You found your dream home and bought it. You knew that the housing market was booming, and the home was priced higher than it should have been. However, none of that mattered when you thought about your future life in this perfect house. Then life happened, the market changed, or you pulled out equity to pay off bills sand now you owe more than what the house is worth. You aren’t alone; just over 16,000 homes in Portland are in this situation.
It can be tough to find home buyers in Portland that are willing to work with you. These six methods will help you sell your home with little or no equity.
1. Short Sale
Do you owe more than the market value of your home? The most common answer for this is a short sale. You and the lender agree to sell the house for less than the outstanding debt on the mortgage. The lender agrees to take a loss, and you get to save your credit. While a short sale isn’t great, it’s far less damaging than a foreclosure. This helps you to have a better ability to buy another home in the future. Be careful to get your short sale agreement in writing with your lender. Otherwise, they may not accept the sale as the satisfaction of your loan. You could end up still owing despite selling the home.
2. For Sale by Owner (FSBO)
Most homeowners do not have experience buying and selling real estate. It makes sense to hire a real estate agent in these situations. However, savvy and experienced homeowners may not need this extra assistance. Selling your home on your own helps you save money by reducing costs and maximizing profits. This is especially true if you already have a buyer interested. Then it’s just a matter of paperwork. It’s wise to hire a real estate attorney or title company to assist with preparing the required paperwork.
The drawback of this method is that it can take a long time to find a buyer. You’ll need to prepare your home by making necessary repairs, cleaning, and staging. Then market your property, host showings, and essentially take over the tasks that a realtor would do. If you are facing closure, you may not find a buyer willing to pay your asking price fast enough to save your house from foreclosure.
3. Sell Through a Realtor
Selling your home is stressful, and you’re probably dealing with a lot if you’re selling a home without any equity in it. Working with a real estate agent gives you peace of mind and expert guidance. There’s a problem with this option. Agents have fees, and these take away from the profits and are paid from the equity you have in your house. You need these profits to pay off the mortgage, which is already a challenge with the reduced selling price. If you don’t have any equity in your house, you would need to pay for all the closing costs and realtor fees 5% – 6% of the sale out of pocket and bring that to the table when you sell.
4. Find a Local Home Buying Company
So far, the options you have available to you are realistic, but each has its drawbacks. This next option combines the best features of the previous possibilities while avoiding their drawbacks. When you sell to a local private home buying company like Shona Buys Houses, you can do everything yourself without the need for a real estate agent. We have the experience and financial backing to act quickly, making them a great option if you are telling yourself, “I need to sell my house fast.”
For example, you could work with Shona Buys Houses. You start the process by requesting a fair, no-obligation offer and receive a response within 24 hours. If you decide to accept the offer, you can pick your closing date. Close on the sale of your home when it fits your schedule. Thanks to our experience and knowledge, the team at Shona Buys Houses can guide you through every step of the process. What’s nice about working with a local home buying company is that they work with you to find a customized solution for your needs. It isn’t a problem if your home needs extensive repairs or maintenance.
5. National Home Buying Services
Similar to individual investors, there are national home buying services that will purchase your home without equity. There are some significant differences between local investors and national house buyers. Be careful with a national service as they tend to make noticeably lower offers than market value. You may not be able to negotiate for a reasonable sale price.
6. Sell Your House on a Lease-Option
In this option, you agree to lease your house out to a tenant-buyer in what is commonly known as a “rent-to-own” agreement. There are many benefits. There is greater tenant responsibility because the tenant-buyer will take care of all repairs. You get to just walk away from your house and not worry about any repairs, and your mortgage will be paid. You also get a monthly payment above your monthly mortgage payment, and the tenant has the option to buy the house at the end of the contract for a pre-arranged sale price. You save money on realty fees and don’t need to make any repairs or get the house ready to show.
Work with Home Buyers in Portland
Selling your home doesn’t have to be a long and drawn-out process. You don’t have to let a lack of equity stagnate the process even further. Consider one of these six options when selling your home without equity. Perhaps you’re facing a possible foreclosure, and a quick sale is a solution. Working with a local investor like Shona Buys Houses can help you get out from being underwater on your home that’s now worth less than what you owe.