![]() Next, you want to find out how much you still owe on your mortgage. An agent will also likely request to do a walkthrough of your home to inform their assessment. ![]() Your real estate agent will give you a more precise number using a comparative market analysis (CMA) that analyzes the value of your home based on comparable sales, a tool that you will use to price your home when the day comes.Īn agent will be able to pull comparable sales from their local MLS, giving them greater insights into the area. On the open market, a buyer may be willing to pay more or less than what your estimate shows. Keep in mind that our estimate tool is not a guarantee of what your home will sell for. Input your address, answer the short questionnaire, and we’ll provide you with a near-instant estimate. HomeLight’s Home Value Estimator pairs housing market data from multiple trusted sources with details about your house that you personally share. For a ballpark figure, you can use a free online home value estimator. Follow the steps below for an in-depth explanation of the mortgaged home sale process.īefore you list, start by getting an idea of how much your home is worth. You’ll need to evaluate how much equity you have in your home and your reasons for selling. Ultimately, when it’s time to sell a home with a mortgage, the path isn’t one size fits all. A mortgage is more likely to become underwater if a seller falls behind on mortgage payments, sells before they’ve gained much equity, or sells during a market downturn.Therefore, it’s uncommon for sellers to owe more than their home is worth, a situation known as being “ underwater.” Even in today’s slowing housing market, property values remain moderately high from the pandemic homebuying boom.If the amount received from the sale falls short of your outstanding mortgage balance and selling costs, you will have to cover the difference with funds other than those from the sale.After satisfying the mortgage debt and covering the fees associated with selling a house, such as commissions and taxes, you will (hopefully!) have some profits to take home.Your lender will receive their payout at the time of closing. You’ll use the proceeds from the sale of your home to pay off your existing mortgage balance.Here’s an overview of what the process looks like: ![]() The key difference is that the money you still owe your mortgage lender will come out of your sale proceeds. Much of the process of selling a home with a mortgage is the same as selling a home you owe free and clear. You can absolutely sell your home if you have a mortgage. Get Estimate Can You Sell A House With A Mortgage? Read on for what you need to know about what happens when you sell a mortgage, plus insights on how to gauge the right time to sell and set the right asking price when you still owe on the home. ![]() So thankfully, you are not stuck in a home until you pay off every last dollar. “And since the average person stays in their home for less than ten years, it’s extremely common to sell a home with a mortgage.” “Here’s the big thing to understand: Most people have mortgages on their home,” says Kevin Bartlett, a top real estate agent in Southwest Florida who sells homes 49% quicker than other agents in his market. Most mortgages come with 15- or 30-year terms, while the average time people lived in their homes before selling in 2022 was 10 years, according to data from the National Association of Realtors. To cut right to the chase: You can absolutely sell a house with a mortgage. What happens when you sell a house with a mortgage? Do you need to pay your home off before you sell? If you currently owe money on your home loan and are ready to move, you may be grappling with whether you can sell a house before paying it off. If you need assistance navigating the decision to sell a house with a mortgage, HomeLight always encourages you to reach out to an advisor regarding your own situation. It should not be construed as financial, tax, or legal advice. DISCLAIMER: As a friendly reminder, this blog post is meant to be used for educational purposes. ![]()
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