Are you selling your house for cash? If yes, it is crucial to determine home equity before going ahead with the sale. After all, there is no point in selling it if your home equity is zero or negative.
At Detroit Cash For Homes, we have worked with clients who found out about their extremely low home equity when listing. This means they have already invested a hefty amount in repairs and renovations. As a result, they end up doing more harm to their finances than good.
- What is home equity?
Home equity refers to the market value of your property, excluding the amount you owe as mortgage payments. For example, if the current value of your house is $50,000 and the pending mortgage balance is $30,000, your home equity will be $20,000.
Home Equity = Current Market Value – Mortgage Balance
Now you have a basic understanding of home equity. Let us learn how much equity you need to sell your house fast in Royal Oak.
- How much equity is enough equity?
Whether your home equity is enough to sell your house depends on various reasons. If you want to sell your Royal Oak home fast for relocating, you must have 10% – 15% equity. On the other hand, if you are not selling a home for money, your equity is enough until you are not paying anything from your pocket. Below, we have listed the top reasons to determine your equity on your home before selling it.
- Why should you determine equity before the home sale?
- If you know your equity is not enough, it can prevent you from spending on costly repairs and upgrades.
- With this, you will know whether a home sale is a feasible option for you or not.
- Also, it saves you from selling a property with zero or negative equity. In this case, you will not get any profit, or you may have to spend from your pocket.
- How do you use your home equity?
If you get significant cash equity for your home, you can use it based on your needs and requirements. The following are some ways people use home equity.
- Pay off debts
- Use the cash equity to cover your medical expenses
- To improve and renovate your home
- Use as a down payment for a second home
- Fund your start-up
- Pay college fees
- To meet the needs of your growing family
- Live a comfortable life after retirement
No matter why you want to sell your house, it is crucial to determine your home equity. If you do not want to go through the hassle of calculating equity, sell your property to Detroit Cash For Homes. We buy houses in Royal Oak for cash faster and stress-free.
Once you hand over your home to us, rest assured our professionals will handle everything for you. Thanks to our determined and hard-working team, we have acclaimed the title of the best Royal Oak estate home buyer. We work directly with homeowners, so you don’t have to worry about commissions, closing costs, and other expenses.
If you are wondering “how to sell my house fast in Royal Oak?” get in touch with Detroit Cash For Homes. We buy houses in any condition and offer guaranteed fair cash.