How Realtors Get Paid On A Short Sale 407-902-7750
The way realtors get paid in a short sale scenario which is very different from a traditional listing. In a short sale situation the seller is typically upside down on their mortgage which means that there is more money owed on the property than the property is actually worth.
A short sale is a pre-foreclosure arrangement between the homeowner and the lender in which the lender is agreeing to the sale of a property for less than what’s owed on the mortgage in order to re-cooperate some of their money rather than foreclosing on the property.
This usually means that the seller is financially unable to bring any money at all to the table and In this case the short sale lender pays the entire amount of the real estate commission when the transaction closes.
Banks will usually approve a commission of 5% to 6% which is then to be split 50/50 by both brokerages involved at the closing of the transaction.
It’s important to know that it’s illegal for a real estate agent to charge a homeowner an upfront fee to do a short sale on their home. Only real estate attorneys are legally allowed to charge an upfront fee for processing a short sale.
Some realtors will charge the seller a processing fee at the closing and it’s usually around 2 or 3 hundred dollars.
This is something that the agent is supposed to tell you about when they go over the listing agreement with you.
When the transaction goes to closing, each brokerage will receive its commission from the title company. Each brokerage is then responsible for paying its agent.
For Free short sale help in Orlando visit us at https://orlandorealtyconsultants.com/ or call 407-902-7750
