What Fees are Associated with Doing a Short Sale?

Fees Related to the Sale

When you are doing a short sale transaction, there may be fees the bank is unwilling to pay. A good example of this would be past due HOA (Homeowner’s Association) fees. In a case such as this, the HOA will have put a lien on the property to collect the past due payment amounts. All liens must be cleared before the property can be sold. If the bank refuses to pay – then someone, whether the buyer, the seller, or both, must pay in order to clear the lien.

Questions can be asked and research conducted very early in the process to determine if these types of challenges exist.

Commission and Fees

In a standard real estate sale, the seller is commonly responsible for the commission payment to the Broker which is shared with the Buyer’s Agent’s Broker. In a short sale transaction, it has been established that the seller cannot pay closing costs and therefore the bank is forced to cover the cost of the real estate commission.

Our fee for managing a short sale real estate transaction is 6% of the total sales price of which 50% is provided to the Buyer’s Agent. In addition to the sales commission, a Short Sale Administration fee of $495.00 is applied to administrative expense and extra expenses incurred within the short sale operation.

 

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About Toni Hedstrom

I am one half of Hedstrom & Stamm Home Solutions, a dynamic real estate team with emphasis on home marketing utilizing our exclusive Home Ready Program.