Yes, you can sell your house even if you still have an outstanding mortgage balance. According to data from the National Association of REALTORS®, existing home sales reached 4.06 million on a seasonally adjusted annual basis in September 2025, and most of these involved sellers who hadn't fully paid off their mortgages.
From an operational standpoint, this is the standard process we handle every day in the mortgage industry. When you sell your property, the proceeds first pay off your remaining mortgage balance, then cover your closing costs and liens, with whatever's left going directly to you.
What makes 2026 interesting for sellers is the equity position most homeowners are in. According to Cotality's Q2 2025 Homeowner Equity Report, the average mortgage-holding homeowner has accumulated approximately $307,000 in home equity. That's a substantial cushion between what you owe and what your home is worth.
You're not creating extra complications by having a mortgage. The title company, your lender, and the buyer's lender all work together to ensure your mortgage gets paid off correctly at closing. Having a mortgage doesn't complicate the sale, it's just one of several financial transactions that happen simultaneously.
When my wife and I sold our place in Louisville last year to upgrade for our three kids, I was surprised how smoothly it went once we understood the process. Our youngest was starting kindergarten and we needed more space for all the sports equipment - between baseball, soccer, and basketball, we were drowning in gear. The equity we'd built up over seven years gave us options we didn't realize we had.
You need to know your true equity position before planning your sale. Home equity is the difference between your home's current market value and what you still owe on your mortgage. This number determines not just whether you can sell but how much money you'll walk away with.
Let's break down a real example. Your home is currently worth $450,000 based on recent comparable sales. You owe $215,000 on your loan. Your equity position is $235,000 - what you'd have available after paying off the mortgage, before closing costs.
According to data from ICE's June 2025 Mortgage Monitor, U.S. mortgage holders collectively hold $17.6 trillion in home equity, with $11.5 trillion considered "tappable". That means homeowners could access this equity while maintaining at least 20% ownership stake.
Your equity comes from two sources. Every monthly payment reduces your principal balance, slowly increasing your ownership stake. Market appreciation increases your home's value over time. While price growth moderated in 2025, Cotality reports that homeowners are still sitting on substantial equity gains from recent years.
Location matters enormously. Connecticut homeowners gained an average of $37,350 in equity year-over-year in Q2 2025, while New Jersey added $36,234, and Rhode Island saw increases of $31,226. Meanwhile, Florida homeowners saw equity decline by approximately $32,115, and California lost about $23,697 in the same period.
If you have a second mortgage or home equity line of credit, you need to account for those balances too. Your true equity is your home's value minus ALL outstanding loans secured by the property. A $215,000 first mortgage plus a $35,000 HELOC means your total debt is $250,000.
Finding your exact loan balance is straightforward. Most mortgage servicers provide online access where you can see your current principal. But don't just use this number for your payoff. When you actually sell, you'll need a payoff quote that includes interest accrued up to your closing date.
Here's how we've optimized this process: contact your servicer and request a payoff statement, which includes your principal, accrued interest, and potential prepayment penalties. This payoff amount is typically valid for 30 days. If you close before the expiration date, you'll be refunded any excess interest.
Understanding your equity isn't just math, it shapes your entire selling strategy. Strong equity gives you flexibility to price competitively, make repairs, or offer buyer concessions. Limited equity means you need to be precise with pricing and minimize selling costs.
Timing a home sale involves balancing multiple factors that don't always align perfectly. You're weighing personal circumstances against market conditions, interest rate trends against local inventory levels.
Start with personal timing. Why are you selling? If you're relocating for a job that starts in three months, your timeline is decided. If you're downsizing or moving to a different neighborhood, you have flexibility to wait for optimal conditions.
Market conditions in 2026 present a mixed picture. According to the National Association of REALTORS®' September 2025 data, existing home sales increased 1.5% month-over-month, and NAR's Chief Economist Dr. Lawrence Yun noted that "falling mortgage rates are lifting home sales" while "improving housing affordability is also contributing to the increase". More buyers entering the market creates more potential competition for your property.
