Sellers Paying To Sell A Home

This article about sellers paying to sell a home was written by Elizabeth previously. This was written was during a different market, of course, when sellers often owed more than a property was worth. This can still happen if a seller tries to sell too soon after a purchase with little to no equity.  It is a great piece on when sellers use their home as a piggy bank. — JaCi

I’m seeing more sales lately in which sellers are bringing in money to close. They are paying to sell. This might seem backwards to you because sellers are supposed to make money when they sell, but in down real estate markets, the seller might not have enough equity in the home to pay costs of sale and put money into the seller’s pocket.

Some sellers have taken out home equity loans to support other obligations or pay for home improvements. Or they have refinanced the property, draining what little precious equity remained. Although they don’t realize it, these sellers have already removed their equity. So, when they decided to sell, equity isn’t going to magically appear out of the abyss when there isn’t any equity left. To sell, they typically need to bring money to the closing table. Ouch.

Call Weintraub & Wallace Reators with RE/MAX Gold if you are interested in buying or selling a home. Call us at 916-233-6759.

Elizabeth Weintraub

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