How to Sell a House with a Fixed Mortgage | EstateAgentPower.Com
Jul 11, 2024
“Guide to selling a house with a fixed mortgage”
The decision to sell a house with a fixed mortgage comes with various questions and concerns. One of the common queries most of the sellers wonder about is whether they can sell a house with a fixed mortgage. The first thing to keep in mind is that selling a home while having a mortgage is possible. Keeping the terms and conditions in mind, homeowners can easily sell a house with a mortgage. Discover the step-by-step process of selling a house with a mortgage in this blog post.
1. Review Your Mortgage Agreement
Before listing your house with a fixed mortgage for sale, it is best to review the mortgage agreement. Fixed-rate mortgages enable you to pay a fixed rate of interest during the entire term of the loan. You must review your mortgage agreement to check the terms and conditions regarding selling your home during the mortgage period. Most of the mortgage lenders may ask for an early repayment charge which is usually between 1% and 5% of your outstanding mortgage balance. You are liable to pay this early payment penalty to end the mortgage before the established term.
2. Obtain the Payoff Statement
Another thing to consider when selling a mortgaged house is to obtain the payoff statement from your lender. The payoff letter will let you know the total due amount including the principal amount, interest accrued, and other charges. Determining your due amount is important to calculate your profits from the house sale after you pay the mortgage.
3. Estimate the Value of Your Home
Once you get the statement of the amount to be paid, it is time to estimate your home’s net value. Estimating the net value is vital to determine whether the expected sale amount will be enough to pay all due amounts and save some money to make a new investment. Consider home valuation or appraisal services to determine the net value of your property. You can use the online valuation tool of Estate Agent Power to find the market value of your house before selling it out.
4. Set a Selling Price
Decide a selling price for your house by comparing the sold house prices in your area or use home valuation reports to price it accurately. Setting a competitive price is essential to ensure the best deals and aids quick selling. Properties priced accurately attract genuine buyers.
5. List Your House for Sale
After deciding on the selling price, list your house for sale on a real estate platform. Online real estate marketplaces are ideal for presenting properties for sale and reaching a diverse pool of international buyers. List your house on estateagentpower.com to market it efficiently. The platform empowers you to attract genuine buyers across the globe and find the best possible deals. For effective marketing, you may add creative descriptions, professional photographs, floor plans, video tours, all needed documentation, and others to your listing.
6. Accept the Offer and Finalise the Deal
Once you list your house on a real estate marketplace, buyers will approach with their offers. Compare different offers and accept the best deal to proceed further. You must engage a solicitor to handle all the legal work and finalise the deal per the law.
7. Pay the Mortgage and Close the Deal
You have to pay the due mortgage to close the deal when selling a house with a fixed mortgage. The proceeds from the sale will go towards paying the outstanding mortgage and the leftover will be yours. After paying the mortgage you will be able to transfer the title documents with the help of a solicitor.
In conclusion, selling a house with a fixed mortgage is possible and completely legal. However, to ensure smooth sales, sellers need to consider some factors before listing a house with a mortgage for sale. Determining the due amount, obtaining the payoff letter, determining the net value of a house, and paying all due amounts from the sale proceeds are essential to selling a house with a fixed mortgage.