Inventory levels matter significantly. NAR reports inventory is "matching a five-year high, though it remains below pre-COVID levels." Current inventory sits at approximately 1.55 million homes, representing about 4.6 months of supply. Traditional wisdom considers five to six months a balanced market, so we're approaching equilibrium after years of severe shortage.
Mortgage rates play a huge role in buyer behavior. After spending much of early 2025 above 7%, rates have trended downward recently. Lower rates improve affordability for buyers, potentially expanding your pool of qualified purchasers. But if you're buying another home after selling, those same lower rates benefit you too.
Seasonal patterns still matter. Spring brings the highest number of buyers, with families wanting to move during summer break. Fall can also be strong as people try to settle before holidays. Winter generally sees slower activity, though you may encounter more serious buyers.
Geographic considerations matter more than most sellers realize. According to Bankrate's analysis of July 2025 data, the median home price nationally reached $422,400, a record high for July. Regional differences are substantial. Northeast markets have generally been stronger, while some Southern and Western markets have cooled.
Your local market might look completely different from national trends. A neighborhood with strong schools and limited inventory might be hot even in a cooling market. This is where a good local agent becomes invaluable.
Consider your ability to find replacement housing. If you're selling in a tight market, buying your next home might be challenging. Some sellers successfully sell but struggle to find something suitable to buy, forcing them into temporary housing. You need a plan for where you're moving before you list.
Can you afford to wait? If home values in your area are still appreciating, waiting six months might increase your equity by $10,000 or more. If prices are softening, waiting could cost you. Similarly, if mortgage rates are falling, buyers might be more aggressive soon. If rates are rising, the buyer pool might shrink.
Setting your listing price is the single most important decision in your entire selling process. Price too high and your home sits, becoming stale and eventually requiring reductions that make buyers suspicious. Price too low and you leave money on the table.
Everyone wants maximum price for their home. That's natural. But homes sell for what buyers are willing to pay based on comparable properties, not what sellers wish they could get. The market sets the price.
A comparative market analysis is your foundation for smart pricing. This involves analyzing recent sales of similar homes in your neighborhood - properties with comparable square footage, bedrooms, bathrooms, lot size, condition, and amenities. Your agent should provide this analysis, showing what similar homes actually sold for.
Pay attention to days on market for those sales. Homes that sold quickly, within the first week or two, were likely priced at or slightly below market value. Homes that took three months probably started too high and required price reductions.
The cycle time between listing and closing matters for your planning. In current conditions, you're typically looking at 30-60 days from listing to closing for a well-priced home in good condition. Properties that need work or are priced aggressively might take 90 days or more. Every additional month is another month of mortgage payments, insurance, utilities, and maintenance.
Generating multiple offers almost always results in a higher final price than a single offer, even if you price slightly below market to attract that competition. List at $485,000 and get one offer at $475,000, you'll probably negotiate to around $480,000. List at $479,000 and get four offers, you might end up at $490,000 or higher as buyers compete.
The appraisal issue is significant. Most buyers need mortgage financing, which requires an appraisal. The appraiser looks at the same comparable sales your agent analyzed, plus the home's condition. If your listing price is far above what comparables support, the appraisal will likely come in low, potentially killing the deal.
You list at $510,000 and a buyer agrees with 10% down, financing $459,000. The appraisal comes back at $480,000. Now the lender will only loan based on the appraised value. The buyer suddenly needs $30,000 more in down payment, or you need to lower your price to $480,000, or the deal falls through. This scenario plays out regularly with overpriced properties.
The condition of your property relative to comparables matters enormously. If comparable homes that sold for $475,000 were updated with new kitchens and bathrooms, while yours has original fixtures from 2005, you can't expect the same price without adjusting.
Consider pricing psychology too. A home listed at $499,900 will show up in searches for buyers looking up to $500,000, while $505,000 won't. Those psychological thresholds affect your buyer pool.
