Thursday, October 1, 2015

Can You Sell a Home with a Lien

A frequently asked question of people needing to sell their home “as-is” is “Can I sell my home if it has a lien on it?”The answer may surprise some people but the answer is yes. The selling situation does become more complicated but selling a home with a lien is possible.  

If a home is being sold with a lien in most cases a closing attorney acting on behalf of the home seller will pay the lien in entirety from the proceeds of the sell before the title can be transferred and an official sale completed. If a home owner cannot afford to pay a lien out of pocket this is an option Usually sellers will account for the price of the lien and add it into the asking price of the home. This strategy is not always fruitful as the home could end up appraising for less and limit the type of buyer that would be approved for a loan on the property.  

Three steps to selling a home with a lien 
  1. Do Research 
With every single home sale it is important to know the value of your home. Fair market value determines what buyers are willing to pay and what banks are willing to lend. There are numerous different online tools to help you determine what your home is truly worth. Be sure to use more than one source to help you determine the fair market value of your home. There are many different variables that go into deciding home value including what comparable properties in the neighborhood are selling for , location,and the amenities in the home. Once you have a good idea of what your home is worth you can move to step two.  

  1. Set a Listing Price Including Liens and Fees 
There are costs to selling a home. If you sell traditionally there are agent fees in addition to other selling fees of closing costs and any repair costs you have negotiated with the buyer. You will need to lower your expectations of how much money you will make off the home when there is a lien. To keep the listing price reasonable you will need to consider paying the liens and fees on the home with profit from the sale.  

  1. Contact a Cash Home Buyer 
Look into selling your home to a cash home buyer who buys properties “as-is.” This can be a cheaper route when selling a home with a lien because you will not be charged for realtors commission. A cash home buyer will ask you about the financial situation of the home and take into consideration your unique selling requirements and make the fairest offer possible with no obligation to accept. When selling as is there is also no requirement to fix the home or give money toward repair and the close of the home is a quicker process.  

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