Three Reasons Why You Should Never Pay an Upfront Fee For Short Sale Help
Short sales have become commonplace in today's marketplace, and due to this, more companies are trying to cash in on the boom.
Following are three reasons why a homeowner should never pay an upfront fee for this type of help.
First of all, this is usually a very difficult time for a homeowner if they are considering short selling their home.
Typically it is due to a hardship, and money is usually scarce to begin with.
It is hard to pay for something if the money is just not there.
When dealing with limited funds, other things should take priority, e.
g.
groceries, health insurance, etc.
Plus, the compensation from the lien holder is quite reasonable on a successful short sale transaction.
While commissions vary on every transaction, typically the fee structure for a closed short sale is very close to what an agent makes on a normal transaction, if not more.
Obviously what a Realtor charges varies by company and region, though.
While there is a little more work upfront, as well as success risks, the payoff to the Realtor is well worth it in the end.
Not paying any fee in advance of selling a home is common in regular transactions, so why not in this type of situation? Some may not agree, and that is their right to charge whatever they like.
However, that brings me to the third and most important point.
There are plenty of good Realtors out there who will not charge a fee up front for services! Why pay an extra fee for something, when you can get the exact same great service for less? Ultimately what someone is willing to pay determines what fee can be charged in the market.
So it doesn't make any sense to not find great Realtor that will work without an upfront fee.
Remember, they get paid when the deal closes.
This, in turn, gives incentive to get the transaction closed.
Many short sale organizations also agree, and make it known that their policy is to not charge an upfront fee either.
Certified Distressed Property Experts, perhaps the biggest short sale organization, states in their guidelines that it is against policy to charge any advanced commission fee, and they have great success in closing these type of transactions.
In summation; it paying an upfront fee for short sale help is not necessary because, it is a difficult time for the owner, the fee structure from the bank is very competitive for success, and there are more than enough good companies out there who do not charge a fee!
Following are three reasons why a homeowner should never pay an upfront fee for this type of help.
First of all, this is usually a very difficult time for a homeowner if they are considering short selling their home.
Typically it is due to a hardship, and money is usually scarce to begin with.
It is hard to pay for something if the money is just not there.
When dealing with limited funds, other things should take priority, e.
g.
groceries, health insurance, etc.
Plus, the compensation from the lien holder is quite reasonable on a successful short sale transaction.
While commissions vary on every transaction, typically the fee structure for a closed short sale is very close to what an agent makes on a normal transaction, if not more.
Obviously what a Realtor charges varies by company and region, though.
While there is a little more work upfront, as well as success risks, the payoff to the Realtor is well worth it in the end.
Not paying any fee in advance of selling a home is common in regular transactions, so why not in this type of situation? Some may not agree, and that is their right to charge whatever they like.
However, that brings me to the third and most important point.
There are plenty of good Realtors out there who will not charge a fee up front for services! Why pay an extra fee for something, when you can get the exact same great service for less? Ultimately what someone is willing to pay determines what fee can be charged in the market.
So it doesn't make any sense to not find great Realtor that will work without an upfront fee.
Remember, they get paid when the deal closes.
This, in turn, gives incentive to get the transaction closed.
Many short sale organizations also agree, and make it known that their policy is to not charge an upfront fee either.
Certified Distressed Property Experts, perhaps the biggest short sale organization, states in their guidelines that it is against policy to charge any advanced commission fee, and they have great success in closing these type of transactions.
In summation; it paying an upfront fee for short sale help is not necessary because, it is a difficult time for the owner, the fee structure from the bank is very competitive for success, and there are more than enough good companies out there who do not charge a fee!
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