One thing that keeps me up at night: sellers who refuse to price realistically because of emotional attachment. I've seen beautiful homes sit for months, racking up carrying costs, simply because the owner wouldn't listen to market feedback. Eventually they reduce to where it should have been originally, but they've lost time, money, and negotiating leverage.
Once you've determined pricing, the next phase is preparing your property to appeal to the broadest buyer pool. This isn't about perfection, it's about presenting it so buyers can envision themselves living there.
Deep cleaning is non-negotiable. Buyers will walk through every room, open closets, check under sinks. Professional deep cleaning typically costs $300-600 depending on size, but it's one of the best investments you can make. We're talking baseboards, light fixtures, inside cabinets, windows, all those spots that accumulate grime.
Decluttering serves a different purpose. You want to showcase your home's space and storage capacity, which is impossible when closets are stuffed and countertops are crowded. The goal is removing about 30-50% of your belongings, creating spaciousness and allowing buyers to focus on the home itself.
This is where sellers often struggle. These are your things, your memories, your daily life. Buyers need to see themselves in the space. Pack away family photos, collectibles, anything highly personal or controversial. Sports team stuff, political items, religious symbols - these can all trigger negative reactions.
Home staging ranges from simple furniture arrangement to full professional staging. At minimum, ensure furniture is arranged to show traffic flow. Remove oversized pieces that make rooms feel cramped. Make sure each room has a clear purpose - a bedroom shouldn't also be a home office, craft room, and storage area all at once.
Professional staging typically costs $2,000-5,000 for vacant homes or $1,000-2,000 for occupied homes. Whether this makes sense depends on your market and price point. Higher-end properties almost always benefit from professional staging.
Small improvements and repairs offer disproportionate returns. We're not talking kitchen renovations - those major projects rarely pay for themselves when selling. Focus on fixes that signal the home has been maintained. Patch and paint walls in neutral colors. Replace dated light fixtures and cabinet hardware. Fix leaky faucets and running toilets.
Curb appeal matters more than almost anything because it creates buyers' first impression. A buyer who isn't impressed by your exterior might not even come inside. Simple improvements like fresh mulch, trimmed shrubs, mowed lawn, and a cleaned driveway make a substantial difference. If your front door is dinged up or faded, spend $200-400 on paint or replacement.
The error I see repeatedly: spending money on improvements they personally would enjoy rather than improvements that appeal to buyers. You might love that bold paint color but buyers typically prefer neutral tones.
Major repairs present a different calculation. If your roof is obviously failing or your HVAC doesn't work, buyers will either walk away or demand credits that exceed the repair cost. In these cases, making the repair before listing often makes sense.
Professional photography is essential in 2026's market where nearly all buyers start online. Your listing photos determine whether buyers click to learn more or scroll past. Budget $200-500 for a professional real estate photographer. The additional investment in drone photography for larger properties can also pay dividends.
Many sellers focus entirely on sale price without fully accounting for closing costs. Understanding these expenses upfront helps you calculate actual net proceeds and avoid surprises.
Real estate agent commissions represent the largest single cost, traditionally running around 5-6% of the sale price split between listing agent and buyer's agent. On a $450,000 sale, that's $27,000-36,000 going to agent compensation. These rates are negotiable and have become more flexible following recent legal settlements and regulatory changes.
The commission structure has evolved for 2026. Sellers should understand they're paying their listing agent's commission and potentially contributing to buyer agent compensation, but these are separate decisions negotiated in the listing agreement. Some sellers choose to offer lower buyer agent compensation or none at all, understanding this might limit their buyer pool.
Title insurance and related closing costs typically fall partially on sellers. The owner's title policy, which protects the buyer against future claims on the property, is traditionally paid by the seller in many markets. This usually costs 0.5-1% of the purchase price. Title company fees for conducting the closing, recording the deed, and facilitating the transaction add another $500-1,000.
Transfer taxes and recording fees vary dramatically by location. Some states and localities impose significant transfer taxes, in some jurisdictions reaching 2-4% of the sale price. Other areas have minimal fees. Your settlement agent can provide exact figures.
