Conventional wisdom in the real estate industry indicates that homeowners who have mortgages and have only lived in their properties for a year or two shouldn’t sell because they won’t have enough equity to cover closing costs. Thankfully, this isn’t always the case. In some circumstances, homeowners with little or no equity can still expect to make a little money, or at least break even.
What Exactly Is Equity?
The term “equity” refers to the part of a home that homeowners who have mortgages actually own. It’s relatively easy to calculate, too. Just get a ballpark figure for the home’s market value online using a home value estimator, then subtract the amount of money still owed on the mortgage to figure out how much equity the home has.
Reasons to Sell with Little to No Equity
There are plenty of reasons to sell a home that has yet to build much equity. Some homeowners who take this route are facing foreclosure, while others are going through probate. Families that plan to move out of state often have no choice but to sell at a loss, but it isn’t the end of the world.
How to Determine Costs
Determining how much it will cost to sell a home with little equity is relatively easy. Take the equity calculation determined above and compare it to the costs of selling, which may include real estate commissions, transfer taxes, moving costs, and legal fees. Homeowners can also find a we buy houses company instead of finding an individual buyer to help cut down on costs.
How to Prepare
Homeowners should make sure they’ll get as much as possible for their properties by performing some routine tasks like deep-cleaning their houses and tackling minor home improvement projects. This will help to ensure that they get the best deal possible for their homes, often allowing homeowners who would otherwise lose money on the sale to break even. Those who are selling under duress may not have the money to hire contractors or perform full renovations but they can usually do a little bit of basic work on their homes themselves.
Choosing a Closing Date
Whether homeowners have found individual buyers or they’ve opted to go the easier route and enlist the help of a cash home buying company, they should make sure to choose a closing date that works for them. Plan to have everything moved out of the house in advance and don’t be scared to set a firm closing date. Once someone has made an offer, he or she will almost certainly be willing to wait an extra week or two to close.
Get More Information
Want to find out about options? Head to MDWVHomebuyer.com to learn about one West Virginia home buying company that is committed to offering homeowners with any amount of home equity the best solutions to meet their needs. They make quick cash offers on houses in any condition and charge no fees or commissions, so there’s nothing to lose.
Visit https://www.wepaycashclosequick.com to get started today.
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Website: MDWVHomebuyer.com