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FAQ: Why do I have to pay you an upfront fee to list my Short Sale?

By
Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

Florida Short Sale Broker 407-873-2747Broker Bryant,

We'd like to list our property with you but just don't feel comfortable paying $xxx up front to list the property. We can list the property now and as soon as you get a contract we will be more than happy to pay.

Thanks, A. Little Hesitant

Dear Mrs Hesitant, 

I do understand your concerns. There are plenty of REALTORS(R) that will list your property and not charge an upfront fee. They may even be experienced in Short Sales. However, I don't handle my business that way.

Short Sales are complicated and time consuming. There is also no guarantee that your lender will accept one. We may very work for months, to try and get one accepted, only to have your lender foreclose on the property. Or your situation could change and you decide to go another way after I have put in a lot of hard work.

Due to these intangibles, that I cannot control, I choose to handle Short Sales by offsetting some of my costs (both, time and real)  by charging a small fee up front.

I also want to make sure that you are motivated to go through the process. I do this by collecting the needed information (short sale package) up front and asking you to place some "skin" in the game (my fee).

My market is saturated with folks that need help. Unfortunately I'm not able to help them all so I have these practices in place to help me to sort through and focus on the folks that I feel I have the best opportunity with helping them complete a successful Short Sale.

Short Sales are serious business and require you and I to be on the same page so we can achieve a positive end result.

I fully understand that my services are not for everybody. Give it some thought and let me know if you decide to move forward. Make the decision that works best for you and your situation.

I hope this helps.

 

FAQ  #1 What is a Short Sale?
FAQ #2 What is a Hardship and why do I need one? 
FAQ #3 What goes in the Hardship Letter?

DISCLAIMER: I am a Florida Licensed Real Estate Broker. This article is my opinion based on years of experience and the laws of my State. All Sellers are urged to seek competent legal and tax advice. I am NOT qualified to give advice in those areas.  

CENTRAL FLORIDA REAL ESTATE SHORT SALE INFORMATION

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TESTIMONIAL

 

 

 Bryant,  I want to thank you for all the help you provided in a professional manner. The short sell went well considering all the negotiations you had to do with First Horizon and Etrade. The end result saved us money and I hope some of our credit rating. I would not hesitate to recommend you to anyone interested in purchasing a home or doing a short sell.

Best Regards to you in the future,
David Fisk  Successful Short Sale closing Feb '09

 

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 Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Windermere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

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Comments (31)

real estate real estate
Providence, RI

Bryant, are you really charging a upfront fee? That sounds like a good strategy but I am afraid some people might be scared off.

Mar 22, 2009 02:27 PM
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate

I read your previous post about charging the upfront fee for your short sale listings. This one is also good. So did you list this one?

Mar 22, 2009 02:34 PM
Julie Ferenzi
john greene Realtor - Plainfield, IL
Julie Ferenzi

I like that you charge an upfront fee.  I've worked on more than a handful of short sales that cost me money, time and... SANITY.

If they aren't making their mortgage payments or paying their bills, they've got to have some extra money laying around somewhere.  I'm sure this ensures cooperation on the part of the sellers then as well.  I've also had the problem that once the property is listed the sellers become difficult to communicate with. 

Great advice. 

Prayers of healing to TLW!  Hang in there... both of you!

Mar 22, 2009 02:42 PM
Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Bryant...

There has to be times when we need some revenue to make things happen ... this is a business and not a lottery, and sometimes you have to pay to stay in the game.

Mar 22, 2009 02:51 PM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

BB, What I admire is that you are running your business. As good as you are, you cannot take on everyone. Some people have to be turned away. You are the decision maker and you have to do what is right for yourself first. When you take a seller on, they are the lucky one to get to work with such an expert! You give your all and with wonderful results.

Thinking about your both.

Mar 22, 2009 02:54 PM
Marian Gregor-Ann
Keller Williams - Ann Arbor, MI
Arbor area Real Estate

Hi BB, This sounds like a helpful strategy to wed out the maybes from the serious sellers. It sounds like a plan to get seller cooperation which is sorely needed especially in a ss transaction.

Mar 22, 2009 02:57 PM
Lizette Fitzpatrick
Lizette Realty - Richmond KY - Lexington, KY
Lizette Realty, Lexington KY MLS - Kentucky Homes

Good for you! Short sales are not for everyone. I've done two and a foreclosure. I don't want any more. I like the idea of your fee to the sellers.

Mar 22, 2009 04:15 PM
Carol Lee
Dilbeck Real Estate - Oak Park, CA
Realtor - Agoura, Oak Park, Westlake CA Homes

BB- I have the same question as others- some of these people have NO $$- what do you charge up front, and do you re-imburse ir/when the sale goes through?

Mar 22, 2009 04:35 PM
Susan Neal
RE/MAX Gold, Fair Oaks - Fair Oaks, CA
Fair Oaks CA & Sacramento Area Real Estate Broker

Hi BB - This is interesting.  When I was practicing law I used to charge a small fee for an initial consultation, which was supposed to be a meeting of about 20 minutes, but often stretched into over an hour.  If I didn't charge a fee and establish immediately that my time was valuable, they would bring every legal question they could dream up, including hypotheticals, and would camp out in my office all day.  If they didn't want to pay, I didn't waste my time with them.  I had plenty of paying clients whose matters I could be working on.  I think it should work well for you in your situation.

I will be thinking about you and TLW tomorrow.  I will imagine a white light of healing around her, as well as including you both in my prayers, as I have been.  Take care of yourself too, Bryant.

