Realtors, in a perfect world you would prefer to work with buyers and sellers with perfect credit. But let’s face it—it’s not a perfect world.
A seller with tax problems doesn’t necessarily keep you from earning a commission.
The IRS will permit payment of the expenses of the sale including your commission out of the proceeds at closing.
That said, a problem may arise when a buyer is unwilling to close on property subject to a federal tax lien. It’s possible to have a federal tax lien released or withdrawn prior to listing.
Similarly, a buyer with tax problems doesn’t necessarily keep you from earning a commission.
If you’ve ever worked with a prospect only to discover that they have tax problems, the only sensible action WAS to end the relationship. We suggest you take a longer view. We can work with your prospect to clean up their tax situation, and they may qualify in a matter of months.
As a realtor you know that a borrower with no federal tax lien can get through underwriting much faster.
You’ll be doing a great service for your clients, which will result in more referrals for you—and more closings.
If you have any further questions or if you have any prospects you feel may benefit from our service – please do not hesitate to contact us.
Want to know more? Feel free to schedule a consultation in the right sidebar. —>
John Niemann CPA
Realtors: Before you leave:
Download my special report to learn:
- Why many good leads are avoiding you because the IRS is choking off their ability to qualify for a mortgage.
- Plus learn how you can help these people achieve the dream of homeownership AND increase your commissions and referrals in the process.
