Should a buyer’s negotiation fee scare you away from a short sale?

 

Short Sale Home For Sale Real Estate Sign and House - Right Side.Mr. Credit was back in studio today, and he came out ON FIRE with an issue he had come across while looking at properties that he wants YOU to be aware of. When looking at a short sale listing Mr. Credit stumbled on a remark that stated the buyer will pay a one percent negotiation fee. At first glance he couldn’t believe it; he felt that the buyer was getting screwed! But never fear, that’s why we have on expert panels here at the Lunch Hour with Mr. Credit. Real Estate Agent Ginger Proffitt of escondidohousepros.com is an expert on short sales and she had some fantastic information to alleviate Derrick’s worries and provide our listeners with some valuable knowledge about the short sale process.

In particular it’s important for you to know that not all Real Estate professionals are well versed in short sales. They are tricky, long term processes, which have to be done just right in order for everyone to succeed. Because of that, many agents turn to third parties to negotiate these short sales, which is where that scary fee comes from. However, you’re not necessarily bound to that fee, it can be negotiated! Ginger talked about many of the ways she works around that fee and tries to help all parties in the short sale process, it’s a very important piece of information that we encourage you all to check out.

In addition, we had Mortgage Lender Michael Sedloff of michaelsedloff.com in the studio and he didn’t come empty handed. In addition to being a great mortgage lender, Michael is a published author and he brought along his book Bella Will Rally a heart-warming tale based loosely on his mother and set in St. Louis, Missouri during the 20’s and 30’s. It’s available on Amazon and we encourage you all to check it out. But, Michael wasn’t just in the studio to discuss his book, he wanted to bring his knowledge of the industry and pass that along to YOU! Michael discussed when you SHOULDN’T buy a home as well as where he sees the industry heading in the next year and a half–spoiler alert he doesn’t necessarily see a market that is set to bust.

For more important insights tune in now to hear Michael, Ginger, and Derrick discuss the state of Real Estate in San Diego and hopefully make you just a little bit smarter.

To view the broadcast in it’s entirety click here or on the player below:Β 


To hear the audio only version of the broadcast click on the player below:Β 

 



Categories: Radio Shows

Tags: , , , , , , , , , , , , , ,

2 replies

  1. The issue of short sale negotiation fees is a good one. When I did short sales in the late 80’s, that was unheard of. So was using a professional negotiator. Now I would never complete a short sale without their services. The question a buyer should be asking is “Am I still getting a good deal if these fees are on top of the purchase price?” It is no different than APR on a loan. What is the long term impact? It makes no difference for my clients if the bank turns down, or counters the offer. Most of the time getting the property is what will make the difference for their long term financial strategy.

    Hope all is well with you, your family and your listeners!

    Thomas Baker
    Certified Residential Specialist
    La Jolla, California

  2. Agreed it could still be a good deal, but that doesn’t give the agent the right to pass along costs they should be responsible for to the Buyer does it? That’s like my CPA charging me $2,000 for my taxes because they can see I’m getting an $8,000 refund. One thing should not have anything to do with the other. The Agent should always do what’s in the best interest of their client, which in this case is getting the highest possible price for the home. Inserting a $5,000+ fee in there for whomever buys the property certainly doesn’t help with that, but it does help them personally. Out of bounds if you ask me. Great debate topic though and you can count on it being on the next Real Estate Debate show!