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WannaBeAMom11
LIF Adult
Member since 1/11 7391 total posts
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Name
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Realtor question - commissions
How does it work if the seller doesn't make any money on the sale. Property is worth 240k sells for 240k. How does the realtor get paid?
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Posted 4/3/14 2:33 PM  |
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Prudential Douglas Elliman Real Estate
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alli3131
Peanut is here!!!!!!
Member since 5/09 18388 total posts
Name:
Allison
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Re: Realtor question - commissions
The seller has to come up with the money for the commission. If the property is sold for the balance on the loan then yes the seller has to come to the table with $$$$.
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| Posted 4/3/14 2:53 PM |
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NYCGirl80
I love my kiddies!
Member since 5/11 10413 total posts
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Re: Realtor question - commissions
It has nothing to do with whether or not the seller is making a profit.
The seller has to pay x% of the sale price to the listing agent, and that is usually split with the buyer's agent. This is determined in the contract the seller signs when listing the house.
Message edited 4/3/2014 2:54:41 PM.
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| Posted 4/3/14 2:54 PM |
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Re: Realtor question - commissions
The realtor gets their percentage regardless of sale price. In your scenario the seller does not break even, she/he takes a loss on the commission.
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| Posted 4/3/14 2:55 PM |
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Ian&EmmesMommy23
My family is complete!
Member since 11/08 12970 total posts
Name:
Diana
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Realtor question - commissions
also...just because they're selling for that price doesn't mean they're not making a profit. They could have paid a lot of their mortgage off...it's how much they owe to the bank.
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| Posted 4/3/14 3:40 PM |
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Re: Realtor question - commissions
Yes, the other posters are right. If a seller can't sell the home for enough to pay off their mortgage and pay the real estate fee, then they have to bring cash to the table. The real estate fee is negotiable, but once it's agreed to in the listing contract, it's the seller's responsibility to pay it, whether or not they wind up selling at a profit or loss.
If a seller is doing a short sale, then the bank will approve the real estate commissions it will come out of the money the buyer is bringing to the table (and the bank will take the rest). Seller walks away with nothing, in that scenario, but also usually gets freedom from the remainder of their mortgage balance (unless the bank makes the seller sign a promissory note for repayment, which is rare).
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| Posted 4/3/14 4:32 PM |
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WannaBeAMom11
LIF Adult
Member since 1/11 7391 total posts
Name:
Name
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Realtor question - commissions
Ok thanks. My in laws are thinking of selling and their house will probably be sold for less than they actually owe so they will have to come to the table with that plus commissions. Ouch.
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| Posted 4/3/14 8:15 PM |
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