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Do Charlotte, NC Realtors Get Commissions on Short Sales? 

 September 15, 2021

By  Nancy Braun

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!

Short Sales in NC

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:

  • Less damage to a homeowner’s credit score and credit report
  • Easier to apply for a mortgage and buy a new home in the future
  • Borrower can stay in their home until the sale is complete
  • Lender or bank covers the cost of commissions
  • Allows the borrower the dignity of selling their own home

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.

Charlotte, NC Realtors Commissions on Short Sales

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:

  • The property is sold at a higher sales price than the lender or bank required
  • The listing agreement states a higher commission

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:

  • What percentage the listing agent will receive
  • How much will be paid to the buyer’s agent

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.”


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:

  • There’s enough equity to allow your home to go on sale
  • They’ll be able to break even with a foreclosure

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:

  • Your personal hardship letter
  • Financial statement
  • Authorization to release information
  • Listing contract
  • Bank statements from the past two months
  • Two of your most recent tax returns
  • Two of your latest pay stubs

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.

Best Charlotte, NC Realtor

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.

By trusting us at Showcase Realty, we’ll make sure to:
  • Go through your letter of authorization and legal documents
  • Contact your lender on your behalf
  • Prepare a bona fide sales contract between seller and buyer
  • Help you assemble a comprehensive short sale package
  • Negotiate a fair settlement and close the sale
  • Prepare liability waivers

Final Thoughts

With everything I learned from Advance Mortgage Education and my 20+ years in the real estate industry, I want to assure you that we’ll simplify  all the complicated and frustrating steps to Short sales. The whole process typically takes about 40 to 60 days on average, longer on some occasions.

We’ll cut right to the chase with our very own revolutionary steps to the short sale process. At Showcase Realty, we have a track record of selling homes 24% faster than the average agent.

We’ll make sure to be by your side from the moment you prepare your authorization letter, up until your loan status closes.

We at Nancy Braun Realty promise to make your short sale experience 100% positive!

Nancy Braun


Call me, Nancy Braun, at (704) 997-3794. Let’s talk about your needs and wants in a home.

Nancy Braun

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