When a majority of homeowners in PA consider selling their home they are doing so with the hopes of generating as much profits off the sale as possible. Especially right now when purchasing their next home means facing an inventory shortage, higher prices, and higher mortgage rates. But there are some scenarios where a homeowner might sell for less than the market value the home is worth.
There are many reasons why a homeowner might sell their home for less than market value. Some PA homeowners wonder if it is legal to sell a home below its value, especially if they still carry a mortgage on the home. the short answer to this question is yes, a homeowner can sell their home for less than it is currently worth.
Why Would a PA Homeowner Sell for Less Money?
To sell the property as quickly as possible
Sometimes a homeowner is in need of getting a property out of their possession as quickly as they possibly can. This can happen for a number of reasons in itself including unexpected life emergencies that necessitate the need for a quick move. It could be as a result of a hasty divorce or a sudden passing away of a family member. It might be that the owner is facing financial hardship for a number of reasons and is trying to avoid having the home repossessed by the bank.
The home hasn’t been selling
Even in a sellers market where there is a very low inventory of homes and far more interested buyers than homes available a home can end up sitting on the market for a long amount of time. There might be a number of reasons why a home isn’t selling but the homeowner may look for new selling methods to help get the property off of their hands. A common strategy is lowering the listing price to help get the attention of interested homebuyers.
Keeping the home in the family
Sometimes a homeowner might be selling the property to a family member and want to give them the best deal possible on purchasing the home. This could be in the case of a parent keeping a family home in the family and selling it to children or someone simply owning an extra property they don’t utilize and wanting to bless the family member in need.
What to consider when selling a home below market value
Before lowering the sticker price of your Pennsylvania home in hopes of trying to get it sold you want to make sure that you carefully weigh the possible outcomes.
With every Pennsylvania home sale, there will be tax responsibilities on the seller. You want to make sure that you are well aware of all of the current tax legislation for selling a home in PA. Even if you are selling for a lesser amount of money you could still be subject to capital gains tax. If you were selling a home to a family member then inheritance tax may come into play. You want to make sure that your tax responsibilities will be able to be met with the amount of money you make from the home sale.
Money still owed on the property and the cost of selling
If you carry a mortgage on your home you want to make sure that you are able to pay the lender in full upon sale of the property. You want to ensure that you will have enough money from the sale to pay this off as well as pay off all the other fees and costs of selling your home including tax responsibilities, any possible agent commissions, traditional closing fees and filing paperwork, etc. If you find yourself needing to sell the property for less than you’ll owe you will want to contact your mortgage company first about the possibility of a short sale. You do not want to sell the home for less than you owe on it without clear and open communication with your lender.
Consulting professional help
Selling your home for less than it is worth can be tricky and you want to make sure that you are not getting into a detrimental situation. Contact a real estate agent or real estate lawyer to help you look over your home selling situation to determine if selling your property for less money is a good option for your personal situation. The real estate world can become confusing if you are not experienced and knowledgeable of its workings.
If you need to sell your home quickly and are in a position to be able to sell for less money it could be beneficial to help you get the property off of your hands. One strategy for selling a home quickly is to contact a cash buyer who can assess your property, make an offer on your home quickly, and close on the sale in a matter of days.
If you are interested in the option of selling your home quickly please contact us. We are reputable cash homebuyers here to help you relieve the stress of selling your home and help you sell quickly. Contact us anytime for more information about selling your PA home for cash.