Pay a negotiator? Or do it yourself?

Question

So we closed on our first short sale yesterday and it was a great deal that literally fell in our lap.  But that inspired us to finally take the time to enter the short sale arena.

So Im interested to hear from Bp members if you negotiate yourself or pay someone else.  What do you think is best and what are some advantages an Disadvantages?

And how involved will a realtor need to be? Do they do negotiations too?

Bill Gulley · Answer

How to make money: Surround yourself with people smarter/more knowledable than your self! Good luck!

Maryann L. · Answer

Jimmy,

I think it's a matter of personal preference.  If you are so busy with short sale properties that you can't see straight, you're going to have to outsource and pay someone to do it.  If you're doing one here and there, you could attempt it, but you obviously aren't going to have the experience a negotiator that does it daily does.  You'll have to muddle through.

There are companies out there you could pay to train you to do it, but it's usually for a fee.

The biggest thing I would offer if you do hire a negotiator is TRUST.  Make sure you TRUST that person because the sale literally may hinge on their moves.  Interview them too.  Find out how many they've been able to get to closing, success rate, hurdles they encounter, what will or won't they do, who will they or won't they work with, what happens if you have to pull out, etc.

Bill Gulley · Answer

Jimmy, if that deal fell in your lap, how successful were you? I would think there would be a big difference between a community bank and BoA. I'm not doing SS, but I have done discounted slaes subject to foreclosure, so from that angle, I could tell you that convincing the lender that it is a win for them is key, can you do that? Are you very well versed in appriasals, repair estimates, and the legal frame work you need to operate within? Farming it out to a specialist might limit your liability, can you get the deal done without a deficiency for the seller? Do you have a history of knowing what that lender has done and might likely take? Do you understand the benefits to the bank, have an idea what their real costs might be in writing down the principal amount? If you do, go for it, otherwise, I'd suggest you find a good SS wiz and stick to them like glue and learn. Down side is that you have to pay them in the deal, but they might get you a better deal and earn it...and then some.

If I were to get into that game I would need to brush up on what was going on now and I would tackle it, but only since I have experience in the banking side and years in the real estate market. If it were not for that, I would seek assistance. We have a couple investors here who specialize in that arena, I'd have a long talk with them and see what they thought. Either way, good luck!

Ibrahim Hughes · Answer

Does the negotiator get paid up front or at the closing? Generally speaking, how much is their fee?

Jimmy C. · Answer

Well when i Say it fell in our lap i mean we didn't do any Negotiating at all.  An associate of mine knew the seller and the seller did all of the legwork with his lender. Really all we did was write the offer and close with cash 4 months later when we agreed on the price.

I have previous experience as a mortgage broker but have been out of finance Since 2007.  I think we will be better off paying a pro at least the first couple deals, right?

Also i have noticed people saying that they do their own negotiating and then get a fee for that on the hud if the deal has to go a to c?  so thats an additional income stream i guess we would miss if we use a pro negotiator?

Pay a negotiator? Or do it yourself?

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