I often get asked by sellers “What will it cost me to do a short sale on my home?” “How much are the closing costs and commissions I will have to pay?” When a seller is facing distress and needs to do a short sale these costs are obviously a big concern.
In a short sale all the cost of selling the property including real estate commission, title and escrow fees, HOA transfer fees, and taxes are TYPICALLY paid from the proceeds of the sale. If you take the sales price and subtract all these cost you get a number referred to as NET PROCEEDS. The net proceeds is the amount the the lien holder agrees to accept when approving a short sale.
Sellers will need to ensure that their HOA dues, taxes, insurance etc. are current. If these items are not current there may be some cases where the seller would have to pay to bring these current. In Nevada, State law requires the seller to provide and pay for the HOA resale package that is provided to the buyer. In some cases the HOA requires upfront payment. In this case the seller may have to come out of pocket for this fee as it will not be able to be billed to escrow. These fees are typically $100 – $300 but vary by HOA.
Sellers choosing to use an attorney instead of a REALTOR to negotiate a short sale for them may incur upfront and monthly retainer fees. REALTORS are not allowed to charge up front fees, they only get paid when your short sale closes.
If you have been considering a short sale, call me today and I can give you more information about the short sale process.