Cash Return

Cash return refers to the net profit that a seller receives after the sales funds go to meet sales expenses and debt obligations. When it comes to property sales, a hierarchy exists to who gets paid first. If a debt exists on the property such as a mortgage or lien, that has highest priority. The real estate professionals and the transaction professionals have fees tied to the transaction. Those fees are near the top of the priority list as well. The buyer provides the funds for the real estate transaction and all priority entities receive their share. Then the seller receives whatever is left over. Some real estate transactions do not give a cash return to the seller. Some are neutral where the seller receives nothing. However, there are times when the seller has to come to the table with money to complete the sales transaction.