A lot of people worry that selling a house with a mortgage will turn into a huge financial loss for them. While changing market conditions can make that possible, it’s not the most likely outcome.
In reality, selling your home with a mortgage is something people do every day. Of course, there is always the question of how to sell a house. Fortunately, you can find real estate professionals who can help with selling your home.
If you’re thinking of selling your home with a mortgage, here are five things you must do.
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Watch the Market
Local real estate markets fluctuate just like regional markets. You don’t want to sell your home during a low point in the local cycle. If you can wait on the sale, wait for the market to pick up in your area since you’ll command a better price on the house.
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Get in Touch with Your Mortgage Lender
Lenders understand that people will sell their homes before they pay off the mortgage. What you need from the lender is the payoff amount of the mortgage. That’s a precise figure that will typically hold true for two to four weeks.
That figure will change over time. If your home stays on the market for more than a month, you’ll want an updated number from your lender.
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Get a Real Estate Agent
There are a lot of hoops involved with selling a house. While a homeowner can take them on, it’s almost always more efficient to let a real estate agent deal with them.
Ask around about which agent other people used when selling a house. It’s a solid strategy for getting referrals to good agents.
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Set the Price
Setting the price when selling a home with a mortgage is a little different than setting the price for a home you own outright. You must set your selling price high enough that it covers all of the closing costs, pays off your mortgage, and ideally nets you a profit.
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Check All Your Options
The longer you pay on a mortgage, the less you owe. If you’re 20 or 25 years into a mortgage, you can look for other options than a regular sale.
If you just want out of the house or the area, you can look for a cash for houses company. They can often make an offer that’ll settle the mortgage and leave you some cash.
Selling a House with a Mortgage Can Work
Selling a house with a mortgage can work out. In fact, it does work out for millions of people every year. It just takes a rational approach.
Put your home on the market when the market picks up. Get specific numbers from your lender about the payoff amount. Get a real estate agent to help you deal with the hoops, like listing the house or dealing with showings.
Keep your options in mind. Traditional sales aren’t the only way you can offload a house.
Looking for more real estate tips? Check out the posts in our Real Estate section.
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