How do the real estate agents and other closing costs get paid in a short sale?
Considering a Florida short sale but wondering how much it will cost? How will all the fees get paid if there is no equity in the home? In a short sale, all closing costs are paid out of the proceeds of the sale, with the lenders agreement.
Nearly 100% of the time short sellers have no out of pocket costs in a short sale!
How does that work exactly? How do the Realtors get paid?
There are several costs involved in selling your Florida home:
- Real Estate Commissions
- Real Estate Conveyance Fees
- Owner’s Title Insurance
- Title Fees
- Settlement
- Survey
- Seller concessions to Buyer
- Prorations for taxes, HOA etc.
In a short sale, there are no proceeds to the seller. Lenders allow these costs to be deducted from the proceeds of the sale and the lender accepts the remainder of the funds as short payoff for the loan balance. Sometimes, lenders even allow the seller to get a relocation incentive.
FOR EXAMPLE: Let’s say the home sells for $200,000. In a short sale, the lender doesn’t get $200,000. The lender gets $200,000 minus all the costs of sale, including REALTOR® commissions, closing costs, payoffs to junior lien holders, seller concessions to the buyer, etc. So, at the end of the day the lender agrees to accept a net of, say, $182,000 (remember, this is an example only) after these costs.
Need help with your Florida short sale?
I can't recommend Minna enough for a short sale! She eased my mind during the entire process and followed through 100% from day 1 to the closing. She and Jaime handled everything flawlessly. I am so grateful to Minna and Jaime for all that they did to help us through this process.
Casey
Last Updated on November 5, 2024 by Minna Reid
I’ve read some good stuff here. Definitely worth bookmarking for revisiting. I wonder how much effort you put to make such a excellent informative site.
I have learn a few excellent stuff here. Definitely value bookmarking for revisiting. I surprise how a lot attempt you set to make any such magnificent informative site.
Thank you for sharing your info. I truly appreciate your efforts and I
am waiting for your next post thank you once again.
Hi there, You have done an incredible job. I will definitely digg it and personally suggest to my friends.
I’m sure they’ll be benefited from this website.
We’re a group of volunteers and starting a new scheme in our community.
Your site provided us with useful info to work on. You
have done an impressive job and our entire group can be grateful to
you.
HI Minna! I learn new & amazing stuff here & I’m definitely coming back soon to taste something new here. here is recommendation. https://axiomhome.us/ you can visit this website for amazing content