Short Sale Third Party Negotiator: To Pay Or Not To Pay...

Lately I've come across other agents that hired negotiators. Two events sometimes pop up:

1. A listing agent is indebted to a negotiator and when "shortages" come up in negotiations the buyer is often the first person asked to cover the shortage.

2. A listing agent asks the buyer and/or the buyer's agent to pay the third party negotiator's fee. This one bothers me.

Question. Why should my buyer client pay a listing agent's hired negotiator? Someone please help me understand this...

I was speaking to an attorney recently, he happened to be a real estate broker. We seemed to agree on the following:

1. It is part of the broker's fiduciary duty when properly authorized, to conduct negotiations on behalf of the seller.

2. That broker and seller are responsible for the outcome of negotiations between bank and borrower (seller), period.

3. Any broker that hires a third party negotiator either does not have the time, knowledge or motivation to negotiate for their client. The scary thought is it could be all three.

4. A third party negotiator exists purely for the convenience of the listing agent, contrary to their attempted justification e.g. "Our negotiator has a 100% success rate."

Listing agents that claim a better success rate employing a third party negotiator don't realize they are implying they would have less probability for success if they did it themselves. This places a question in my mind about their capabilities as an agent overall, in my opinion.

Am I off base here? I'm a short sale listing agent / broker as well and I charge no one separately for my negotiating services. It's my job and even if I did hire anyone else, I would pay them myself. This is called work, extra work. Any broker that believes the buyer (or their agent) should pay their hired help should reimburse the buyer's agent for time and effort expended in showing dozens of homes prior to submitting an offer on this one short sale property (if accepted of course). I think that's fair.

Feel free to call me nuts for working for my commission AND handling all of my other responsibilities for all of my other clients while not passing on the fees to someone else. What are your thoughts? 

Marvin is Flying New Colors...

"When one door closes, another opens...". Well a door didn't really close, I've moved to a new company however my good friend Jason Gire at Noble Real Estate Services still has my highest recommendation for property management of rental units. So you investors out there, let me know if you need Jason's info.

I'm now with Trident Realty Group. It's owned and run by old friends in the biz, Mike Chiesl and Dan Chapman. The story behind Trident is it has a Navy/Marine Corps slant. A trident is a symbol relating to King Neptune, both of which have their ties to the U.S. Navy. Well, so do Mike, Dan and I, the first two being Naval Academy graduates and Marine officers while I'm the Naval representative. It made so much sense to join their company since the majority of our clients are military service members. It helps to know the special needs of our clients through direct experience - we know the loan programs available to them, we know how often they need to move, we understand their income; we've been there.

Of course my focus is still truly the same - I'm focused on residential real estate selling 1-4 units throughout the greater San Diego area. It's the same for Mike and Dan. We are now teamed up to share what we know not only with fellow uniformed service members but to all clients that need to buy or sell. What is the biggest benefit for our clients? A higher standard, a higher level of commitment to mission completion and the same core values that are necessary in any profession (military service or real estate sales): Honor, Courage and Commitment. It's a new company for me, but it feels like the right place.

6 Bedroom / 4 Bath Santee Charmer!!

10105 Lauren Way, Santee Full Listing Information

Meticulous details in this home featuring :

• Remodeled kitchen with granite counter tops, stainless GE appliances, cherry wood cabinets.
• Master suite added on first floor, perfect for guests.
• Pool, spa, barbecue bar and ample lawn area, perfect for entertaining.
• 3 Car garage, RV parking on a LARGE lot at end of cul de sac.
• TRADITIONAL EQUITY SALE. NOT A SHORT SALE OR BANK OWNED FORECLOSURE!!!
• Largest home in the development!

Contact me for details.

Thanks,

Marvin

University City Sunset View Home

4347 Rous Street Listing Information

Completely Remodeled Must See.  Newly tiled entry, new tile flooring, new carpet, complete interior/exterior paint, new baseboards and acoustic ceilings removed. New kitchen modernized with new cabinetry, granite counters and breakfast bar with all stainless appliances plus wine refrigerator. All baths remodeled in great detail. New backyard including landscaping with breathtaking westward sunset view. Near major freeways, shopping and the coast.

This one is worth a walk-through.

Thanks,

Marvin

Carlsbad living...

Beautifully remodeled La Costa home (MLS Link) 

- Traditional sale, close ASAP!  

- NEW upgrades include granite in kitchen & baths, hardwood floors, carpeting, baseboards, fixtures/lighting & paint.

- NEW marble fireplaces.

- No HOA or Mello Roos fees.

- $649,000

Contact me for details.

Have a great week!

Marvin