Short Sales - How Does Commission Work?

Short sales are a process that many people are not familiar with. With this type of transaction, you can actually move the house for less than what you owe against it. In order to complete a short sale transaction, you will need to have an accepted offer from a buyer and then have the lender sign off on it.  They may not always agree to it. If they do agree to the offer and the deal goes through, the commission on the sale is done a little bit differently than the usual transaction.

Lender Pays

The lender that is involved in the transaction is the party that will pay the commission on the sale. In a way, it comes out of the purchase price, meaning technically the home buyer pays for the commission. However, the one that actually pays the real estate agent that was involved is the lender. The commission will often be a little less than a typical real estate commission, but it will still be competitive. 

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