The process of selling a home is often drawn out and extremely complicated. It becomes even more challenging if the seller of the property currently owes more on their existing mortgage than what their home is worth. When selling a home, equity is one of the biggest advantages property owners can have.
If there is no equity in a home, the homeowner may face lengthy delays in the process and may wind up overwhelmed and frustrated due to this difficult situation. They may also be faced with the fear of foreclosure. However, there are options. Keep reading to learn what these are.
Before diving into the options, it’s important to fully understand what equity is and why it matters. Home equity is the amount of money an owner has after they subtract the amount that’s unpaid on their home from the market value. Equity goes up as the debt on the home is paid down and if a home appreciates in value. Even without equity, if an owner is trying to sell, there are options, such as using a we buy houses company.
Sell Through a Realtor
A good option for this situation is by using a professional intermediary to help with the process. The agent is a smart choice and one that’s most commonly used by homeowners. The main challenge associated with this selling method is all the fees that are associated with the sale. The reduced selling price along with the cost of paying the loan is often a problem. Some agents request as much as six percent of commission. This eats into any profits that may be received.
Consider a Short Sale
Another option for selling a home with no equity is to choose a short sale. Sometimes this is called a compromise sale and occurs when the owner and lender agree to sell the home to avoid it going into foreclosure. If a person wants to go this route, the bank has to agree, in writing, that they are willing to take a loss on the sale. Usually, short sales have a better outcome than a foreclosure because it won’t be as damaging to the owner’s credit and their ability to buy a home in the future.
Sell to an Investor
When there is no equity in a home, it may be possible to sell the home to an investor, such as the team at Sell Now Oklahoma. These companies or individuals are willing to purchase property without any equity, but the catch with this is that the seller may have to reduce their asking price.
Each of the options can help a person who is struggling to sell their home because it doesn’t have any equity, or because it has very little equity. However, selling to a “we buy for cash company,” such as https://www.sellnowoklahomacity.com/ is a great way to sell quickly for cash. However, each person needs to carefully evaluate their options to find the one that best suits their needs and their time frame.
Company Name: Sell Now Oklahoma
Contact Person: Owner
Email: Send Email
Address:PO Box 720804
City: Oklahoma City
State: OK 73172
Country: United States