Why Would a Seller Need to Pay to Sell?
· Unexpected Home Repairs
Few transaction close until the buyer has completed their home inspection. Home inspections and termite inspections can uncover undisclosed problems or deficiencies in a house that run into thousands of dollars to repair. What can begin as a simple repair job can expose other problems when walls are opened up or roof shingles are removed.
Few transaction close until the buyer has completed their home inspection. Home inspections and termite inspections can uncover undisclosed problems or deficiencies in a house that run into thousands of dollars to repair. What can begin as a simple repair job can expose other problems when walls are opened up or roof shingles are removed.
· Not Enough Equity.
If you have owned your home less than two years and you took out a mortgage that was greater than 90% of the purchase price, it is likely you don't have enough equity to pay closing and selling costs. These costs 8 to 10% of the sales price.
If you have owned your home less than two years and you took out a mortgage that was greater than 90% of the purchase price, it is likely you don't have enough equity to pay closing and selling costs. These costs 8 to 10% of the sales price.
· Declining Real Estate Market
Maybe you have to sell in a declining market, which would mean your house might not be worth enough to generate money upon selling. Real estate market cycles can make markets move down as well as move up. Not every home will appreciate every year.
Maybe you have to sell in a declining market, which would mean your house might not be worth enough to generate money upon selling. Real estate market cycles can make markets move down as well as move up. Not every home will appreciate every year.
· Community Values Change
Sometimes external factors or nearby Plano Foreclosures can affect property values. When new subdivisions are built close by and the houses are offered for less, buyers will generally gravitate toward the new houses, avoiding slightly older homes. New commercial developments change the value of surrounding homes. Sometimes homes with views lose those views when high-rise buildings are constructed near existing housing.
Sometimes external factors or nearby Plano Foreclosures can affect property values. When new subdivisions are built close by and the houses are offered for less, buyers will generally gravitate toward the new houses, avoiding slightly older homes. New commercial developments change the value of surrounding homes. Sometimes homes with views lose those views when high-rise buildings are constructed near existing housing.
· Some Sellers Access Their Retirement Accounts or Borrow From Family Members
Sellers who are on the short end of the stick must bring a check to closing. A man in Dallas used a home equity loan against his home to help make her mortgage payments. When he could no longer afford to make the mortgage payments, he bought another home with 100% financing. He then rented his condo and put it on the market. His tenant was uncooperative and made it difficult for the man's agent to show the house. The tenant had to be put out of the house. Faced with falling prices, this seller was going further into debt every month. He finally had to face the fact that if he wanted to sell his house and not lose it through a foreclosure sale, he would have to bring money to the table to close the sale.
Sellers who are on the short end of the stick must bring a check to closing. A man in Dallas used a home equity loan against his home to help make her mortgage payments. When he could no longer afford to make the mortgage payments, he bought another home with 100% financing. He then rented his condo and put it on the market. His tenant was uncooperative and made it difficult for the man's agent to show the house. The tenant had to be put out of the house. Faced with falling prices, this seller was going further into debt every month. He finally had to face the fact that if he wanted to sell his house and not lose it through a foreclosure sale, he would have to bring money to the table to close the sale.
· Some Sellers Choose to Bite the Bullet
A seller in Fort Worth contacted me recently to ask if her Realtor was telling her the truth when she suggested she bring in money to close his sale. This seller's best financial move may have been to stay put and not sell. She already owned a home; she wasn't a renter trying to become a first time home buyer. The seller insisted on selling because she no longer liked her neighborhood or any of her neighbors. Out of all the houses in his neighborhood, she was the only owner occupant left. The rest of the houses were rentals, which lowered values. She decided that it was worth it to spend $25,000 to get out of that neighborhood and into a more desirable area.
A seller in Fort Worth contacted me recently to ask if her Realtor was telling her the truth when she suggested she bring in money to close his sale. This seller's best financial move may have been to stay put and not sell. She already owned a home; she wasn't a renter trying to become a first time home buyer. The seller insisted on selling because she no longer liked her neighborhood or any of her neighbors. Out of all the houses in his neighborhood, she was the only owner occupant left. The rest of the houses were rentals, which lowered values. She decided that it was worth it to spend $25,000 to get out of that neighborhood and into a more desirable area.
· For Some Sellers a Short Sale May be the Answer
Most lenders will agree to a short sale. Lenders have specific requirements that will persuade a lender to forgive mortgage debt. A seller in Frisco Texas had no liquid assets, no income and had refinanced his house for more than its market value. He found out that negotiating a short sale with his lender meant he could walk away from the house without getting a foreclosure on his record.
Most lenders will agree to a short sale. Lenders have specific requirements that will persuade a lender to forgive mortgage debt. A seller in Frisco Texas had no liquid assets, no income and had refinanced his house for more than its market value. He found out that negotiating a short sale with his lender meant he could walk away from the house without getting a foreclosure on his record.
Every home selling situation is different. Sellers who find themselves in financial difficulty should first talk to a legal, financial adviser or a CPA to help them weigh the pros and cons of bringing cash to close the sale of their home.
