Share:

Although rising home values have helped many homeowners overcome the hard hits of the housing crisis, many people are still struggling to deal with a home that’s underwater. If you’re one of these homeowners, it might feel like your back is against the wall—even if you sell, you might end up having to pay out of your own pocket to close the sale. Fortunately, there’s good news: you have a number of options even if you owe more on your home than it’s worth. The real estate experts at EXIT Realty Upper Midwest is here to tell you how you can sell or refinance your home with low equity.

image

  • Sit Tight: Although you might be itching to take action to improve your situation, sometimes, the best thing to do is nothing. As the economy continues to recover, home prices will improve. Depending on where you live and how patient you are, sitting back and letting your home’s value increase again on its own may be your best option to ride out the crisis.
  • Rent Out Your Home: If you need or want to move out of your home as soon as possible but have low equity, it could be in your best interests to become a landlord. That way, you’ll continue to have cash flow to pay the mortgage on the house and you can save up so you can put a down payment on a new home. Be careful with your budget, however: if you rent, you’ll need to make sure you also have enough money to pay for your new place. Consider all the different possibilities, even renting out a room to a friend or family member.
  • See If Your Bank Has Helpful Programs: Contact the bank that holds your mortgage to see if they have any programs to help you refinance and bring your payments within your budget. Be sure to ask about splitting your loans into two: a first mortgage and a line of credit. If the total monthly mortgage payment of the two loans is lower than what you’re paying now, this could be a viable option for you.
  • Find Out Which Home Improvements Will Increase Your Home’s Value: Home improvements can be a great way to raise the value of your home if you’re settled on selling-as long as they’re the right improvements. The real estate and investment experts at EXIT Realty Upper Midwest can help you assess which home improvements will be best for you.
  • Negotiate The Commission: If you do decide to sell your home, try negotiating the commission that you pay the realtor. However, make sure you get professional advice on this: if you misprice the commission, you could lose money or even wind up in a legal bind. Remember: even if you’re selling your home yourself, you have to pay a commission to the buyer’s real estate agent.

If you’re a homeowner looking to sell a home with low equity, contact the agents at EXIT Realty Upper Midwest. And if you’re looking for a career in residential or commercial real estate, look at the real estate leadership opportunities at EXIT Realty, the fastest-growing real estate agency in Iowa. Not only do they provide the best training available to new real estate agents, but the training is free, and you’ll be part of a non-traditional company that prides itself on excellence and offers some of the best benefits in the industry.

For more information, visit the EXIT Realty Upper Midwest website or call (612) 414-4022 today. These real estate experts offer help to clients in over 40 locations in IA, MN, SD, ND and WI.

image

tracking