Right now Is definitely the best time to get involved with Short Sales if you haven't already. With the increasing number of potential foreclosures on the horizon and pressure from the government on banks and lenders to avoid foreclosure, Short Sales will likely continue to be on the rise for the next 2 years.

How to Get Paid Full Commission

As you know, our negotiation services are 100% FREE to the agent & seller. In order achieve this goal our company gets paid in one of the following three ways:

1. We negotiate a 3% credit (in the form of sellers concessions) to be paid by the seller (the bank) towards buyers closing costs. We then have the buyer pay us a portion of that 3% at closing which would cover our fees. So while the buyer ends up paying our fees, they are actually not coming out of pocket since they are simply using the credit paid by the seller's lender.

2. If the bank is not willing to credit the 3% seller's concessions then the next alternative would be for the buyers to reduce their offer price by 2% and pay our fee with that 2% from the reduced purchase offer at close of escrow. In this case there is still no cost incurred by the agents or buyers for our services.

3. In the rare event that neither the bank nor buyer can afford or are willing to pay our fees then our last resort will be to discount our fee to 1% of the purchase price that the listing agent must contribute from their commissions which, at your discretion, can be split between you and the buyer's agent.

In order to facilitate a clean transaction that is 100% free to you as the agent, we strongly recommend you carefully execute the following steps before generating the offer.

1. Listing agent must indicate on their MLS listing that a 3rd partying is negotiating the short sale and the buying agent must follow special instructions before sending an offer

2. Listing agent must seek a strong buyer, which means a buyer with a larger down payment. The more cash the buyer has, the more likely the buyer will be willing to cooperate with paying the 3% from the seller credit or the 2% adjustment in the event that the credit is not approved by the bank.

3. Listing agent must provide the buyer's agent with an addendum stipulating:

A. Seller to contribute 3% credit towards buyers closing costs.

B. Buyer to pay Exit Strategy Group for negotiation / processing fees not to exceed 3%.

4. Listing agent must explain to the buyer that because a credit is being requested from the seller's lender, that they will not be paying out of pocket for the negotiation fees. In the event that the credit will not be honored, then the buyer must be willing to pay 2% which they can adjust from their offer. This keeps the buyer as well as the agents from directly having to pay our negotiation fee at closing. If the buyer for any reason is not able or willing to do this then we are left with our last resort of reducing our negotiation fee to a discounted 1% that must be either split between both agents or paid by the listing agent side of the commission.

Another alternative would be to seek a stronger buyer who is motivated, willing and understanding of the hard work that is put in to successfully obtaining an approval from the bank which allows them to purchase a the property at a discounted price with clean title and free of judgments and all other obstacles that needed to be cleared in order to get done. Or simply move forward with the current offer if there are no other buyers.

Listing Agents keys for success

1. Be confident in your team and take authority over the buyer's agent. Do not let the buyer's agent call the shots because they probably will not have even a fraction of the experience as your team. Instruct them kindly but be firm.

2. If you're not generating offers, drop the price by $10,000 weekly (bi-weekly at the most) until an offer is generated.

3. Make sure that you advertise the strength of your short sale team in your marketing when searching for new deals. You can use our track record to stand out amongst the crowd.

The foreclosure epidemic, inflated appraisals, and fraudulent real estate transactions have caused many homes to have no hope of selling without a Short Sale. A Short Sale is a potential solution for homeowners who are behind on their mortgage payments or facing foreclosure.

Effectively negotiating a Short Sale requires knowledge, skill, and is very time consuming. We have loss mitigation professionals who have worked in the banking and mortgage industry for years. As a REALTOR®, this will allow you to focus on finding and maintaining clients, taking on MORE listings and closing MORE transactions! It allows you to focus on your unique ability instead of sitting on hold with loss mitigation departments all day!

Benefits:

• Keep your Full Commission
• Do none of the work
• Free to signup, no hidden fees
• To view our Short Sale Lender Approvals click here