I get a constant barrage from realtors who want to argue their position on short sales. Back in September, I was ranting about the short-sale negotiator’s fee here, saying the listing agent should pay it if they can’t do the work themselves. But Tim disagrees – he left this comment yesterday:
Tim: “Sorry Jim, you have it wrong. Who benefits? I earn a paycheck. The buyer gets a house. As a listing agent I charge 6%. The buyers agent takes half of that. I pay my assistant & my brokerage. Negotiating with illiterate morons on another continent is specialized work, and it is not easy or cheap. Without it, most short sales fail, and MY client loses a home.
Why do you believe I should pay $1500 – $2500 when I am not on title, nor am I buying a home? It is a charge that has to be paid by someone. Maybe you are so well paid that you are eager to absorb that fee, but not me. It is legal to insist a buyer pays that fee, no different than an appraisal. They will not get the home without paying for both. There are no clear cut guidelines to address this issue, and it is a rather large amount to absorb. Until I am told otherwise, buyer pays it.”
Jim: You pass the job onto a short-sale negotiator who charges separately – what do you do for 3%?
Hopefully Tim is still reading, and he or other short-sale realtors can chime in. I agree, negotiating with illiterate morons is a specialized work. But he’s not doing it – he has hired an independent contractor to process the file, and making the buyer pay for it.
You say that you “earn a paycheck”.
How do you earn your 3% commission on short sales, when you farm out the work? You have been hired to provide professional services, what are they exactly? Meet the appraiser?