WHY AGENTS CHOOSE TO NOT USE SHORT SALE NEGOTIATORS

Anyone who has participated in a short sale knows that it can be highly stressful and that it is not always a quick process. The fact is processing a short sale efficiently takes a lot of experience and is continuously changing.

ARE THERE COMPANIES THAT CAN PROCESS MY SHORT SALE?

There are individuals and companies out there who offer the service of processing a short sale on behalf of the agent/homeowner. Some of the individuals/companies out there have tainted the idea for most agents who have considered using a 3rd party negotiator due to their poor business ethics and even worse communication; In some cases the short sale processing position is also the most important part to the whole puzzle with communication being key. The reality is, escrow officers, title representatives, and many of these amateur negotiators are inexperienced. They lack the proper knowledge and care that a transaction of this sensitivity needs. A professional negotiator knows the urgency of the transaction and see’s the servicers as machines with many living moving parts; With more parts comes more potential hold-ups. A short sale negotiator should be like an experienced mechanic who can spot potential malfunctions in the system and who can make the necessary repairs on the run; If needed. Here are some common reasons that agents don’t use 3rd party negotiators.

1st – I don’t want to give up my commissions!

At a 1% fee upon closing, like most short sale processors, we work with many of the top 5% producers in the United States in real estate sales. If there is one thing they’ve taught us is that there is no money for them behind a desk or chasing people around the bank; They make their money prospecting.  To us the concern over the commissions is a mindset of limitations. If the average short sale can take dozens of hours it comes down to what is your time worth.

To add fuel to the fire investing possible hundreds of hours into a deal that eventually collapses also devalues your over all efforts. Why do all the “behind the desk” work when someone could do it for you? What rings true is the analogy of an agent processing their own short sales is like Tiger Woods not using a caddy.

2nd – I can do a better job myself!

This may be a true when the agent is compared to an amateur. Who wants to let an amateur take the shot when the game is counting on it? Not I and I can bet not many out there would. Why do something yourself when you can let someone who truly excels at it to do it for you? With the right dedicated professionals on your team you will be more successful and with more time to do other necessary tasks to build your business.

3rd – The 3rd party negotiator is just as hard to reach as the banks negotiator!

The problem here lies in the individual negotiators inexperience and the fact they are not putting themselves in someone else’s shoes. During the process there is nothing worse for the deal than to be kept in the dark. We know that communication is KEY with dealing with the agents and the lenders.

You need to do research and interview the negotiators you are potentially handing off your valuable transaction to. We know you want to be in control of your transaction, but a company that truly handles short sales has a system of checks of balances. A system set up to have multiple pairs of eyes and hands working and reviewing the file, ensuring that nothing falls through the cracks.

Brett@ishortsalenow.com - 3105646389

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Comment by Brett Goldsmith on September 26, 2012 at 11:02pm

I actually prefer working with BoFA over many lenders. But having an escalations team assigned to our company due to the volume of files we have with them definitely is a life saver. Well's Fargo files being ran through equator can test your nerves for sure! You make an interesting point though Joe =]

Comment by Joe Beauchamp on September 26, 2012 at 10:16pm

We do short sales for agents and lawyers across the U.S. I find WF and BofA forcefully becoming much more of a pain to deal with seemingly every day and am thinking of dropping short sales because of the lack of value of doing all that work. I usually let these mental exercises of 3rd party or not just fly by, but was amused at how similar all the arguments are for being FSBO as opposed to using a real estate agent to sell your property. (In NJ, the main criterion is to sit in a room for 90% of 2 weeks to get a license.) It is just a "religious" discussion. So, tell me "again" why everyone should sell FSBO?  ;-)

Comment by Paul Blucher on September 26, 2012 at 4:52pm

Evelyn & Others, be very careful.  If you are negotiating short sales and advising the seller you may very well be practicing law without a license and exceeding your E & O coverage.  If you are working with an attorney in these matters and working at the direction of counsel you should be fine.  I am an attorney in florida and I am very suprised at all of the realtors that are handling these matters at a great risk to themselves.  The Florioda Bar has already suggested that this may be considered practicing law unless all you are doing is faciliting the process.....almost impossible to do.  So, you should call your attorney!   Thanks,  Paul

Comment by Jennifer Sims on September 26, 2012 at 1:59pm
Experience is a must! I work both Idaho and Las Vegas and charge a buyers premium of 1% or $1500 which ever is greater. I negotiate all my own files and have the system down to a science. I use short sale commander and it really helps keeping everyone updated. I have 40 files now and I spend maybe 4 hours a day on my files. The key is to have your pack clean and correct. Banks are getting very picky it seems lately..
Comment by Terry McCarley on September 26, 2012 at 1:55pm

I would proceed with caution Evelyn - if you are not a licensed agent in the state where the property is located I doubt it would be legal.  I would call the legal hotline before even considering negotiating short sales outside of the state where you have your license.

Comment by Evelyn Eastwood on September 26, 2012 at 1:51pm

I have had sellers that are located outside of my State.  I think I would be able to do a short sale outside of the State of Florida.  I suppose it would be the same process.

Comment by Terry McCarley on September 26, 2012 at 1:51pm

Hi Brett - I am located in Cape Coral, FL and I handle Cape Coral, Fort Myers and the islands (Pine Island, Bokeelia, Matlacha and St James City).

Comment by Brett Goldsmith on September 26, 2012 at 1:48pm

Thanks for the positive responses. @Evelyn Do you process short sales outside of Florida? @Tony Very True!  @Terry Where are you located?

Comment by Evelyn Eastwood on September 26, 2012 at 1:44pm

I am a Realtor here in Florida.  To supplement my income in this very slow Real Estate market, I process and negotiate short sales for other Realtors and Attorneys.  It is very important to keep them posted on the status of the short sale process and to finish any assigned task from the ss lenders in a timely manner.  I process at the least 20 or more files at a time.

Comment by Tony Morales on September 26, 2012 at 1:27pm

I am total agreement that most agents do not know how to NEGOTIATE short sales  ofcourse they know how to process short sale  but their is a big difference. recently.,  I experienced an agent  in my office doing their own file and was spending 2 -3 hours almost eveyday for  over a month on the phone between 2 lenders .Finally, at the encouragement of the office manager, the agent finally came to me for help. After agreeing to my very low fee, I made 1 phone call and the issue was resolved and approval sent. I used that same analogy that it's like working on your own car and when it still doesn't run right  you bring it to the expert.  What's that old saying.."Are you jumping over quarters to get to nickels?" 

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