Negotiating Short Sales: Class 200

There are some gentle nuances to negotiating short sales that I would like to share with everyone now. These negotiating tactics are basic in principle but powerful when used consistently and correctly. First is related to negotiating the 'Terms' and the second related to negotiating the 'Approval'.

Negotiating the TERMS.
As listing agents or short sale negotiators we all tend to have a very common trait and that is wanting to control everything from the start. Well let me tell you when negotiating there are times where that will work against you. For example do not waste your time negotiating the 'Terms' of the short sale when the negotiator first speaks with you. You know this conversation, "Our guidelines will only allow for 4% commission, we cannot allow Admin or Inspection Fees, etc.". Most agents stand up right away and pound their proverbial chest stating I want 6% and well you know the rest. This is not really the time to set up an adversarial relationship and there is nothing in writing in which any party can defend. So let that initial rhetoric from the negotiator slide past you and wait to negotiate the 'Terms' when you have an approval letter in hand.

Negotiating the APPROVAL LETTER.
If you do have issues of contention with the approval letter avoid confronting them as the 'Realtor'. Come at them as though you are a 3rd party negotiator and make polite understanding references to the issues. Something like, 'yes, I completely understand and agree that for the bank to do better on the offer that a reduction to 5% commission is needed and your 'guidelines'. The road block I am hitting from my side is that the seller's attorney has stated the Seller cannot move forward at 5% since they would then have to pay the 1% difference out of their pocket. Is there anything we can do to move this forward?"

Working from a 3rd party approach to negotiating the approval letter reduces the confrontation you often face when the negotiator feels you and he/she are battling this through.