Picture this scenario: you’ve saved up enough to buy a home and was in the process of looking for the right home for you. Unfortunately, none of the homes within your budget was calling out to you. The one home that you did like was priced way out of your budget, so you decided to take a loan just to be able to afford it.
However, now that you’ve already purchased your dream home, you belatedly realized that it was priced way above the common home values in the neighborhood. Then life happened, the market changed, or you pulled out equity to pay off bills and now you owe more than what your house is worth. Don’t fret, you are not alone. This is not uncommon among property owners in Phoenix, AZ.
Fortunately for you, you’ve come to the right page. Here at Austin Property Solutions LLC we’ll help answer all of the questions you have regarding selling your Phoenix property without equity. We buy houses in Phoenix, AZ, so we know our way around market values and real estate matters. But first, what is home equity?
What Is Home Equity?
Home equity is the market value of the property that you own, minus the amount you owe on your loan. It is the amount of money left after subtracting the unpaid balance on the property from the current market value estimated by a valuator.
And if you bought your home way above your budget, then it’s also possible to not have equity at all. But can you still sell your property without equity? Of course, you can! Remember, any home can be sold, and you will always have options.
Here are some ways you can sell your Phoenix home without equity.
How To Sell Your Home Without Equity
Through A Short Sale
A short sale is a type of sale where you and the lender agree to sell your property for less than the outstanding debt on the mortgage. The lender agrees to take a loss, and you get to save your credit. While a short sale technically means you don’t get to make a profit off of selling your home, at the flipside, at least you get to save your credit score. Of course, don’t forget to have your agreement with your lender solidified through writing. Otherwise, you might still end up owing your lender despite having already sold your property.
FSBO or for sale by owner is a kind of sale where you manage everything yourself–from the listing to the showings. You’ll need to prepare your property by making the necessary repairs, cleaning it and making it presentable, and even dabble in some staging. Then, you will also be in charge of marketing your property, hosting showings, and essentially taking over the tasks that a real estate agent usually does. However, one obvious downside of selling through FSBO is the lack of experience you have compared to the kind of help you are privy to with a realtor.
With The Help Of A Real Estate Agent
A real estate agent can definitely help sell your home even if you don’t have equity. For instance, since he or she has an extensive knowledge in the real estate market and in neighborhood values, he or she can price the home accordingly and easily market it to the right buyers.
Sell To A Professional Home Buyer
Another option available to you would be to sell your property to a professional home buyer. A professional home buyer will usually have the taglines “we buy ugly houses in Phoenix, AZ”, or “we buy houses in as-is condition in Phoenix, AZ.” To make sure you’re dealing with a trusted professional buyer, look for reviews about companies looking to buy ugly houses in Phoenix, AZ.
The good thing with deciding to sell to a professional home buyer is the fast transaction and the ease of the home selling process. You don’t have to spend on repairs, you don’t have to take time out of your day to host open houses, and you don’t have to wait for months just for a buyer to show up–only for him to back out at the last minute due to problems with his mortgage.
If you’d rather not go through the hassle of marketing your home and preparing it for open houses, you can always choose to sell to a professional home buyer. If you’re ready to sell your home, don’t hesitate to reach out to us here at Austin Property Solutions LLC, because we buy houses for cash in Phoenix, AZ.
Ready To Sell?
With the advent of online real estate services, selling your property is easy—even in the middle of a pandemic! Here at Austin Property Solutions LLC, we buy houses in Phoenix, AZ in any condition. You don’t have to worry about repairs, renovations, financing, and other problems associated with listing your Arizona property yourself. All you have to do is reach out to us here (480) 485-1155 and get your fair cash offer today at no hassle at all!