ Sometimes familiarity breeds contempt. One bad day, and youâ€™ve made an enemy
â€¢ Bank negotiators burn out quickly! Iâ€™ve had cases where Iâ€™ve gone through three bank negotiators on one file.
â€¢ Sometimes the relationships get too chummy and the respective negotiators play â€œLetâ€™s Make a Dealâ€. Your file might get sacrificed in order to push another through.
I close over 90% of my short sales because I do my homework before I take the listing and I don't overwhelm myself by taking on too many.