Mar 22, 2009 04:48 PM
Cathy Tishhouse
RE/MAX Showcase Homes - Royal Oak, MI
Royal Oak Real Estate

Our title company has started charging an initial fee to get started and I have not had any complaints so far.  If I do, this is a great post to guide me in what to say - or just share it with them.  Thanks

Mar 22, 2009 05:15 PM
Sheldon Neal
Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ
That British Agent Bergen County NJ

... Hi Bryant !

One of the best parts of your post for me was this :

I fully understand that my services are not for everybody. Give it some thought and let me know if you decide to move forward. Make the decision that works best for you and your situation.

I absolutely love these lines, and just shows you are sincere and not desperate for their business.

Brilliant Bryant !!!! (hey that has a nice 'ring' to it !!! LOL )

Cheers !

Sheldon

...and of course, my bestest thoughts and prayers will be on the way for you and the Luvly one for tomorrow ... :o)

Mar 22, 2009 05:34 PM
Steve Shatsky
Dallas, TX

Hi BB... I love this post!  I have been dabating a business model similar to what you describe for exactly the reasons you have mentioned.  This post nudges me a bit further in that direction!  Thanks so much for sharing. 

You and Billie remain in my thoughts and prayers.

Mar 22, 2009 06:27 PM
Allison Stewart
St.Cloud Homes - Saint Cloud, FL
St. Cloud Fl Realtor, Osceola County Real Estate 407-616-9904

BB- The difference between a volunteer and a professional is a fee.  As a professional, a fee establishes your business.  a donation of time, effort or knowledge,  makes it a charity. 

While it is true you can help people, in order to stay in business you cannot help them for long, without a fee.

I think we will see more professionals protecting their businesses by recognizing that knowledge is a viable commodity.

Well Done!

 

 

Mar 22, 2009 09:09 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

All I can say is:

We are paid for what we know, not what we do.

If you have the expertise and on-going business, you must prioritize your time.  Consumers who are willing to pay up front for your knowledge will benefit. 

This is a market based fee.  If there were no market for your services, you wouldn't have an up front fee.  Since there is a dearth of expertise in short sales in your market area, you have rightfully made the decision to work for folks who are willing to pay for your expertise.

Good for you.

 

 

Mar 22, 2009 10:25 PM
Barb Szabo, CRS
RE/MAX Above & Beyond - Cleveland, OH
E-pro Realtor, Cleveland Ohio Homes

Brian, I liked this letter for many reasons, not the least of which is that there was no arrogance in your tone, only a sincere statement about the market and the way you do business. My favorite:

My market is saturated with folks that need help. Unfortunately I'm not able to help them all so I have these practices in place to help me to sort through and focus on the folks that I feel I have the best opportunity with helping them complete a successful Short Sale

Mar 22, 2009 11:37 PM
South Austin Real Estate Blog
Sky Realty South Austin - Austin, TX

BB... I see more and more of upfront transaction fees, its reasonable and does help seperate the real sellers from the market testers. Of course shortsales are not market testers... some folks just have a real hard time facing the facts and want a miracle.  If only we were miracle workers.

Best to TLW today, prayers sent for you both.

Mar 23, 2009 12:15 AM
Petra Norris
Lakeland Real Estate Group, Inc. - Lakeland, FL
Realtor, Lakeland FL Homes for Sale

BB - You definitely have to prioritize your time and what better way to weed out the good from the bad apples. I really commend you for doing this, while staying true to yourself.

 

My best to you and TLW!

Mar 23, 2009 02:21 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Hi all, There are folks who will not list with because of the fee. Although I have found them to be in the minority. Most have no problem with it and understand completely why I charge it.

You have to remember that I am offering to help them out of a very difficult financial situation and help them salvage some of their credit. Some haven't made any payments at all for a long time certainly they can come up with a small fee if they are really serious and motivated.

What I'm finding is that people get behind,m call their lender and the lender tells them to hire a realtor and put the property on the market and they may give them a short sale. The consumer has NO ideal what this means. They just call an agent and the agent comes over and lists the property. Maybe the agent has a clue and maybe they don't.

Before I get paid one cent I spend time talking to these folks to see if there may be options to stay in their house. If they want to stay then I can direct them to their lender to see about a loan mod. If they truly can't afford to keep the house or must move I then send them to an attorney to seek advice.

If all of this fails, we discuss placing the house on the market as a short sale. Just my prelisting advice alone is worth way more than my piddly little fee.

My fee is non-refundable and is not credited at closing. It is earned at time of listing and is not an advance fee. It's a fee for services rendered.

Mar 23, 2009 11:12 AM
AMBER NOBLE GARLAND - Top Real Estate Expert, Property Tax Appeal Specialist & Author
Strategic Marketing Expert & Relocation Specialist Serving New Jersey and nationwide! - Marlboro, NJ
- The Agent You Can Trust To Deliver REAL Results!

Interesting concept Bryant. I'm just wondering how many folks have $$ to pay you an upfront fee, considering they're close to losing their home to begin with.

Mar 29, 2009 12:51 PM
Debra Kukulski, Broker Associate
RE/MAX Suburban - Cary, IL
SRES;SFR,CDPE;GRI;ABR;e-PRO Realtor, Northern IL

Bryant, your reasons are very compelling and a good way to week out the people who will not be actively engaged in the short sale process to work together with you towards a successful result.  Short Sales are incredibly time intensive.  Thanks for the great post.

Apr 04, 2009 02:36 AM