Location: Maryland
Submitted 08/01/12 01:42 PM

Q. I bought a house for $400k. I paid down mortgage to $375k so far. Can I sell house for $375k and walk away clean? Or do I need to sell for original price of $400k?

 

Answer #1
Submitted 08/01/12 02:02 PM
Andrea Bedard, M.A. ~ REALTOR® & Mil Spouse ~ Silver Spring, MD and beyond (Thompson Company Realtors): Agent in Silver Spring, MD Andrea Bedard, M.A. ~ REALTOR® & Mil Spouse ~ Silver Spring, MD and beyond (Thompson Company Realtors)
Agent
Silver Spring, MD

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A.

You'll be able to sell for what it is worth. How much you paid for your home and/or how much you owe is irrelevant when it comes to determining the value of your house. It depends on recent comparable sold properties in your neighborhood, condition of your home and competition in your subdivision.

The 375K would be your pay-off amount plus interest for the month. In addition you'll have closing costs: commission, closing fee, transfer & recordation taxes and any closing help for the buyer if negotiated.

You'll have to add all the closing cost to your pay-off amount and then see if you can sell it for enough to cover everything or to "walk away clean" as you put it. If you don't have enough equity then you would either have to bring money to the table or stay put.

Contact a Realtor to discuss your options, he/she will do a comparable market analysis for you to determine in what price range your list price would fall, taking recently sold properties and the condition of your home into consideration.

Feel free to contact me if I can be of further assistance.

 

Answer #2
Submitted 08/15/12 11:05 AM
Andrew Einsmann (Heymann Realty): Agent in Germantown, MD Andrew Einsmann (Heymann Realty)
Agent
Germantown, MD

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A.

The $375K is just the amount that you will have to payback the loan.  In Maryland, the real estate commissions are paid on the seller's side of transaction.  As a quick valuations, I say about 110% of what is owed to assure that you can get out of the property free and clear.  So at the end of the day, if the property is worth about $410K then you should be able to get out clear or even make money.

Answer #3
Submitted 08/15/12 04:45 PM
Stephen Franano (Kansas City Region Homes): Managing Broker in Overland Park, KS Stephen Franano (Kansas City Region Homes)
Managing Broker
Overland Park, KS

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A.

There are expenses associated with selling a home in addition to payoff

Answer #4
Submitted 08/20/12 05:55 PM
Richard Williams (National Association of Business Consulting): Real Estate Sales Representative in Rockville, MD Richard Williams (National Association of Business Consulting)
Real Estate Sales Representative
Rockville, MD

Contact Me

A.

Contact DC Wealthbuilders LLC, you can google them.
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