Home Selling in West Haven>Question Details

Shoehoard, Home Seller in 06516

Pay realtor commission with credit card?

Asked by Shoehoard, 06516 Tue Mar 8, 2011

Strange question. Gonna take a hit on sale of my house. Got money to cover the $10-15K hit. Not much left over for realtor commission. We haven't negotiated with realtor yet as we just got the CMA today. However, if house sells on lower end of price scale, it will take all of our savings to bring to closing. Can I pay the realtor's commission with a credit card?

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15
I just wanted to add to my original question. I am not doing a short sale. I'm able to make my payments and do not qualify for a hardship. Nor would I want to do a short sale and ruin my credit for a few years. Seems like short sales are really being pushed hard lately. Why? I just want to sell and move back home. Cut my losses. I had an attorney when I bought the house 2.5 years ago but only because it was required for closing. I'm from the south where title companies handle closings. Never had an attorney down there. Up here it seems commonplace. "Contact your attorney..." I don't have one. And frankly the one I dealt with before didn't have time to answer my questions before the closing. Always talked to the paralegal who was very short with me. I know not all attorneys are like that but that was my first experience and it put a bad taste in my mouth. Would love a referral to someone who is willing to go over my options w/out being rude and unpleasant to deal with.
1 vote Thank Flag Link Wed Mar 9, 2011
I would like to help you out with your question, and I'm not sure if you have listed the property yet. However, in CT in the situation you are in you need to hire an attorney to discuss this situation. I hope that you have shared your concern with your Realtor. Remember, that commissions are negotiable, however, also remember we are in business and have overhead as any business. Get a meeting with your attorney, and your Realtor, and come up with an agreement on how to satisfy your listing agreement criteria. Also, ask your agent if his broker can accept credit card payment, but usually it is paid at closing.
Lastly, any good Realtor should be able to answer your questions and uncommon questions like yours may have to go back to the agents broker for clarification. If that Realtor wants to help you, he/she should do whatever they can to help, and will be honest with you about your situation, market your property at fair market value and before taking the listing will know how they will be paid.
I hope this helps you answer your questions, and I wish you a lot of luck.
0 votes Thank Flag Link Wed Apr 6, 2011
We, I think, are 1 of 3 states who use attorneys. I answered your question with the understanding from what you wrote that you hadn't listed? property yet. So how would any of us know you were short. No one should recommend a short since we don't know your circumstances
From your zip, you are in West Haven. Just so you know, attorneys usually give you an up front consultation free,
I have attorneys I can recommend in Fairfield County. I can call one I trust and ask for a referral in your area. Please email me and I can get that info to you. Also, if you have a local bank the manager maybe able to help with a recommendation. Also, your agent can give one as well as the original mortgage broker or any other. Just some thoughts. Any further concerns, please contact me. There is a well known attorney, Gary Seymour in Shelton. His assistant can help you as well. Mention my name.


"Your Beacon to Fairfield County Lifestyles"

Candace Lipira, Realtor
Keller Williams Platinum Properties
203-856-8501 cell
203-544-9786 home
candylipira@optonline.net
candylipirahomes.com
0 votes Thank Flag Link Wed Mar 9, 2011
Shoehoard,

First of all you need to list your home if you want to sell it. Be up front with your agent about the same thing you are telling us here. Have the discussion regarding pricing your property so that you price it with the market. Have the agent do a Net Sheet so you will have an idea of what fees will be included and what your bottom line will approximately be. Do any repairs, paint, caulk, clean carpets, and please remove all the clutter if you have any. No magnets on the refrigerator, no clutter on the counters, no shampoo bottles and stuff in the bathroom. Shoes boxed and orginized :) , when the agent takes photos your home must look very clean and uncluttered. (I'm not implying you are messy, just making suggestions). You should get the most activity in the first few weeks you have it listed, give it the Wow factor.
If you do get an offer, you are either going to accept it, counter or refuse it. You have nothing to lose. But you won't get an offer if you don't list it. If you need funds to close I go along with some of the comments below about using your line of credit on your credit cards. You say you will be moving back home so make paying those charges a priority so you. Let's hope you won't have to do that and get an offer you can work with.

Good luck

Pam Bava
pambava@realteellc.com
Web Reference: http://www.pambava.com
0 votes Thank Flag Link Wed Mar 9, 2011
Also, is anyone familiar with the recent ruling by the FTC. MARS, (Mortgage Assistance Relief Services).
It's federal and it does impact anyone involved in Short Sales, Mods, etc. Parties representing or negotiating for sellers are required to fill out a Disclosure. In CT, CAR just recently emailed all members about this. It does impact Realtors. For specifics, Realtors should contact there State association's attorneys. It's meant to protect the home sellers and buyers.
"Your Beacon to Fairfield County Lifestyles"

Candace Lipira, Realtor
Keller Williams Platinum Properties
203-856-8501 cell
203-544-9786 home
candylipira@optonline.net
candylipirahomes.com
0 votes Thank Flag Link Wed Mar 9, 2011
Have you consider the following options:

1) Short Sale lender approval required
2) CPA for tax write off IF you need to come to closing with money
3) You would have to cash advance you charge cards to pay fees at closing

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Wed Mar 9, 2011
All suggestions are helpful. But if I am correct, based on the fact you just received the CMA, you haven't listed the property. Please run any thoughts you have with attorney you have chosen for the closing before you make any decisions, before you list. It's important you know all your options before you negotiate an offer. Be informed at the outset. Since none of us know your specific financial circumstances, we can't advise you properly.

