do a real estate commission will be paid if a home has a second mortgage that wont be covered on sale?
Sunday, 1. August 2010
if a house with a first mortgage of lets say 0,000 and a second of 0,000 sells for only 0,000 will the commission still be paid even though the selling price wont cover the both mortgages? The second mortgage is tied up to another 2 properties however and they are still owned by the same person.
real estate guy Says:
WTF. Of course. your problems and mismanagement is NOT the problem of the agent you hired to sell your house. They did their job and should be paid for it. The commission is based on the sales price, NOT the amount owed.
Rick B Says:
Of course. The realtor has nothing to do with the details of the financing. Of course, the house can’t be sold unless that title is cleared up. You can’t sell a house with an outstanding mortgage.
falsifiable Says:
Real estate commissions have nothing to do with the number of mortgages on the home. As the seller, you negotiate the sales commission up front with the listing agent. The commission is a percentage of the total sales price, typically 5 to 7%.
If the agent brings you a full-price offer that you agreed to when you signed the listing contract, you owe that agent the full commission, whether or not the sales prices pays off your mortgages. You should have discussed all of this with your agent.
Steve D Says:
Real estate commissions have nothing to do with financing or mortgages – they are based upon the sales price of the home being sold. If the seller is able to negotiate with the holder of the second mortgage to somehow get the lien released and have the sale go through, at closing the real estate agent will get their commission based on the $400,000 in your example..
Ryan Says:
Unless you have 1 Million in the bank. Why the hell are you looking at 300-400K homes?
I’m 34, married, and have no debt. My wife and I both own our cars but we can’t start a family because we are living in a condo that is 50K underwater. The money we have saved for 20% down on a house will be used at closing of our condo so we can break even. So, I did everything right and I still loose. Thanks for nothing baby boomers! Face it people unless you are part of the ‘Ruling Class’ you loose. ps our house hold income is 120K!