Sometimes, people buy properties they outgrow over time. Other times, they might encounter personal or financial upheavals that force them into selling a mortgaged property before they finish paying for it. Can you sell a house before paying it off?
Since we buy houses in Detroit, Michigan, our team at Wise Property Buyers outlines what you’ll need to sell a mortgaged property. Whether you have a positive or negative reason for preemptively leaving your home, you can still profit from the sale and make the process work to enable a smoother transition.
How To Sell Houses With Mortgages
Selling a house with debt is more common than many people think. Homeowners place properties on the housing market for numerous reasons, such as:
- Lien removal or avoidance
- Employment changes
- Shifting family needs
No matter your situation, you can successfully sell your property, cover your remaining mortgage, and transition to your new home. Learn how to balance an outstanding mortgage and property sale below.
#1. Calculate the Current Value and Speak With Your Mortgage Provider
First, use a free property value calculator to learn how much your property might be worth on the current market. Agents and appraisers can provide a more accurate estimate if you prefer harder numbers. Once you find a satisfactory estimate, contact your lender about your plans.
Can you sell a house without paying it off? Not without discussing it with the lender. Your provider can tell you what’s left on your mortgage. This will determine the best price point to cover a real estate transaction with a loan balance.
#2. Determine Where Profits Should Go
Next, strategize how to fund a home sale with an outstanding mortgage. Not only will you need profits to cover the remaining debt, but you might also need:
- Agent and appraisal fees
- Homeowners’ insurance payments
- Property taxes
Ensure the sale price covers these at a minimum so you can come out of the process evenly.
#3. Speak With Agents and Appraisers
Next, consult with real estate agents, inspectors, and appraisers as needed. They can advise you on navigating the market, which services you’ll need, and other ways to make the property more attractive to potential buyers.
#4. Prepare the Property
If you go the traditional route with a real estate agent, follow their recommendations to prepare the building and surrounding property. For example, you might check the following to-dos off your list:
- Powerwash the exterior and pavement
- Mow the lawn and refine the landscape
- Stage rooms for viewing
- Handle obvious repairs
#5. Put Your Home on the Market
Finally, put your property on the market. Remember that once you finalize the sale, you must provide the above service providers with their cut of the profits. Alternatively, sell your home to a cash buyer for a simpler process.
Can You Sell a House Before Paying It Off? You Can With Wise Property Buyers
Can you sell a house before paying it off? Yes, but combining a mortgage payoff and a home sale complicates things. Wise Property Buyers provides cash offers at 313-513-8824. Learn the best time to sell a house, too, for maximum profits.