"Your Beacon to Fairfield County Lifestyles"

Candace Lipira, Realtor
Keller Williams Platinum Properties
203-856-8501 cell
203-544-9786 home
candylipira@optonline.net
candylipirahomes.com
0 votes Thank Flag Link Wed Mar 9, 2011
I know someone who used a credit card to cover the shortfall to avoid a short sale, but they did the cash advance thing as someone mentioned above. All funds incl. commissions are typically given to the attorney who disburses them at closing. I suggest checking with your attorney to see if he or she is set up for CC billing and if attorney and realtor fees can be billed to a credit card in this manner. If your rate on purchases is cheaper than cash advances it might save some money. Also consider a personal loan from a local bank which may have a lower interest rate than a credit card.
Web Reference: http://danburyliving.com
0 votes Thank Flag Link Wed Mar 9, 2011
You could call mortgage company and try to make a payment (time permiting) bringing down the amount you need to bring to closing.
0 votes Thank Flag Link Wed Mar 9, 2011
I am assuming the seller is not doing a Short Sale, but a straight sale, where he will have to bring money to the table? Mac's answer was one good way to bring it off. Closing Company has probably had this question before, I would take my problem to them.
0 votes Thank Flag Link Wed Mar 9, 2011
No. You'll have to bring a certified check to closing, but what you can do is to get a cash advance on your credit card, deposit that to your checking account, and get your bank to issue a certified check. Call them and ask how long it will take for the credit-card transfer to clear.

All the best,
0 votes Thank Flag Link Wed Mar 9, 2011
Shoehoard,
You may be short, but if you can come up with your shortage, you don't need to do a short sale. If you choose to do a "short sale" where the lender pays the fees and settles for less than what is owed you will be damaging your credit and may find out you are on the hook for costs anyway. If it is within your capacity to pay through savings or credit card, it will be a bitter pill but not as poison as a short sale where the bank pays the fees.
Long before our current crisis when values corrected or people had to sell before any equity was accumulated people would sell for a loss and bring money to the table. I doubt your agent can accept a credit card, but Escrow might or you can get the cash advance through your bank.
0 votes Thank Flag Link Tue Mar 8, 2011
The sellers lender (bank) normally pays the Real Estate commissions up to 5% of the NET sale price in most short sales unless they choose not too. For example, if the fair market value is $225,000 and the buyer asks for closing costs to be paid by the seller then the amount of the closing costs will be deducted from the $225,000 and commission is paid on that. Banks usually assume the seller has no money to pay RE fees if they are in a short sale situation.

In all of my short sale transactions as the buyer's agent the bank paid both the Listing agent commission and the Selling agent commission. They changed one deal from a total of 6% to 5% but still paid both commissions. I would check your state to be sure as they may be different there. Good luck.

This is from an article on short sales:

•Short sales are an alternative to foreclosure for homeowners, but if the bank is already prepared to accept a loss on the home, it may be extra stringent about any additional costs. Since the proceeds from a short sale go to the lender and not the seller, the seller is not responsible for paying commission to the real estate agents involved in the sale. Commission is dispensed by the lender and the lender may refuse to allot part of the proceeds from the home to a buyer's agent


Tim V. Johnson
tvjohnson@windermere.com
0 votes Thank Flag Link Tue Mar 8, 2011
You situation is tough, owing more on a home than it is currently worth, but it is very common in today's market.
How you pay the commission and all related fees are coordinated by an attorney at the time of the closing. Many offices are set up to take different forms of payment if needed.
As Philip mentioned below, you should look into all your options before you list your home. A common remedy is a short sale, which is a transaction where a bank may forgive the difference between the current value of your home and the balance owed to the bank. I'd be happy to discuss with you how a short-sale is processed in CT.
I've helped clients on both sides of these short-sale transactions, and depending on your circumstances you may be able to sell your home without dipping into all of your savings. Feel free to email or call me at 203-815-9118.
Good luck with your sale and keep us updated.
Regards,
-Scott

Scott Silverstone, Realtor®
CT Homes & Property
203-815-9118 (Mobile)
http://www.ctproperty.com
http://activerain.com/ctproperty - My Blog
Web Reference: http://www.ctproperty.com
0 votes Thank Flag Link Tue Mar 8, 2011
Hello,

You might want to look at doing a Short Sale first. If your Realtor thinks that it is an option and that with your particular circumstances you can get Short Sale Approval, please consider doing it. If you do not want to do a Short Sale or you do not qualify, provided your listing Broker is setup to accept credit cards for services, I do not see why you couldn't pay with a credit card. However, the listing Broker may charge you a small fee to cover the merchant credit fee if they agree to do this. Please keep in mind though that it could require some paperwork and Escrow instructions to cover a coop commission fee.
Web Reference: http://www.buyvegasnow.com
0 votes Thank Flag Link Tue Mar 8, 2011
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