Prorated property taxes need adjustment at closing. If you've prepaid taxes for the full year but sell halfway through, the buyer reimburses you. Conversely, if taxes are due and unpaid, you'll owe that amount at closing. The title company calculates these prorations down to the day.
HOA fees require similar proration if you live in a community with homeowners association dues. You'll also need documentation of paid HOA fees and any outstanding violations must be resolved before closing. Some HOAs charge transfer fees or capital contribution fees when properties change hands.
Attorney fees apply in states that require attorney involvement in real estate transactions. Budget $500-1,500 for attorney services depending on your location and transaction complexity.
Repair credits or concessions negotiated during inspection reduce your net proceeds dollar-for-dollar. If inspection reveals your roof needs work and you agree to a $5,000 credit rather than making the repair, that comes directly out of your proceeds.
Outstanding liens and judgments must be paid before you can transfer clear title. This includes your mortgage but also any second mortgages, home equity lines of credit, mechanic's liens from contractor work, judgment liens from lawsuits, or tax liens. The title search will identify all liens that need clearing.
Let's put this together with a realistic example:
That's still significant money but substantially less than the $235,000 equity you calculated by simply subtracting your mortgage from the sale price. Running these numbers accurately before you list helps set realistic expectations.
Understanding the mechanics of paying off your mortgage through a home sale helps demystify a process that concerns many sellers. The good news is the closing agent handles most coordination.
When you list your home and have a contract, one of the first steps your title company takes is ordering a payoff statement from your mortgage servicer. This document shows your current principal balance, any interest that will accrue through the anticipated closing date, and potential prepayment penalties.
Payoff statements are typically valid for 30-45 days. The lender calculates interest daily, so if your closing date changes, the payoff amount changes. That's why you'll see a per diem interest charge listed - the additional amount you'll owe for each day beyond the good-through date.
Prepayment penalties are relatively rare on mortgages originated in recent years but they exist on some loans. If your loan includes a prepayment penalty, it will be clearly stated on your payoff statement. These penalties typically apply only during the first 3-5 years and can be substantial - sometimes 2-3% of the outstanding balance.
The actual payment happens at closing through the title company. From the buyer's funds, the closing agent wires payment directly to your mortgage servicer. You don't personally handle this transaction.
Looking at our throughput metrics, smooth closings depend on accurate coordination between your lender, the buyer's lender, and the settlement agent. The title company needs to ensure your loan gets paid off correctly, your lien gets released so clear title can transfer to the buyer, and all other obligations get met.
One thing that sometimes surprises sellers: you'll continue making your regular mortgage payment while your home is on market and even under contract. Don't stop paying your mortgage just because you have a buyer. Continue making payments until your servicer confirms the payoff was received. Any final adjustments for overpayment get sorted out after closing.
If you have a second mortgage or home equity line of credit, those must be paid off simultaneously or you need to work out subordination agreements. Multiple loans secured by your property create multiple liens that all need clearing to provide the buyer with clear title.
Mortgage payoff refunds sometimes occur after closing. If you've been paying into an escrow account for property taxes and insurance, and there's money remaining, the servicer will refund that balance. This typically happens 2-4 weeks after closing.
Negative equity occurs when you owe more on your mortgage than your home's current market value. This situation is less common in 2025 than during previous downturns but it still affects some homeowners.
Selling with negative equity is challenging because you'll need to bring cash to closing to cover the difference between your sale proceeds and your mortgage payoff. On a $450,000 loan balance with a home worth only $420,000, you'd need to bring $30,000 to close plus usual selling costs. For many homeowners, this simply isn't feasible.
The alternatives when you're underwater include waiting for market appreciation to build equity back up, pursuing a short sale with your lender's cooperation, or in worst-case scenarios, facing foreclosure.
A short sale involves negotiating with your lender to accept less than the full loan balance as payment in full. The lender agrees to release its lien even though they're not receiving everything owed. This requires lender approval, extensive documentation of financial hardship, and typically takes much longer than a standard sale.
