Selling your house can get quite expensive. From escrow and taxes to insurance and real estate agent fees, a lot of money comes straight out of your pocket. You could even end up covering the buyer’s fees if they decide to hire a realtor, too.
If money is tight, just the thought of covering all those expenses can leave you feeling hopeless about being able to sell your property. You need to resolve your challenges, after all, not make matters worse. Although you could negotiate for lower fees, that only serves to extend the process, leaving you without a solution in the meantime.
Without home equity on your side, it might even look like you could lose money on the sale. With enough equity you could cover all those costs and more, but you may not even have enough into the home to pull that off. That’s especially true if you just bought the property in the last 10 years. Even worse, if the market has been declining in your area, you could be underwater, which means you owe more than your home is worth.
Thankfully, we are here to help. With Onestep Offer as your buyer, you won’t have any closing costs, agent fees, or any other expenses. We’ll just extend a cash offer on your home, no matter what condition it is in, how much you owe on the loan, or your equity status.
As you make each payment on your mortgage, a portion pays for interest on the loan and the rest applies to the principal. At first, the mortgage lender essentially owns 100% of your property. Bum deal, right?
But as you pay down the principal, the difference reflects the transfer of interest from the bank to you. It’s also how much equity you have in the home. Whatever you put in for a down payment applies to your home equity as well.
Since lenders frontload the interest on your loan, your monthly payments largely go to paying that off before the principal. What that means is your home equity grows rather slowly at first. This could leave you with little to show for all those payments. And to make matters even worse, the market could plummet, wiping out all your home equity as the value of your home decreases.
Real estate agents can make it easier to sell your home, but their services come at a cost. Most agents charge up to 6% of the value of your home, which preferably comes out of your home equity. If you don’t have equity in the property, guess what? You get to pay that out of pocket.
If your buyer decides to hire their own real estate agent, you’ll have to cover their agent fees as well. And you don’t get to tell them to go without. The only real option then is to skip the agents altogether or risk paying big.
Many people talk about loan refinance as a way to build home equity by lowering that pesky interest rate. While that’s true, it ignores the fact that you might not want to stay in the home for the long term.
You’ll still have to maintain the home for years while paying down the balance to build your equity. If you want to move soon or need to handle immediate financial challenges, then refinance is just not a great option.
If your home is not in pristine condition, you could have trouble finding buyers that do not lowball you every chance they get. The ultra low offers not only fail to cover your financial obligations but also waste a whole lot of your time.
To get around that problem, you have to shell out the big bucks to whip your home into shape and attract full price offers. Unfortunately, in doing that, paying for all that work will wipe out your potential proceeds, making your home sale virtually pointless.
The only sure-fire way to take home equity out of the equation altogether is by selling your home to Onestep Offer. Unlike other buyers, we’ll provide a cash offer regardless of the condition of your home or balance on the loan. You can then walk away from all the trouble without shelling out tons of money for agent fees, closing costs, and much more.
Even better, you won’t have to wait for buyers to put in offers, the bank to approve the sale, or go through a lengthy closing process. We always strive to close within just seven days to get cash in your hands fast.
If that sounds like just what you need, go ahead and give us a call today at 952-491-0278. We look forward to providing you with a fair no-obligation offer on your property. By taking this step, you can skip the home sale hassle, get cash fast, and go straight to the next steps in your journey
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