What’s up everyone, it’s Hieu Bui with HBI Home Solutions, and today we’re going to talk about how you can sell your house fast in Augusta, even when you owe too much on the mortgage. I’ll explain the concepts and I’ll walk you through an example of a house we bought from a seller who has very little equity in her house and it will all make sense. Without further ado let’s dive into the video.
First, you need to understand that when you want to sell your house in Augusta, you need really pay close attention to how much you currently owe on the mortgage. Keep in mind there will also be expenses associated with the sale of the house. For example, the typical expenses are real estate agent commissions, repairs costs and closing costs. If your house value is not high enough to pay off the mortgage and cover all the selling expenses, you won’t get any profit at the closing day. Matter of fact, if you owe too much on your mortgage, you literally have to pay money out of your pockets to be able to sell your house fast in Augusta. Most people do not have or do not want to spend extra money for selling their house, so they never go for it. They hold onto their burdensome house for years, causing a lot of stress and anxiety in the process.
Most regular home buyers or investors cannot purchase your house if you owe too much on it. They always offer you a price that will be lower than your mortgage balance, making it impossible for you to sell it without losing a ton of money. However, we at HBI Home Solutions have alternatives for situations like this. We have worked with 40+ sellers and helped them move on from the houses they owe too much on.
So How we are able to do this is that we set up to take over the existing mortgage for the sellers. This allows us to buy the house without applying for a loan. As you know when you first bought your house, the cost of getting financed on your house can be astronomical. We as professional house buyers pay even more to obtain a mortgage, because our loan isn’t subsidized by the government like regular home buyers. When we take over payment for the existing mortgage, we save on tens of thousands of dollars in finance costs. Ultimately we pass on this saving onto you the sellers by giving you a higher offer on your house than 99% of other home buyers.
I’m gonna walk you through an example of the house we bought just recently by taking over the mortgage payment. This house is on Angela St, Augusta, 30907. The seller is out of state and needs some money to cover her personal situation. The seller owes about $75,000 on the mortgage. It needs total foundation repairs since the house is literally leaning towards 1 side. You can see a 10 degree slope looking at the hallway. The foundation repairs cost $30,000, and other cosmetics repairs will also cost an additional $30,000. Closing cost, realtor cost, and other misc expenses will run about 8% of the value of the home, so let’s say $11,000. The house is worth $140,000 after fixed up. So adding up everything from the mortgage owed, the repairs cost, and the selling cost, the seller is looking at $146,000. The house is only worth $140,000, so it is impossible for them to sell it traditionally without losing money. If the seller sells to an investor who may cover the closing costs and agent fees, the seller may save $11,000. However, an investor would still have to pay a total of $135,000 for a house that is only worth $140,000. The profit margin is extremely thin. No experienced investors would pursue this option.
The seller has talked to many investors before and they all told her the same thing. They offered too little for the house because it needs a lot of work. When they talk to us at HBI Home Solutions, we offer to not only take over the mortgage so she can be freed from this property, but also give her $10,000 to walk away with. She hesitated at first. But after we discussed the process in length with the help of a reputable real estate attorney, she was all on board. We closed on the house 3 weeks later, the ownership transferred to us, she received her $10,000 at closing, and it was done.
HBI Home Solutions is a local real estate buyer in the Augusta area. We buy houses as-is for cash. If you are interested in selling your house fast in Augusta, submit a form on our website and we will be in touch with you within minutes.