Wednesday, July 15, 2015

Home Seller Tips: Why do you want to know how much I owe on my house?

When a home owner calls a real estate agent to sell their home they will likely be on the receiving end of a lot of questions.  One of the questions  most important questions a prospective seller will be asked is their mortgage status.

What are some of the mortgage specific questions a seller may be asked by a prospective listing agent?

But it is very important to know some basic information about a prospective seller's mortgage such as:
  • Is there a mortgage?
  • Is there more than one mortgage (a second/home equity line)?
  • Is your mortgage current?
  • If not, how far are you behind with your payments? 
  • Have you received a lis pendens (notice of pending action like foreclosure)? [Notice: I am not an attorney.]
  • Who is your lender?
  • What is your mortgage balance?  
  • Are there other liens on your property?
The real estate agent a seller hires to market their home must get a general picture of the type of sale/seller's circumstances.   The loan balance will help your agent prepare a projected net proceeds estimate based on your home's probable selling price.

These mortgage questions, along with a few others during the pre-listing interview, will help your agent understand whether there is a  "need to sell" or just a "want to sell."   If there is a required break even number a seller must receive then your agent needs to be able to determine if there is even a possibility of making it in the current market.

So when I ask you about your mortgage (and related questions) it is not to be intrusive but to better formulate a plan of action.

Ready to sell your Viera or Melbourne, Florida home?