If you are a homeowner in Escondido, San Marcos or beyond who needs to sell, and if you owe more to the bank(s) than your property is worth, than you may need to participate in a short sale. In a short sale transaction, your real estate agent or a designated negotiator will negotiate with the bank(s) to forgive the difference between what you owe and the buyer's purchase price.
Homeowners who are "Upside down" commonly ask, "How much does this cost?"
Surprisingly, the answer is "Absolutely nothing."
Homeowners become very surprised and dubious when they hear this response, but the explanation for this is very simple.
In a traditional real estate transaction, the seller pays the Realtor® a commission to sell the property. If another Realtor® represents the buyer, then that commission is split in half (each side earning have of the commission). For example, a seller in a traditional transaction (not a short sale) may agree to pay a 6% commission. 3% of this commission would be allocated to the selling brokerage, and the other 3% to the listing brokerage.
In a short sale, the seller will net no proceeds from the transaction. So, the bank (the same bank that agrees to the short sale) pays the commission to the Realtors®. Simple, right?
Sometimes, however, there may be small fees associated with the transaction that a seller may need to pay. These fees could include HOA transfer and document fees, a home warranty for the buyer, etc.
Even though the short sale is "free" to the seller, it is still imperative that you choose your listing agent wisely. Ask them important questions about the short sale process: How many short sales have you negotiated before? With which banks have you negotiated? What is your success rate with (your bank)?
Our office has a 99.99% success rate in obtaining approval letters. We have closed countless short sales, and have worked with all of the major lending institutions.
Some folks say "You get what you pay for." However, this adage may not apply to short sale listing agents. While there is no fee for the service, be absolutely sure that your agent is qualified to help you. You've got a stressful situation on your hands, and you DO NOT want to leave it to the inexperienced!