DO I NEED A NEGOTIATOR WHEN BUYING A SHORT SALE?

This mornings question is: DO I NEED A NEGOTIATOR WHEN BUYING A SHORT SALE?


When you are the buyer, you definately want to hire a buyer broker who is experienced in short sales, you can usually do so at no cost to you, they usually get paid their commission from the fee advertsised in MLS by the listing agent and paid at closing. This way you will have someone assisting you through each step of the short sale buying process.

The bank will have a negoiator on it's behalf, the seller should have a negotiator on their behalf, you really need someone looking out for your best interests. Short sales are not always easy, and there is things you can do to make them easier.

In brief you need to make sure:

Is the house priced at or near market value, too low of a sales price is one of the top killers of short sales.

Are there any other offer submitted. The banks like to work with 1 offer at a time, if multiple offers are in, it complicates the short sale and limits your chance for a honest try.

Make sure you have constant contact for updates... waiting is the hardest part...

Blog Updated Sept. 2, 2010
Blog written by:

Scott Godzyk
Godzyk Group Realty

Manchester NH

  • September 02 2010 - Manchester
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Answers (7)

For California Homes and Properties-
If you and your agent believe a negotiator is a must have, be sure that your negotiator is properly licensed by the CA DRE.


  • September 02 2010
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Profile picture for smoorekwfl
Unless you have great knowledge of the New Real Estate Business then I don't think you can be successful in purchasing  a short sale without a good agent and agent/negotiator. In my experience, short sales have become very time consuming and many agents do not fill out the required packages that the banks require. If the bank does not have all the paperwork that it needs, then it will put your contract to the bottom of the pile and move on. Thus when you have not heard anything for several months, it's usually because they don't have all the information they need. Many successful short sale agents either have a negotiator on their team (which is what I use), or have spent numerous hours via trial and error to navigate the trecherous short sale waters. Negotiators get paid a fee which is taken out of the listing agents commission, so it does not cost anything to the buyer.

On occasion you will see a listing agent trying to get the buyer to pay the negotiator fee, but as with everything in Real Estate, all can be
negotiated.

One more thing top note: each short sale is different. Some can have up to three different loans to approve and then even with all the work and waiting, the bank may still not approve the sale. So patience is a must and a good agent is even more important:

Good luck with you real estate journey!
  • September 02 2010
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Profile picture for natewolf
Many major banks have adopted the Equator system and the Realtor / Agent must be a qualified agent working on the Equator system.

But a non-licensed negotiator or some advertising this type of service, that is not a licensed Real Estate Broker is completely unnecessary and should be avoided as they typically will attempt to charge you a fee that the bank will not allow, and in many states is illegal.

Hire a knowledgeable Buyers Agent / Realtor and know that they will work on your behalf at no charge to you (the buyer) and their fee will be paid by the bank and is included in the net price to the bank anyway.
  • September 02 2010
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  • September 02 2010
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The simple answer is yes; you are always better being represented by a good Real state agent both when you are buying and selling.  We exist because we have a good use. Take advantage of our expertise.
  • September 02 2010
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Suggest hiring an agent 1st.  Then get the home inspected.  One main reason for short sales and foreclosures is maintenance on these properties put the past owner under.

In some cases, short sales mostly, the seller will try to hide deficiencies.  Some are minor and some are not. In foreclosures some of these houses were neglected due to lack of funds.  I've inspected a few that just need a match and start over.
  • May 04 2011
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Short sales can be tricky and a real pain unless you know what you are doing and can negotiate with the bank negotiator successfully.  Every bank/lender is different in how they handle short sales.  My husband, Tim and I have had one short sale that went from start to finish in only three days.  We've also had short sales that went on for 16 weeks and longer before closing.  You must be a properly trained Realtor® with experience in short sales to really be effective.  Definitely hire a Realtor® to do your negotiating.  There are just too many problems that can come up that you can't really handle by yourself as the seller.  Good Luck is my main advice and really be ready to have patience for an indefinite period of time.

  • May 04 2011
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