In certain circumstances, when the debts pile up, selling your most valuable asset seems like a good idea. Giving up your dream home isn’t an easy decision to make, but sometimes it looks like the only option you have to pay off all that debt is to sell your house. But, is it always the good idea?
First off, determine why you are in debt.
If you live in Milwaukee, Wisconsin, you have probably noticed that debt is quite common. In fact, New York Federal Reserve conducted a research according to which collective household debt in America was $12.73 trillion as of March 2017! Selling your house might seem like a quick fix, but it takes time. This is why you should first determine why you are in debt. Maybe you’ve bought a house too big and now you can’t pay the bills. Maybe you’re not that good at managing your money. Maybe something urgent happened, and you had to cover up for a lot of unexpected expenses.
Whatever the reason is, you should know that you shouldn’t rush to sell your house in Milwaukee. The risks can be too high and the process is time consuming so it isn’t recommended that you make that choice lightly. Below are some good reasons if you want to sell your house to pay off debt.
1. You Can’t Afford to Pay Your Mortgage
This is probably the only must-sell reason there is. When your mortgage costs you so much that you can’t afford to pay it anymore, you have no choice but to sell your house. In fact, under no circumstances should your mortgage be more than 25% of your monthly income. If you spend most of your money just trying to keep the roof over your head, then you know what should your next move be. The best option for you should be to sell your Milwaukee house and to buy a smaller and cheaper one. You can’t allow yourself to remain drowned in the debt. If you have to give an arm and a leg just to pay off a house that you can’t afford to enjoy in, the best thing you can do is to let it go.
2. You Are Thinking About Moving Anyway
When you are bored of your property and have a lot of debt, then using that unwanted house to get rid of the debt is an easy decision for you. However you must keep in mind that selling your house when you owe a lot of money can sometimes be more damaging than you think. There are many steps that you need to take before you make that sale.
First, you have to calculate is your house worth more than you owe. In order to do so, you should subtract your mortgage balance from your home’s value on the market. Then you should estimate the closing costs, such as agent commissions, insurance, cost of repairs and similar. If you want to avoid all of this, you can always opt to sell your house to a professional buyer in Milwaukee, who will buy your house as-is, without commissions. You should also ensure that you can afford your new living space, as you don’t want to end up living on the streets.
3. You Have Enough Equity to Pay off Your Debts
When you have a lot of equity in the property, selling your house is a good idea if you want to pay off your debts. However, when the prices are high and when you know that you still won’t have enough money to buy a new property, then giving up your biggest asset probably isn’t a good decision.
Downsize Your House
Another option that you can decide on that is less extreme than selling your house is to downsize your property. This works if your debt is smaller or if you don’t need money urgently. Smaller homes make smaller expenses and downsizing your home can help you save some money on the longer run. You should keep in mind that even downsizing your home has its own expenses, and that this is not a fast way to have income, so once again, it is really important to calculate all your costs.
Several advice to follow when making a sale on your property:
Think outside the box. When you have creative ideas about selling your house, you are improving your chances of making cash fast.
Selling house takes time and patience. You can’t just make a sale on your house over night. However, if you make a sale to a direct buyer such as Sparks Property Investors LLC, you can close in on your house fast and get paid in cash in as fast as a week!
Think Long Term
Will the sale of your house be worth it in several years? Do you have a good plan about further investing your money, paying out your debt and also finding a new place to live? This isn’t a decision that should be made over night and you should spend a lot of time thinking about the future and what it will bring if you really sell your house to pay off your debt.
If you are sure that giving up your house is worth it, but you don’t have the time or money to list it on MLS, pay agent’s commissions and to wait for a bank to approve the loan, then selling your house to a direct buyer is the best option for you. When you work with professional buyers, you don’t have to worry about unexpected costs and the time you will lose. We will buy your house fast and you will know up front what it is that you will make from the sale.