How To Sell A Nashville House With No Equity

sell a nashville house with no equity

Real estate economics can be difficult for any local Nashville home buyer or seller, especially with the market fluctuating so drastically. Then there is the question of “Can I sell my house with little equity?” It might not sound promising or even possible, but there are a few options so the answer is yes. However, most of these options will require some payment and if you are looking to sell your home under these circumstances without losing more money than only one of these options will be suitable.

Listing With A Local Nashville Agent

This is typically the first option sellers think of and probably the most costly. First of all, agents charge a commission fee and this is normally calculated between 5% – 6% of the initial purchase price. Needless to say it will be a substantial amount. In addition, if a type of mortgage loan is applicable which exceeded 90% of the purchase price and if the seller hasn’t lived in the house for more than two years then closing costs will also be involved

Refinance the House

The second option seems more realistic, but there are conditions involved. This requires a good credit score, a stable and good job along with reserve money in the bank.

Subject 2

A subject 2 contract is the only option that doesn’t involve out of pocket expenses. It allows the seller to hand over the responsibilities of the mortgage to a buyer without contracting an agent or refinancing. The best part is that this can be done even when the seller doesn’t have any equity. If the seller has a little equity than the buyer pays that equity to the seller and takes over the rest of the payments of the mortgage.
The process is quite simple. The buyer and the seller go into a subject 2 contract, which means that the loan contract will remain in the name of the seller, but the seller transfers the deed over to the buyer. In turn the buyer makes direct payments to the lender on behalf of the seller. It is completely legal and doesn’t require any money from the seller.

No Equity Doesn’t Mean You Have To Lose Money

Ultimately a seller does have a few choices available, but they should also ask whether they can afford these options. Common sense tells you that selling a home shouldn’t cost any money, even if your equity is low, which is why a subject 2 option is the best route to go. You have no reason to lose money or pay extra expenses when this option is so easily available.

Work With An Local Nashville Buyer That Has Experience With Subject 2 Deals