Agents may agree to a 50-50 split or a difference of usually one-half to 1 percent in commissions. The primary mortgage lender, or first lien holder, pays commissions from the sale proceeds. Second and third lien holders typically receive a small amount to agree to the short sale and do not pay any commissions.

How can a buyer’s agent assist the buyer when a seller is asking for an inflated price for a property?

How can a buyer’s agent assist the buyer when a seller is asking for an inflated price for a property? Act as a negotiator. This is a nonexclusive agency contract between a buyer and a broker and only the broker who actually locates the property that the buyer eventually purchases is entitled to the commission.

Can the seller make money on a short sale?

Negatives of Short Sales to a Home Seller A short sale means they won’t earn any profit from the sale of the house – the bank or mortgage lender gets all the sales proceeds.

What is a short sale negotiator?

A short sale negotiator works on behalf of a seller to reach a short sale approval with a bank or other lender. The individual’s job is to persuade the lender to agree to accept less than the debt owed on the mortgage in order to allow the short sale to occur.

How is a house sold in a short sale?

Some houses were repossessed by lenders, but the “lucky” ones (if you could call them that) were able to get out of trouble with a process known as a short sale. In a short sale, the house is sold for less than what is owed on the owner’s mortgage, hence the term “ short .”

Who is the best buyer for a short sale?

As a buyer or seller you’ll want to work with one who has experience in getting these complicated deals done. Short sales are so fraught with missteps that many never get to the finish line.

How often do short sales close in Massachusetts?

When short sales were in their heyday a decade or so ago, for example, Massachusetts buyer-broker Sam Schniederman found that only 30 to 50% of those in his home state actually closed, depending on the community. “There’s this excitement, this fantasy about short sales, because they appear to be good deals,” Schniederman said at the time.