Realtors
Reverse Mortgage Benefits for Your Client and You
Cash buyer = Lower commission and more $ out of buyer’s pocket
Example: Your clients are moving out of their family home in Los Angeles now that the kids are grown. They will net about $700,000 when they sell, and want to buy a retirement home in San Diego with the profits.
Scenario 1 – Typical all cash sale with limited search area
$ 700,000 sales price X 2.5% commission =
- $17,500 gross commission to you.
- All $700,000 of buyers profits used for purchase.
Or
Scenario 2 – Using a Reverse Mortgage to maximize their purchasing power
$ 900,000 sales price x 2.5% commission =
- $ 22,500 gross commission. An extra $5,000 to you with more homes to search from !
- $550,000 of buyers profits used for the purchase + $350,000 reverse mortgage proceeds
- Buyer also puts $150,000 cash in pocket for reserves from sale !!
(Reverse mortgage proceeds are based on the youngest borrowers age. Assumption above is
75 years of age at closing)