Who Pays the Real Estate Agent in a Short Sale in Charlotte, NC? 

 July 10, 2021

By  Nancy Braun

Charlotte NC short sales occur when the market value is insufficient to pay off the outstanding amount on a mortgage. With the many costs to take care of during a short sale, it's important to know, who pays the real estate agent in a short sale in Charlotte, NC?

The person who pays the real estate agent in a short sale in Charlotte, NC is the seller. However, the lender covers a part of it through the selling proceeds. Because short sales are intended for troubled homeowners, most sellers cannot offer funds to complete the transaction. So in making decisions and absorbing the costs of selling, the lender acts as the seller.

Short sales are becoming more common as housing prices fall. They are a way to escape an overwhelming monthly mortgage, but they require the lender's willing acceptance of a financial loss. In addition, because they must pay settlement fees, including agency charges, lenders strive to recuperate as much profit as possible from the transaction at closing.

Most lenders mandate that the sellers engage a real estate agent to represent themselves in a short sale. However, a seller may begin a short sale application form with his lender and even advertise the property and make an offer on his own. This means at least one agent will be engaged, representing either the buyer or the seller, or both. Real estate commissions differ depending on the agent or agency, the market, and the area.

Charlotte NC Short Sales

What pays the real estate commission in a short sale? 

A real estate agent's commission is paid by taking a percentage of the property's sale price, although it can also be a flat charge.

The majority of real estate brokers earn money from commissions. These are payments given directly to real estate brokers in exchange for their services in the sale or acquisition of real estate.

The listing agreement, a contract between a seller and the listing broker that describes the listing circumstances, specifies the broker's pay. The broker's commission rate is adjustable.

Commissions typically run from 4% to 6% across the country, though they might be more or lower depending on the market. Unless the buyer and seller agree on a split, the commission is paid by the seller. Due to the greater asking price, the buyer pays at least some of the commission in either situation.

Charlotte NC Short Sale Agent

Do agents get commission on short sale?

The commissions paid by the lender are shared among the agents. The listing agreement specifies how much the seller will pay a buyer's agent and what percentage of the commission the listing agent will earn. For example, agents may agree to a 50-50 split or a commission difference of half to one percent.

Commissions are paid from the sales price by the primary mortgage lender, also known as the first lien holder. Second and third lien holders are usually paid a little sum in exchange for agreeing to a short sale and do not have to pay any commissions.

Charlotte NC Short Sale Agents

How do short sales work in real estate (and what does a short sales agent do)?

The short sale process resembles that of a typical transaction in specific ways. You hire an agent, put your house on the market, locate a buyer, and close the deal. But that's where the resemblances end.

Your agent must also work out a deal with the lender that holds the present mortgage on the property to determine how much money they're willing to lose on a short sale. These discussions begin even before your house is put on the market. They start when your representative approaches your lender to see if a short sale is possible.

Because some lenders would sooner foreclose on a property than approve a short sale, you'll need a professional and top real estate agent in Charlotte, NC, like Nancy Braun of Showcase Realty, to handle these early talks. If the bank makes more money reselling your foreclosed house than they will from the private mortgage insurance payout (for less than your short sale offer), it will take skill to convince them to approve your short sale application.

Charlotte NC Short Sale Realtor

Who pays the difference in a short sale?

The difference in a short sale is paid by the seller. But, this depends on whether the lender will compel the borrower to sign a note to repay the difference.

In a Charlotte, NC short sale, if you have a forfeited your mortgage and cannot make a payment, your lender may agree to let you sell your property for less than the amount owed on it. After the sale, the bank will decide whether to hold you liable for a deficiency.

Lenders may compel the borrower to sign a note committing to repay the discrepancy between the selling price and the mortgage amount in various instances.

Charlotte NC Short Sale Realtor

How to find the right Charlotte NC Short Sale Agent

Selling your home less than what you owe is a frightening financial situation. But, with all the uncertainty that comes with a short sale, it's tempting to seek help from previous agents you’ve worked with in Charlotte, NC.

You won't have the correct help if your favorite agent doesn't specialize in short sales. Many parties are engaged in a short sale, there are various requirements to follow, and several rounds of talks are required.

Only a short-sale expert can effectively negotiate this complicated deal. So the instant you decide that a short sale is the best method to sell your house, you should begin looking for a qualified short sale agent.

An experienced short sale agent in Charlotte, NC, might already have worked with your lender on previous short sales in Charlotte, NC. This offers them a leg up on the competition when it comes to persuading your mortgage company that short selling the house is in their best interests.

The short sale package you'll need to put together to convince the lender that you're unable to pay your mortgage is an essential element of these first negotiations. You'll need to provide all your financial information with your agent, including all those overdue notices and other unpleasant collection documents, in addition to a hardship letter.

Because your short sale agent will be exposed to all the information about your challenging financial condition, you should choose someone you can trust. The problem is that short sales aren't as popular as they once were, so finding a specialist can be difficult.

Creating a list of competent applicants is the first step in finding the proper short-sale specialist for you. Then it's only a matter of selecting a dependable agent that makes you feel at ease and can answer all your queries.

Why choose Nancy Braun and Showcase Realty for your short sale transaction?

A well-respected agent will work well with other buyer's agents and put buyers at ease enough to write a short sale offer. The most crucial reason, though, why a short sale agent with experience in your community will be helpful is that the agent will most likely guide you in pricing the short sale.

A short sale agent in Charlotte, NC, like Nancy Braun, is built with her years of experience. Nancy is a successful leader who is committed to her work with Showcase Realty. Her mission is to provide the best possible real estate service to her clients. We want to assist you with your Charlotte, NC short sale. For further information, call 704-997-3794.


  1. https://thebalance.com/hiring-the-best-short-sale-agent-1799146
  2. https://www.ylopo.com/blog/top-qualities-to-look-for-in-a-short-sales-agent
  3. https://www.investopedia.com/articles/personal-finance/080714/how-do-real-estate-agents-get-paid.asp
  4. https://pocketsense.com/pays-commission-short-sale-9116.html
  5. https://www.homelight.com/blog/short-sales-realtor/
  6. https://www.investopedia.com/articles/personal-finance/080714/how-do-real-estate-agents-get-paid.asp
  7. https://www.realtor.com/advice/sell/what-is-a-short-sale/
  8. https://www.natlbankruptcy.com/how-is-a-short-sale-different-from-a-foreclosure-2/
  9. https://www.thebalance.com/how-to-choose-a-short-sale-agent-1799182
  10. https://pocketsense.com/much-agents-pay-mls-listings-8016319.html

In case you cannot view this video here, please click the link below to view Who Pays the Real Estate Agent in a Short Sale in Charlotte, NC? on my YouTube channel: https://www.youtube.com/watch?v=rvAbgy53YuI

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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