January 8, 2019

Who pays Realtor fees in a short sale?

home sale

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Closing costs in short sales: How can upside down sellers afford a Realtor if there's no money in the home to pay for one?

Find out how to sell your over mortgaged Florida home in a short sale without paying a penny out of pocket in Realtor commissions or other closing costs...

Realtor commissions in short sales

In almost all Florida real estate sales the seller pays for all customary closing costs out of the proceeds of the sale. In a short sale, where there are no proceeds for the seller, these same costs are still due but things work just a bit differently. 

In a short sale, the seller’s lender will allow these same customary closing costs to be paid out of the proceeds of the sale, including:

  • Realtor commissions
  • Conveyance taxes
  • Adjusted real estate taxes
  • Legal fees
  • Seller paid concessions to the buyer
  • Junior lien payoffs
  • Seller relocation assistance
  • Recording, wire, courier fees etc.
The lender accepts the remainder of the funds as short payoff for the loan balance. 
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, attorney’s fees, recording fees, back taxes, conveyance taxes, 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.

Isn’t that beautiful? That means short sellers get to avoid foreclosure, sell their homes on the open market, be forgiven of massive mortgage debt, and nearly 100% of the time it never costs a single cent out of pocket!

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.


Minna Reid

Minna Reid is a Broker Associate at Killebrew & Company Realty Inc, serving Jacksonville, Florida.

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