Mortgage Forum

Mike

I've tried searching for the answer but was unsuccessful. How do realtors get paid on a short sale? Do they negotiate with the bank? Not a good chance the homeowners can pay the realtors. Thanks

lauren14

Mike,

I saw this question on google, its old so you probably have the answer, but nobody answered it in this thread so I will. Any party involved in the transaction can negotiate with the lien holder, Realtors usually won't. If more Realtors negotiated they would be taking my jobs so I'm happy they don't. Everyone structures their deals differently, but I structure mine so there is no out of pocket expenses for the home owner. I especially wouldn't have them pay the costly Realtors commission. How could they pay several thousands in costs when they can't pay their mortgage, that doesn't make sense. When you are negotiating a discount, you factor in the as is value of the home minus all the closing costs involved.
Lets say the house is worth 300k;
20k in closing costs
15k in Realtor commission
15k for your fees
2k for lawyer fees
brings the total to 248k
you want to be safe, so you offer the bank 240k. That is only if there are no other liens. Realtors get paid a commission of the sale price, same as all transactions. You just try to factor their costs as part of the amount you negotiate out.

I hope that makes sense, let me know if you have any questions.

Lauren