Do Charlotte, NC Realtors Get Commissions on Short Sales? 

A short sale may be your saving grace when it comes to avoiding foreclosure. When done right, you’ll be able to satisfy your mortgage, too!

Charlotte NC realtors get commissions on short sales which the bank or lender pays as part of the sale proceeds. 

Hi! My name is Nancy Braun, your designated Certified Short Sale Seller (CSSS) in Charlotte, NC. 

Charlotte, NC short sales–– they’re complicated stuff! I’m excited to help you make the right decisions about your home that will guarantee a fresh start for you. Mortgage-free, of course!

Now, let’s discuss all your burning questions about short sales and hiring a real estate agent who can help!

Are Short Sales Worth It?

Short sales are worth it if you have plenty of money and time. A short sale is when your home is offered for sale for less than its market value. So, it prevents you from covering your total mortgage balance and can only be done if your lender agrees to accept that balance.

However, sellers are often pushed into a short sale because of financial troubles that make it impossible to pay for their monthly mortgage. They might also find it difficult to sell at a price that’s enough to pay off their entire loan.

While short sales aren’t ideal, they prevent borrowers from resorting to drastic measures like foreclosure.

How Do Sellers Benefit From Short Sales?

Here’s why a short sale can be more beneficial than a  foreclosure:

Do You Need a Realtor for a Short Sale?

If you’ve decided that a short sale would be beneficial, you might have another question on your mind. 

You might be debating whether or not you need a realtor by your side. Will you be able to afford all the commissions and closing fees?

Before we help you with that question, remember that short sales are often a long and frustrating process! 

You do need a realtor for a short sale as mostly, you’ll be dealing with a lot of lowball offers. The first offer will likely be way below the list price, so you will need to be an expert negotiator! You’ll also have to deal with a lot of complicated paperwork.

A licensed realtor and Certified Short Sale Seller (CSS) like myself will help you make the right decisions for a dignified deal.

Want to understand why using a realtor is important? Check out our article for insights: https://shortsaleadvisors.us/why-use-a-realtor/

Do Agents Get Commissions on Short Sales?

Agents are typically paid up to 4% to 6% in sales commissions for a short sale.

A realtor may be given a higher commission if:

However, such cases of paying a higher commission are not common.

Who Pays Real Estate Commissions in Short Sales?

You might be thinking if hiring a realtor is worth all that money.

Before you shut down hiring a realtor completely, here’s what you should know:

Short sales work a bit differently than your typical real estate sale. Most of the time, sellers cover all real estate agent commissions and other sale and closing costs. 

By going with a short sale, the bill will become the lender or bank’s responsibility. In a short sale, the seller pays nothing.

The primary mortgage lender (the first lien holder) covers commissions from the sale proceeds. Second and third lien-holders usually get a small amount to agree to a short sale and don’t pay any commissions.

In a short sale, lenders base the maximum commission fee on what is considered “reasonable and customary” for the current market.

How Are Agents Paid in a Short Sale?

Realtors split the commission paid by the lender.

Always go back to the listing agreement. There you will find:

An agent usually agrees to a 50/50 split or a difference of 0.5 to 1% in commissions.

Lenders will typically lower the commission when one agent represents both the seller and buyer, called a “dual agent.”

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How Do Realtors Deal With Short Sales?

Just to give you an idea, here are the steps to how a typical real estate short sale process goes. At Showcase Realty, we take revolutionary steps to make the process efficient and successful.

Step 1: Acquire Property Valuation Analysis

Lenders aren’t likely to approve of a short sale if:

As Charlotte NC short sale agents, we understand that this first step is critical.

A lender is more likely to come to a price agreement if you get proof of value with a comparative market analysis (COA) or a broker’s price opinion (BPO). 

This is if the home’s value is close to the mortgage balance. Otherwise, it will be difficult to convince your lender if the house is worth a lot more.

Step 2: Demonstrate Financial Hardship

Once you’ve displayed difficulty paying your mortgage or you can no longer pay due to a job change or illness, you need to demonstrate financial hardship by presenting official documents.

Your lender will need to check financial records that support that it’s impossible to recoup the mortgage with a regular sale. 

Typically, you’ll be asked to present:

Other times, your lender may demand additional supporting documents. You can rest easy, though. Our team at Nancy Braun Real Estate will get a complete list of requirements so we can push through with your short sale request.

Step 3: Get in Touch With a Charlotte NC Short Sale Realtor

You will need the guidance of a Certified Short Sale Seller like myself to deal with such a complex transaction.