Tips For Selling A House Without Home Equity


Selling your house can be a complicated affair. The process can be more difficult if you owe more on your mortgage than the price your house is currently valued at. One of the biggest advantages you can have when selling a house is equity. If you don’t have equity, you may be subject to long delays in the selling process and you can be overwhelmed by the situation. Here are some tips to sell your house without equity.
Selling Your House
Selling Your House

Short sales
The most commonly used way for homeowners who owe more than the value of their home is to go through a short sale process. This is sometimes known as a compromise sale and it may occur if the owner and lender agree to sell the house to avoid a foreclosure. The bank must agree to incur a loss on the sale in writing for this to happen. A short sale is one of the best tips for selling your house without equity as it will be less damaging to your future home buying ability and credit.
For sale by owner
It is recommended to use an agent to sell your home but a lot of people are savvy enough to sell a house without using a real estate agent. Selling your house by owner can help maximize profits and reduce costs. If a buyer is interested, it may make sense to hire a lawyer for less if the work of the broker is going to be paperwork.
Sell to an investor
Selling your house without equity to an investor can also be a solution. A lot of companies buy properties with limited equity. Investment companies look for houses with reduced after repair value. These sales feature a purchase of 60% or even less of the ARV calculation. However, this is negotiable and the home seller will have the final say on whether to sell their home.

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