Does A Short Sale Cost Me Money?
Does it cost money to short sell your house? It certainly does in a regular sale.
Let’s explore a short sale vs normal resale and find out if a short sale will cost you money.
In a regular sale (WA state), the typical charges would include: 6% commissions to agents, 1.78% excise tax and 1.25% for title & escrow. Seller would incur these expenses.
How about house repairs? After you get mutual acceptance on a purchase and sale contract, you typically go through an inspection contingency period where the buyer orders an inspection for your house. Once the inspection report comes in, the buyer and seller negotiate items that need repair prior to the acquisition of the house. This could cost anywhere from $100 to thousands, even tens of thousands depending on the condition of the house. What is the condition of your house?
How about in a short sale? Do sellers have to pay in a short sale?
The answer: Typically, NO
It is the lenders and buyer who pay the real estate associated fees. The concept is simple, would you kick a dead horse? At the same time, would you request money from a borrower who has no money?
In the inspection period, the house is typically sold in “as is” condition and it being a seller’s market, buyer’s typically do not repudiate that.
Are you waiting to break even?
Many homeowners believe that breaking even means: property value – balance owed = $0
This isn’t necessarily true. You must factor in the real estate costs involved in a transaction. Rounding up, I would add about 10%.
How much does short sale negotiations cost? Does the seller have to pay this?
A great negotiator should be free to you and your agent. They will get their expenses covered by the buyer or lender.
Our short sale team and negotiators have closed hundreds of successful short sales for many years. The majority of our homeowners have walked away from their underwater house with little to no liability and at no expense to them whatsoever.
If you are interested in short selling your house, call our Washington state experts here and we will get in touch with you within 24-48 hours.
Hope this helps