House 100 Percent Financed? No Equity?
The “low equity, no equity” situation is the most common problem we come across. In most cases, the homeowner has tried to sell their house “for sale by owner” (FSBO) with no luck. When they discover they are unable to sell their home, their next step is usually to list it through a Realtor®. In order to cover the Realtor’s commissions and closing costs, they usually have to dramatically increase the asking price. Since the price was artificially increased, the likelihood of selling the house is reduced even further.
Even if the house does sell, any equity that does exist is quickly eaten away by the Realtor’s commission, closing costs, taxes and holding costs, leaving the seller responsible for bringing a large check to the closing table.
You don’t have to pay real estate commissions and you don’t have to give away your equity, no matter how small it is, to a Realtor®!
We purchase homes from people in situations like this all the time. In most cases we are able to return some of that hard earned equity to the homeowner, or at least reduce the amount of money they have to pull out-of-pocket at closing.