Short sales are complicated and uncertain. The lender's loss mitigation department reviews your financial situation, the property's value, and whether accepting a short sale makes more sense than foreclosure. You'll need to demonstrate genuine financial hardship - job loss, medical expenses, divorce, or other circumstances that prevent continued mortgage payments.
The impact on your credit is significant but less severe than foreclosure. A short sale typically damages your credit score for 2-3 years and may affect your ability to obtain another mortgage during that period. This is generally preferable to foreclosure, which can impact your credit for 7 years.
Before pursuing a short sale, explore other options. Can you refinance to reduce your payment? Do you qualify for loan modification programs? Can family members help you stay current until equity rebuilds?
If you're struggling with mortgage payments but not yet in default, contact your servicer immediately. They have various loss mitigation programs that might help - forbearance plans, repayment plans, loan modifications that adjust your interest rate or extend your loan term. At AmeriSave, we work with borrowers facing hardship to find solutions that avoid foreclosure when possible.
Some homeowners want to secure financing for their next home before selling their current property. This creates a temporary situation where you're carrying two mortgages simultaneously.
Lenders evaluate your debt-to-income ratio when determining how much you can borrow. DTI represents your total monthly debt payments divided by your gross monthly income. If you're already paying a mortgage on your current home, that payment gets included in your DTI calculation.
You earn $10,000 monthly gross income. Your current mortgage payment is $2,200 per month. You're applying for a new mortgage with a $2,800 payment. Your DTI calculation includes both payments: ($2,200 + $2,800) / $10,000 = 50% DTI. Most conventional mortgage programs cap DTI at 43-45%.
Unless you have substantial income or very low debt otherwise, carrying two mortgage payments simultaneously might push you above qualification thresholds. Even if you intend to sell your current home immediately after buying the new one, underwriting guidelines typically require including both payments unless certain conditions are met.
Some lenders will exclude your current mortgage payment from DTI calculations if you have a signed purchase contract on your existing home with a closing date scheduled. This requires showing the underwriter your signed contract, proof that the buyer is qualified to close, and evidence that closing will occur within a short timeframe.
The down payment calculation becomes more complex when buying before selling. You'll need enough cash for your down payment on the new home PLUS reserves to cover both mortgage payments for several months. Lenders typically require 2-6 months of reserves.
If you're planning to use proceeds from selling your current home as your down payment for the new home, timing becomes critical. Bridge loans can provide short-term financing to access your equity before closing on your sale but these are expensive and risky.
Most homeowners are better off selling first then buying. This avoids the financial strain of dual payments, provides certainty about your available down payment, and gives you stronger positioning as a buyer since you won't need a home sale contingency.
At AmeriSave, we work with buyers facing these timing challenges regularly. The key is thorough pre-planning - understanding your qualification picture, knowing your DTI with and without your current mortgage payment, and having clear documentation ready if you need to demonstrate an imminent sale.
Understanding the tax consequences helps you plan appropriately and avoid surprises when filing your return. The tax treatment of home sale profits is generally favorable.
The primary residence exclusion allows single filers to exclude up to $250,000 in capital gains from a home sale, while married couples filing jointly can exclude up to $500,000. If you bought your home for $300,000 and sell it for $550,000, your $250,000 profit is entirely tax-free if you're married filing jointly and meet eligibility requirements.
To qualify, you must have owned and used the property as your primary residence for at least two of the five years immediately preceding the sale. The ownership and use requirements don't need to be concurrent.
Calculating your gain involves subtracting your cost basis from your sale proceeds. Your cost basis includes the original purchase price plus any capital improvements. If you bought for $300,000 and spent $40,000 on a kitchen renovation, your basis is $340,000. Sell for $550,000 and your gain is $210,000, which falls entirely within the married-filing-jointly exclusion.
Capital improvements that increase your basis include room additions, new roofs, HVAC system replacements, kitchen and bathroom renovations, finished basements, new decks or patios, and other substantial upgrades. Regular maintenance like painting, fixing leaks, or replacing broken appliances doesn't count.
