A reverse mortgage, where equity in your home is exchanged for monthly payments, is a common way for retirees to supplement their income. If you are selling a property with a reverse mortgage, there are a few things you need to consider. Though it may seem like a daunting task, you can simplify the process by following these tips.
Calculate What You Owe
The first step is to determine what you owe on the loan. With a reverse mortgage, you only owe the money that you have received on the loan to date plus any fees and interest accrued.
Calculate the Home’s Value
Once you know what you owe, you have to determine what your home is worth. Your lender can provide you with a document that estimates the money needed to close the deal. This will show you all the fees required to pay off your loan. If you owe more than you can sell the home for, now might not be the ideal time to sell. Don’t forget that there are closing costs associated with selling a home— typically, as a seller, you should budget 6% of the home’s value for these costs.
Hire a Real Estate Attorney
When selling a property with a reverse mortgage, it is recommended to employ the services of a lawyer; in Seattle it is legally required. An attorney can help you confirm that the terms of the contract are favorable, as well as ensure that everything is completed correctly.
Find a Realtor
Working with a professionally licensed Realtor® to sell your home is always recommended. They can help navigate the complicated details involved in executing a contract and following all required laws. Having a real estate agent can also help you with the following:
· Listing Your Home
Real estate agents are experienced in writing compelling copy and hiring professionals to take appealing photos of your home. A great agent will write and post your listing, as well as handle all communication with potential buyers.
· Finding a Buyer
Once your listing is posted, your agent will help identify qualified buyers.
· Executing the Contract
Between signing the contract and closing, there are several milestones that need to be reached. Your agent will make sure everything goes smoothly and both parties are satisfied.
Selling a home with a reverse mortgage is slightly more complicated than a traditional real estate deal, but with the correct research and a little help from professionals, it can be a smooth process.
If you are interested in selling your home in the Seattle area, we can help simplify the process and make sure you close the deal swiftly and stress-free. Contact us today to help!