More and more older home owners have turned to reverse mortgages because it allows them to take advantage of their equity in their homes. In most cases, people take out a reverse mortgage, and they have plans to stay in the home. However, sometimes you may have to sell your home, and this is when people wonder how to sell their property even though it has a reverse mortgage.
The good news is selling a home with a reverse mortgage is similar to selling a regular home. However, there are a few things you should be aware of. One of those things is you need to pay the reverse mortgage in full once the home sells.
Family members are often left with paying a reverse mortgage off. In fact, it’s quite common for kids of a deceased parent to figure out how to sell a home that has a reverse mortgage on it. With that said, if you want to learn how to sell a house with a reverse mortgage, then continue to read on.
- Difference Between Selling A House With A Reverse Mortgage– One of the first things you should do when you want to sell a home with a reverse mortgage is to look at mortgage documents. The key is to figure out what you will need to pay should your home sells, and this includes interest and fees. If you don’t know what the amount you have to pay is, then contact your lender because they will provide a quote and then you will know how much the total payout will be.
After finding out how much you need to pay, compare that figure to the estimated worth of your home, and consider speaking with an experienced Realtor, who will be able to provide a detailed report on how much your home may sell for. Your market and comparable sales in the neighborhood are some factors that play a role in how much the home will sell for. The main goal is to sell the home for more than the reverse mortgage amount because you don’t want to sell your home for an amount that is less than the balance of the mortgage.
- How To Sell Your Home– After you figure out whether or not it is viable to sell your home, you can begin the sales process. There are a few things you should do. One of those things is hiring a real estate agent, which will be discussed in the next section.
- Hire A Real Estate Agent– Sure, you can sell your property on your own, but this requires a lot of work on your part. You can hire a real estate agent to handle everything, and they can help you sell your home for as much as possible, all without pushing away potential home buyers due to the price of the home. A good agent will know how to generate attention, and they will know what to do to spread the word about your home, which can result in you selling your home much sooner rather than later.
Contact numerous realtors before you hire one because you want to choose the right agent, and you want to make sure you hire an agent that has plenty of experience with selling houses. This is because putting a home on the market is a big deal, so take the time to verify any references the agent provides you and make sure you find an agent that sells homes for almost the full asking price or for the full asking price. The goal is to find an agent that can help make everything easier for you.
Choose a real estate agent with excellent communication skills because this is really important. Meet with a real estate agent that responds quickly to any questions you have before you even hire them. If an agent doesn’t respond to you right away, then the chances are they will not respond to you quickly if you hire them. The quicker a Realtor responds, the better off you will be if you hire them.
A good Realtor will have a solid online presence. Pay attention to the presence they have online. A good agent will have excellent photos and they will have great listing descriptions, and they may offer video tours of the homes they are currently trying to sell.
Keep in mind that homes with reverse mortgages tend to take a bit of time to sell. This is why hiring a real estate company makes sense. Just remember that there are thousands of agents out there, so take your time to research different ones and then hire the one you think will provide you with the most benefits.
- Preparing Your Home– When the time comes to sell your home, you will want to attract as many potential purchasers as possible and this is why you should work with a real estate agent. They know what you need to do to attract buyers. There may be specific areas of the home that need work done, and a good sales person will be able to point out the areas to focus on making repairs.
Put yourself in the shoes of potential buyers, and this means taking a look around the home and figure out what work is needed to update it. Knowing what areas to improve can aid selling your home. As previously mentioned, a good real estate agent can help you with this.
The truth is that people want to buy a home that is in turnkey condition because most people don’t want to do work on a new purchase, and this is due to various things such as having a busy work schedule or busy life in general. If you can do it, then you should make small repairs and small improvements. The key is to make your property as marketable as possible, and a real estate agent can help you with this. The more attractive your home is, the better off you will be.
- Keep Residence In Good Shape– When the time comes to show your property, you want to make sure it is clean and looks great. You can hire a professional cleaner to make your home spotless so that it will be in good shape for future showings. The right buyer can walk through your door at any given minute.
Make sure the house is free of odors if you own pets. Yes, we may love our pets, but many potential buyers don’t like the smell of the odors they give off.
If you have pets, then consider letting a friend watch them on days you know you will be showing the property. Some people may not like to see your pets lounging around the home. However, if you already know that the potential buyers don’t mind pets because they have some of their own, then you probably don’t have to make your pets scarce for showings.
- Not Updating Your Home-A real estate agent can help you update your home. Some of these things may include wallpaper and old carpets. If you have outdated items in your home, then this may make it harder to sell it.
There is a good chance a real estate agent will point out what needs to be replaced if you want to make a quick sale. Sure, you may not like what an agent says about changing your wallpaper, rugs or other things in your home, but is a quick sale is not a priority then don’t make any updates to it.
Repairs that should have been done may have been ignored, but if you want to sell your property that has a reverse mortgage, then you should put effort into making general repairs. Plus, a home inspection can either make or break a potential sale, so it is important to make general repairs. Many homes fail a home inspection, and this is why you should be as prepared as possible.
- Verify If You Need A Lawyer– You may have to work with a real estate agent if you want to sell your home and if it has a mortgage on it. You can speak with an agent to figure out if you should hire a real estate attorney. Getting legal presentation makes perfect sense when you’re selling or buying property.
- Listen To The Agent– You need to choose a real estate agent you truly trust because when you work with a Realtor, then you want them to get you the best results. Also, it’s important to take your agent’s advice into consideration, and this means you should make updates to areas of your home that the agent tells you to update. Remember, a real estate agent is a professional, and the chances are they know exactly what needs to be done to increase the chances of a home being sold, so don’t be stubborn and try to do things on your own.
After your home sells and you have paid everything off, you can enjoy the profits. Now you should know more about selling a home that has a reverse mortgage on it. Keep what you have just learned in mind and you should be fine.
Selling a home with a reverse mortgage can be challenging, and it can seem impossible to do at times, but the truth is it doesn’t have to be hard. As previously mentioned, this article can help you sell your home, even if you have a reverse mortgage on it. Just remember, your best bet is to hire a real estate agent, and you may want to consider hiring a lawyer that specializes in real estate, bt one thing you do want to do is to hire a good real estate agent. If you do that, and you keep this article in mind, then sooner or later you will sell your home, and you can enjoy the money you make from the sale.
If you are thinking of selling, call me and we can sit down and discuss your options
250-979-8066 or 1-877-330-5883
Royal LePage Kelowna