What Fee Do you charge for negotiating a SS?

Foreclosures, Short Sales, Tax Foreclosures
1

Hi Everyone,

I have decided to start doing SS again. Stopped for a year so I could concentrate on another business opp. and I totally miss the challenge of doing them.

Just wanted to know what a fair price is to charge for doing a SS negotiation? I would be working for Mort. Brokers/Realtors and won’t be getting paid until the deals close. So I didn’t want to under charge or over charge and since I have been out of the loop for a while just wanted to know what the standard fee is just for negotiating one and nothing further.

If you don’t want to post the amount you charge, please feel free to PM me.

Thanks in advance.

2

We charge 4k for a buy and hold scenario and 25% of the spread for back-to-back transaction using the option contract.

3

When you charge for a Negotiation Fee, where do you put it on the HUD? Everytime I put one on the HUD the bank says they will not pay it, because they will not pay a Realtor Commission and the Negotiation Fee. If you have gotten around this please tell.

4

Hi Love2Vest,

When I was working on them in the past, I would work that detail out in the beginning. They would allow from 2% to 6% of the purchase price/ negotiated amount.

Not sure if it is that easy now, since I have been away though. Hope it is that easy if not, then I would like to know also how people get paid at the end of the closing if they are just doing the neg. for the SS and not the double closing option.

5

Just what I thought. Just wanted to make sure I wasn’t under charging. Didn’t know if most based their fee off of the negotiated amount or if people where charging a flat fee.

Which do you think is best:

A flat fee?

or

A percentage based off of the negotiated amount?

Thanks for your help.