If your gain exceeds the exclusion amount, you'll pay long-term capital gains tax on the excess at rates of 0%, 15%, or 20% depending on your overall income level.
You should keep detailed records of all capital improvements throughout your ownership. Save receipts, contracts, and documentation of major projects. These records support your cost basis calculation if questioned by the IRS.
State tax implications vary dramatically. Some states conform to federal treatment while others impose their own rules. Be sure to understand both federal and state tax treatment when planning your sale.
Reporting requirements apply even when your gain is entirely excluded. You must report the sale on your tax return using Form 1040 and Schedule D, even if you owe no tax.
Millions of people sell their homes before paying off their mortgages every year. To be successful, you need to know how much equity you have, set the right price based on market data, get the property ready to appeal to buyers, and manage the timeline well.
Current market conditions in 2026 offer good chances for sellers, especially those who have built up a lot of equity over the years through ownership and rising market prices. Existing home sales have been going up month after month, and mortgage rates have come down from their highs in early 2025. This has made things easier for buyers than they were in 2022 and 2023.
The first things you should do in your action plan are to find out how much you owe on your mortgage, look at the local market to see what prices are reasonable, and clean, declutter, and fix up your home so it's ready to sell. Find a real estate agent who knows your area well and can give you pricing advice based on data.
The goal isn't just to sell your home; it's also to move into your next home successfully while getting the most money possible. Knowing the whole process from listing to closing helps you make smart choices at every stage, whether you're upgrading, downsizing, moving for work, or changing your lifestyle.
If you're ready to look into ways to pay for your next home, AmeriSave has a simple prequalification process that will show you exactly how much house you can afford. You can start your application online or talk to one of our Home Loan Experts, who can help you with the process and answer any questions you have about your situation.
If you sell your house before paying off your mortgage, the money you make from the sale goes first to paying off the rest of the mortgage. The title company that is handling your closing will work directly with your servicer to make this payment. The money you get after paying off your mortgage goes toward your closing costs, any agreed-upon seller concessions or repair credits, and real estate agent commissions. After paying all these bills, any money left over is your profit from the sale. You don't have to worry about paying off the mortgage yourself because this process happens automatically as part of closing settlement. The title company takes care of all the payments and distributions based on the settlement statement that you will read and sign at closing.
Yes, and most sellers do this. Your profit is the sale price of your home minus the amount you still owe on your mortgage and all the costs of selling it. According to Cotality's Q2 2025 data, the average homeowner with a mortgage has about $307,000 in equity. This means that most sellers make a lot of money even after paying off their loans. The most important thing is to have enough equity so that the price you sell for is higher than your mortgage balance and all of your selling costs. Many homeowners now have a lot of equity because the real estate market has gone up a lot in the last few years. However, the amount of equity varies a lot depending on where you live and how long you've owned your home.
You can legally sell your home as soon as you buy it. The law doesn't require a minimum amount of time to own something. Usually, it's not a good idea to sell something very quickly because you'll have to pay for the transaction twice in a row without building up any equity through appreciation or paying off the mortgage. People who work in real estate and mortgages usually say that you should keep your property for at least two years, and five years or longer is even better. During this time, you can build equity by making regular payments and seeing your property value rise. You can also get back your closing costs, avoid short-term capital gains taxes, and qualify for the primary residence capital gains tax exclusion, which requires two years of ownership and use. Some mortgage loans have penalties for paying off the loan early, but these are not very common on newer conventional mortgages.
If an appraisal comes in lower than your contract price, you'll have to renegotiate. If you agreed to sell for $475,000 but the appraisal says it's worth $460,000, the buyer's lender will only give them money based on the appraised value, not the contract price. This means that the buyer would need to bring an extra $15,000 in cash to close at the original price. Alternatively, you could lower your price to match the appraisal, or you could meet somewhere in the middle. Some contracts have appraisal contingencies that let buyers back out if the appraisal comes in low. The best way to avoid this problem is to set a realistic price for your home based on sales of similar homes from the start. This will make sure that your price is backed up by recent market data that appraisers will use.
