This is the question that sometimes sellers ask when they are selling their home. A lot of sellers want to know the golden question. Home much do I make? We are going to answer a few questions that sometimes people have when it comes to selling their home.
How Much Will I Get When I Sell My House?
Answer: Selling a house can be a time-consuming process. However, when you have the right procedures and the right team in place it can make a big difference and ease your stress level when you are selling your home.
A variety of factors determines housing value. They include property location, if the home is ready for relocation or has recent upgrades, inspection reports, and comparable properties in the neighborhood, appraisal value, proximity to infrastructure and the economic indicators.
How much will I get when I sell my House?
Remember property values are different from state to state. Each state is different. But remember values are determined when the buyer decides to make an offer price on the house and the seller accepts the price.
Or normally when a seller counters the buyer’s offer and the buyer accepts the seller’s price.
That’s what truly determines that value of what the house is.. It is what someone is willing to pay for the home.
Once this happens the Appraisal comes in a does a valuation of the property comparing 3 sold properties. This gives the seller the idea of what homes in the area is selling for.
A report is then given to the lender to determine if the accept offer is around what the market value is.
The accept offer can be lower than value and if for some reason the home is less than the acceptable value.
The buyer can determine whether they want to come out of pocket to pay the difference for the value.
For example, if I was selling my house in Plano Texas for $200,000, and the buyer makes a cash offer of 185000.
This offer would be lower than what I’m asking. If we hire an appraisal and the appraisal says 200,000 then it’s below the appraisal and not over the appraised value so the offer price is fine if I accept the offer at that price.
If I want more than 185000. I would need to counter the offer and offer like 195000 or 200,000. But not over the actual value of the home.
After that, if the home is listed with me and I’m the agent I will normally hand you over a Net Sheet and on the net sheet, this will show you all the expenses that you will need to pay at closing.
After expenses paid the amount left will be your net amount. This is the amount that you will make after all expenses are paid.
How Do You Get The Money To Buy A New House If You Are? Selling a House First?
To help you understand this question. We have to first understand what you will do when you sell the house.
When you sell the house and need to buy a new home. You would first get the home listed to sell.
You would sign your listing agreement. Then after that, your agent will then make sure they are marketing the property and looking to find you the right offer for your home.
This will include taking quality photos making sure the description is correct and getting it on the MLS.
After this, once we have a buyer and you negotiated the closing date we will search for your new home.
We will make the offer on the new home contingent on the sell of your current home. The closing dates will need to be different…
We would make sure that the new home closing date is further than the closing date of the current home.
Once you close on the current home, if you own it free and clear we will then use the money from that home and close on the new home.
If you are getting a mortgage, once we clear out the old mortgage you should be able to qualify for the new loan and close on the home you made a offer on.
It is always advisable to secure the loan before selling your house first.
Best Ways to Sell Your Home with No Equity
If you are faced with no equity and you need to sell your home then there are still some ways to get the home sold.
One way to sell your home would be to find out how much the difference would be if you were to list the home.
The difference would be an out of pocket expense to the seller. So you would have to pay the difference at closing…
For example. If you were to sell your home in Carrollton Tx for around 250,000 and that’s what you owed to the mortgage company and the expense to sell the home is 10,000.00 then you would have to pay 260,000.
The buyer would buy the house at 250,000. and then you would have to pay the 10k at closing.
The home is sold, Your loan is paid off and this doesn’t affect your credit because you paid the mortgage in full. However, you will still have to come to the closing with 10k to close on the home.
Another way to sell with no equity is to see if you can ask your mortgage company how the qualifying assumable works.
When you have a qualifying assumable mortgage the person would have to then make sure they qualify to take over the mortgage…
If the person does qualify then the person will have to fill out the qualify assumable package. If the person is approved. This will release you from the obligation of the loan. Very important to know right here.
That means you are not responsible for the mortgage payments. The new person is now responsible.
This normally works when the rates are higher than the current rates in the market.
This would be one reason why someone would want to take over the loan payments because the current rates are 5 percent and your rate is 3.56 percent then your rate would be better than the current mortgage rate.
If you need help listing your home then contact me.
Another way to sell your home with no equity would be to sell your home on a short sale.
It occurs when the lender and owner get into an agreement to sell a home before foreclosure. The mortgage company must agree in writing to bear the loss of the sale. A short sale is preferable to foreclosure as it helps to pay some of the balance that is owed off.
The last way to sell your home with no equity would be to sell to an investor.. Sometimes an investor will give you a written cash offer.
Be advised that the investor is looking to get the property for around 70 cents or lower
Preparing Your House for Sale?
Selling a house calls for proper preparations to ensure the buyer makes an offer quickly once they have viewed it.
A few things you can do is clear out the clutter, repaint the walls into neutral color palettes, simplifying the decor, ensuring the house has proper lighting, reorganizing the house interior design to ensure its visually appealing, repair or get rid of the faulty fixtures, faucets, and hinges, upgrading the bathroom and the toilet to ensure they give a luxurious feel which will boost the home value.
Are Realtors Fees Included In Closing Costs?
The realtor fees are usually part of the closing costs, and in most cases, the fee is paid by the home seller.
Usually, the fee is negotiated when the seller lists the home for sale. Closing fees vary from transaction to another and from state to state.
There are some cases where the buyer will have to pay for the buyer’s agent commission if for some reason the seller doesn’t want to pay the buyer agent. Typically the buyer agent will also charge like a fee to get started.
Sometimes the buyer agent will credit the fee at closing. This is normally done to make sure that you’re serious about buying a home.
Conclusion
To sum it up, the value of a home is determined by a variety of factors.
Such factors include property location, recent upgrades, inspection reports, and comparable properties in the neighborhood, appraisal value, proximity to infrastructure and the economic indicators.
A house being sold also has to go through various preparations.
Remember if you want to purchase a home and need down-payment assistance or closing cost assistance we can help. Contact me today!