and people are probably wondering why it hasn’t sold.
Is it the reluctance of buyers and agents to buy a short sale (even though this one has approval), or the relatively-modest neighborhood you have to drive through to get there, or is it the lack of jumbo financing?
Or is it just another example that the higher-end market is in big trouble?
Might be all of the above, but let’s add another.
The first mortgage holder has approved the sale at $1.3 million, but there is also a second lender that isn’t included in that payoff.
All the buyer has to do to purchase this house is the following:
1. Pay $1.3 million for the house.
2. Pay $20,000 to the second lender.
3. Pay $13,000 to the short-sale negotiator.
4. Pay $2,000 in back HOA dues, and boom, just like that you’ll own the house!
This is the third time I’ve come across the maxi-fee for short sale negotiating, and because I like this agent a lot, I had to call earlier this week. My complaint is that they don’t have any of this in the remarks, it’s a big surprise to the buyers and agents.
On the others I’ve come across it’s not discussed until you have an acceptable offer. Once you have agreement on price, the listing agent springs it on you, and reduces the sales price to compensate to make you feel better. But you have to pay cash, and have a separate agreement with the negotiator, who happens to be in Detroit and supposedly has mystical powers over the lenders to justify his fee.
My buyers don’t like any of this, and should this type of real estate practice continue, don’t be surprised if there is more buyer reluctance.