Please talk to a tax professional for a real answer, but here’s what we’ve got for you. The primary residence exclusion means that most people who sell their main home don't have to pay capital gains tax. If you file as a single person, you can leave out up to $250,000 in gains. If you file as a married couple, you can leave out up to $500,000. You must have owned and lived in the home as your main home for at least two of the five years before selling it to be eligible. If you bought your home for $350,000, made $30,000 in improvements, and sold it for $600,000, your profit is $220,000, which is all tax-free if you file jointly as a married couple. Only gains that are more than these amounts are taxed at capital gains rates. To figure out your cost basis and maximum exclusion amount when you sell, keep detailed records of all the capital improvements you made while you owned the property.
Yes, but being behind makes things more difficult, and you have to catch up on missed payments before or at closing. You can use the money from the sale to pay off your loan and bring it up to date at the same time if you have enough equity that the sale proceeds are more than your total loan balance and all of your missed payments. If you are already in foreclosure, you will need your lender's help and permission to go through with a sale. In these kinds of situations, time is very important. The more behind you are, the harder it gets. If you can't catch up and don't have enough equity, a short sale where your lender agrees to take less than the full balance may be your best option. However, this needs lender approval and can hurt your credit, making it harder to get another mortgage for a few years.
In the current market, it will probably take 60 to 90 days from the day you list your home to the day you close. However, this can change a lot depending on where you live, what type of property you have, and how much you want to pay. The steps in the process are roughly as follows: It usually takes one to two weeks to get ready to list a property, 30 to 45 days to market it and find a buyer for well-priced properties in most markets, and 30 to 45 days from the time the buyer accepts the contract to the time the sale is final. This is to give time for inspections, appraisals, and the buyer's financing. Homes that are priced well and are in strong markets might sell and close in 45 days. Homes that are priced aggressively or are in slower markets might take 120 days or more. Cash buyers can close much faster because they don't need a mortgage. Sometimes it only takes two to three weeks from signing the contract to closing.
You have to pay off any liens on your property before the buyer can get the title. If you have a first mortgage and a second mortgage or home equity line of credit, the money from the closing will pay off both loans in the order of their importance. First, second, and then any other liens get paid off. The sale price minus all mortgages and liens and your closing costs is your net proceeds. The title search that is done during your transaction will find all liens on the property, and the title company makes sure that all of them are paid off correctly at closing. If you don't have enough equity to pay off all of your liens and your selling costs, you'll need to bring cash to closing or work out a short sale with your lenders, in which they agree to accept less than the full amount you owe.
Don't make upgrades that you would enjoy; instead, focus on repairs and improvements that will help the home sell faster or stop buyers from asking for credits. Before listing, you should definitely take care of important repairs like fixing leaky faucets, filling in holes in walls, and taking care of obvious maintenance issues. Small improvements like new paint in neutral colors, new light fixtures, new cabinet hardware, and better curb appeal usually pay off well. When you sell your house, major renovations like remodeling the kitchen, bathroom, or adding a room usually don't pay for themselves. When you do big projects, you usually only get back 50 to 75 percent of what you spent. The only time you shouldn't do this is when there are major problems with the system, like a broken HVAC system or a roof that is falling down. In these cases, it is usually better to fix the problem before putting the house on the market than to deal with buyer complaints and demands for credit that could stop your sale.
Planning a simultaneous purchase and sale takes a lot of work and usually involves one of three methods. You can sell your current home and then move into a temporary place while you look for a new one. This is the safest option for your money, but it means moving twice. You can put a home sale contingency in your purchase offer, which means that your purchase depends on selling your current home. However, this makes your offer weaker, and in competitive markets, many sellers won't accept contingent offers. If your income can handle both payments for a short time, you can qualify for both mortgages at the same time. You can then quickly sell your current home after buying the new one. However, this is stressful on your finances and requires enough savings. To get a better idea of your qualifications with and without your current mortgage payment, work closely with both your real estate agent and your mortgage lender. Plan your timeline carefully to cut down on the time that you have to pay for both at the same time.
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