When you’re upside down on your mortgage or owe more than the current market value, it can feel like your back is against the wall. Typically fluctuations in the economy cause downward trends in real estate pricing, which can have an ill effect on those with little to no equity, for whatever reason. Often, homeowners find themselves in this situation when they have taken out lines of credit against the equity to cover living expenses.
Don’t lose hope; you have options and some bargaining power, especially if you take advantage of the time you have before things get more complicated with your mortgage. However, now is the time to act. If you foresee financial hardship coming, it may be time to exit the property. Keep on reading to find out how you can sell a house in McAllen that is worth less than you owe.
Owner Financing
Consider offering owner financing as a way to sell a house in McAllen that is worth less than you owe; the benefit to the buyers is worth far more than you may realize. At the very least, their initial down and monthly payments should more than cover your mortgage for the contract duration. Another benefit of this situation, the buyers are responsible for caring for the property as if it were their own. If you have some carefully screened aplicants and a savvy marketing campaign, you could find tenants willing to pay a higher than market value. However, your asking price needs to be higher because you offer to hold the property off the market for the next two years. Because real estate can fluctuate significantly over this length of time, you may take a loss on the sale at the current price, so your asking price must include a calculated estimate of what the market could demand for the property in two years. There are many reasons for this situation; typically, the buyers need some time to save towards a large downpayment and they may be working on getting a better credit score. The main attraction of owner financing is that it allows the buyers to begin living a homeowner’s lifestyle now while they have time to improve their standing for mortgage approval. Additionally, extra monies are paid monthly on top of the rent payment, which will count towards a sizeable down payment at the end of the agreement, customarily for two years. In the worst-case scenario, should your buyers fail to fulfill their end of the deal, you still have your valuable real estate, and you keep any payments the buyers made towards the down.
Take into consideration that buyers typically seek houses that are in move in conditions; if the property needs work, they will expect deep discounts going towards the downpayment. However, if you are experiencing cash shortfalls and your home is in a state of disrepair, owner financing may not be the correct answer for you. A better option may be a direct sale to a company like Dolfin RGV, which will purchase most homes as-is.
Dolfin RGV
Dolfin RGV may be able to help you get a cash offer if you need to sell a house in McAllen that is worth less than you owe. Now and moving forward, the direct buyers at Dolfin RGV are here to help. If you don’t have time to list your property with a realtor and wait for it to sell, or you are fending off bill collectors and need to sell now, a direct buyer from Dolfin RGV will provide you with a guaranteed closing date. And Dolfin RGV uses straitforward simple contracts in writting, with no hidden fees. At Dolfin RGV, our direct buyers don’t work on commissions, so you don’t have to worry about paying realtor’s fees, commissions, or paying for repairs at closing. When you sell directly to Dolfin RGV, the amount offered is basically the amount you’ll receive at the closing table, and you could have your cash in hand in a matter of days. If you’re not quite that ready because a direct buyer from Dolfin RGV isn’t planning on moving into the property, we can be flexible and set the closing for any day on the calendar that suits you best.
At Dolfin RGV, we can address your concerns about selling directly with absolutely no obligation; feel free to ask us any questions you may have. At Dolfin RGV, we understand this is an extremely stressful time, so we stop and take the time to listen to your needs. Working with experienced local pros like the direct buyers at Dolfin RGV makes the selling process easy; we’ll walk you step by step through the process. So that you’ll feel good about the deal long after closing, a direct buyer from Dolfin RGV will detail the costs and profits of listing on the traditional market vs. what you’ll see from a direct sale so that you can make the best decision for your circumstances. Contact Dolfin RGV at (956) 904 5234.