Hi,
I have a couple of short sale deals that I am working on and I want to bypass the realtor to save money on commissions. How are you guys doing it?
The bad thing about it is that I am also a Realtor/Broker and I don’t want to open myself up to lawsuits.
Thanks in Advance.
I am in the process of doing this right now. Just tell the seller to approach the agent and get a cancellation agreement. The agent may want a little to compensation for marketing. My seller’s agent didn’t ask for any thing.
It really shouldn’t be difficult because its a distressed property and it makes them look bad if it goes into foreclosure. If you have to talk to the agent yourself(better to have the seller approach)… just mention that the Seller wants to avoid bankruptcy and that your going to negotiate with the Lender.
If you found these deals thru the advertising of the listing agent, then it’s simply bad form to try to cut them out to “save on commissions.”
How exactly to you plan on saving on those commissions anyway, pray tell? If you are doing a shortsale, then there is no money left for the sellers to give anyway, it’s all up to the bank. The lender will have to approve the short sale figure, with the commissions. I seriously doubt that they will discount it anymore simply because there wasn’t a commission to pay. Lenders don’t think that in-depth. Besides, the majority of lenders require that the property be listed before they will even consider a shortsale.
And a final note, if you are an agent and you’re going to try to go around getting deals by cutting out the other agent’s commission, then be prepared to be a black-balled in your chosen profession. Personally, that will be worse than any possible lawsuit that may come of it.
Raj
why not try to offer the realtor a lesser amount and work together? The experience I have had cutting anyone of a deal was a nightmare. I agree, lender may require listing agreement anyway. I say work with realtor rather than against. get the realtor involved by tellling him/her how much to offer each lender and walk her thru it. Sometimes that works. Better to get along than fight over something that may or may not happen
I don’t use a realtor on any of my deals. And no the mortgage company WILL work with you without a commission. They will pay fee’s as well if there is not realtor. There is many different ways to get a short sale excepted, don’t just listen to other people. The best way is to try and you will learn from experience.
Example: Some companies need a realtor sometimes they don’t, just depends on how they feel that day and who you get to talk with. The reason why you get denied what you want is because the mortgage company doesn’t want to waste time with investors that complete a short sale and then never sell it. It simply waste’s their time. know your info and be firm. They will work with anything most of the time.
Try this maybe it will work for you…but maybe not
Just what I think
For everyone following this nightmare, just an update…The realtor’s 1st client backed out because of the time wasted and they found another house, and then I bailed out on the deal for obvious reasons. The realtor then got ANOTHER buyer and tried to negotiate again with the mortgage companies, but because she got them down on price and DID NOT CLOSE, the 2nd lien holder won’t deal with her and they called BEGGING me to help them negotiate their deal.
Everyone of my friends says to charge 10-20k consulting fee and lien the house as a precaution. Im not sure I want to get involved, but boy did I have a good laugh about that, and how scared she must have been thinking about haveing to call me. She had a go-between call me, she did not call me herself, as the last conversation she and I had, I hung up on her 3x. and if you know me, you know I have NEVER hung up on anyone in business in my entire life…that is how bad she was…oh how the tables have turned… ;D