Selling a home is already difficult on its own. Selling a home when you have 0 equity, however, is even more so. Equity in a home is one of the key advantages a homeowner has during the selling process. Having 0 equity removes this advantage, making the selling process longer and more complex.
What exactly is home equity?
Home equity refers to the amount of money a homeowner has after removing the unpaid balance on their home from the home’s current market value. Equity is not a static price, as it can go up as the debt is paid and the home’s value appreciates.
Even if a home has zero equity, the homeowner can still sell it. The process just won’t be as straightforward as a home with equity.
Here are ways a homeowner can sell a house with 0 equity.
1. Short sale
If you owe more than your home’s current value, one way you can sell it is through what is called a short sale. During a short sale, the homeowner and lender both agree to sell the house for less than the outstanding debt on the mortgage. In this situation, the lender agrees to take the loss on the sale while the homeowner gets the save their credit history. Although not the best option out there, it can save the homeowner from foreclosure and helps the homeowner’s ability to buy another home in the future.
Short sales can be complicated, so it’s important to have the agreement in writing. There have been instances in the past wherein the homeowner still had debt to pay off despite undergoing a short sale agreement with the lender.
2. For sale by owner (FSBO)
As the name implies, FSBOs refers to the homeowner selling the house themselves, without the aid of a realtor. Foregoing the use of a realtor helps homeowners maximize their profits and reduce their costs. This process is even easier if the homeowner already has a buyer lined up and all that needs to be done is drafting the paperwork. The problem is, more often that not, finding a buyer is difficult. This is even more of a problem if your home isn’t well-maintained or dated. Everyday buyers in Florida don’t really buy houses if they aren’t in pristine condition.
3. Through a realtor
Selling your home can be tiring, especially if you’re worrying about your home having no equity. Working with a licensed realtor takes the stress off your shoulders. The main problem with working with a realtor is the various fees that come with it. You’ll have to worry about agent fees, closing costs, and realtor fees. And when you’re dealing with a home with zero equity, you’ll obviously want to take home every penny.
4. Sell to a professional homebuyer
Cash homebuyers in Naples, Florida may be the best option for those looking to sell their homes with 0 equity. When you sell to a “we buy houses in Florida” company like Alpha Properties, you can sell your home for its market value without the need of hiring a realtor or doing it yourself.
We buy houses in Florida companies work by buying the house directly from you, as-is, where is. Yes, even ugly houses. So, there’s no need to worry about any repairs or renovations to make it more attractive to potential buyers.
At Alpha Properties, we work closely with real estate experts with a wealth of knowledge in local market economics and regulations to determine the best possible price for your property, even if it has zero equity. We buy houses in Naples, Florida fast and without issue using 100% cash-only deals. So, if you’re in a rush to sell your home before it goes into foreclosure, then we’re the guys for you!
Once we provide a FAIR CASH OFFER within 24 hours for your home, the ball is in your court. You then have the decision power to move forward with your life by accepting our FAIR CASH OFFER or take the risk and try selling it yourself or through a realtor. To find out more about our unique and alternative ways to sell your house fast in Naples, FL for cash, call us today:(305) 204-1216
