Being an estate agent requires significant expertise in the field of real estate. One common issue that real estate agents face is selling a house with an upside-down mortgage. Unfortunately, many homeowners have found themselves in this situation over the last few years due to the uncertainty and instability of the housing market. An “upside down” mortgage means that the homeowner owes more on their mortgage than the house is worth. As a real estate agent, it’s your job to help homeowners figure out how to sell their house at a price that can pay off their mortgage regardless of whether they have equity in the property or not.
Here are 5 tips on how to sell a house with an upside-down mortgage:
Evaluate the house’s current market value
It is risky to wait for the home’s value to increase before selling it because it is difficult to predict future real estate trends. Instead, use tools like Realtor.com or Zillow’s Zestimate to research the estimated value of the home in its current condition. A real estate appraiser can also help you evaluate the property. Once you have the current market value, combine it with the remaining mortgage balance to determine the home’s equity. If the house’s value is less than what is owed, it indicates an “upside-down” mortgage.
Consult with the mortgage lender
When a mortgage is upside down, it can be challenging to sell the home. Nevertheless, consulting with the mortgage lender is a terrific starting point. Discuss the lender’s loss mitigation programs, such as short sales, loan restructuring, or a deed in lieu of foreclosure. They might be willing to work out a deal or a payment plan with the seller to alleviate their financial situation. They may also be aware of different federal and state programs or grant the seller permission to sell their home for less than their outstanding mortgage balance.
Price the house competitively
You will need to price the home aggressively, which means pricing it beneath what it’s worth. Homes that are priced too high typically stay on the market for extended periods, which is not helpful for anyone involved. Pricing the home reasonably could attract more buyers, resulting in multiple offers that could drive up the home’s value and help the homeowner pay off their mortgage.
Highlight the house’s positives
When promoting homes in such a situation, it is critical to highlight their best features. Buyers are always interested in what makes a house unique. Concentrate on the home’s best qualities rather than the downside. If the house requires repairs, make sure you highlight how easy or affordable they are. One might also provide incentives to buyers, such as offering to pay for part of the closing costs or throwing in specific property items.
Collaborate with specialists in the field
Selling a house with an upside-down mortgage can be a difficult and time-consuming task. Consider collaborating with specialists, such as attorneys and mortgage brokers, to create a more thorough and profitable process. Attorneys can assist with negotiating the sale and preparing legal documents, while mortgage brokers can assist with evaluating and obtaining new financing for the home.
Selling homes with upside-down mortgages is something that can be done if you have the right tools and resources. Considerably, evaluate the property’s current market value, consult with the mortgage lender, price the house competitively, highlight the house’s positives, and collaborate with specialists in the field. With these tips, real estate agents can assist homeowners in selling their homes, and buyers in finding a home that meets their needs.
Learn more at www.colibrirealestate.com.