There are a lot of decisions to make when trying to decide the right time to sell your home in Amarillo, Texas. Knowing the amount of equity in your home is a good first step in deciding if you will be able to sell your property.
It is ideal that your house have enough equity for you to make enough money when you sell to pay off the mortgage and all closing fees. For those who are selling, it is important to understand what home equity is and how to determine the value of your real estate. If you are needing to sell your home at below market value, understanding what your short sale options are is also important.
What is home equity?
If your house is worth more money than you owe, you have equity in your home. Equity is determined by subtracting what you owe on your mortgage by the amount of your home’s current market value. Include any other liens against your property in your equity determination. The more equity you have in your house, the the more you can negotiate when offers are made below your asking price.
How to determine the value of your home
Determining the current value of your home is vital when you are trying to establish equity. A good Amarillo real estate agent can perform a comparative market analysis to come up with a viable valuation for your house. The real estate agent will research property sales in the last six months in the same geographic area as your home. The agent will choose three homes of similar size, age, and overall condition as your property. The average of these three sales will be the amount used as your home’s fair market value for determining equity.
Knowing your short sale options to sell your home
Sometimes circumstances dictate that you must sell your house even though you owe more money on it than the market will bear. In this instance, you are considered upside down and have no home equity. The Amarillo market value of your home will not pay off all the debts on the real estate. Using specialized techniques and programs, short sales are possible, especially when you hire an Amarillo real estate agent that is trained in these circumstances. In a short sale, the lender agrees to a payoff amount that is less than the actual amount owed and agrees to release the property lien.
Home valuations and determining equity are crucial aspects of selling real estate. Make sure you choose an Amarillo real estate agent who is knowledgeable in equity, comparative sales analysis, and short sales to successfully sell your home. The Amarillo real estate specialists at Elite Real Estate Group can help you determine if you have enough equity to sell your home. We serve buyers and sellers in Amarillo neighborhoods and surrounding areas, including Bushland, the Colonies, Tradewinds, Canyon, Hillside Terrace, the Greenways, City View, Puckett, and more. To learn more about our services, give us a call at (806) 337-0883 or Contact Us by email. You can also view our listings today to see properties that are currently on the market.