When needing to sell a house fast, some people may consider a below-market-value sale. The “we buy houses in Murfreesboro, TN” team at My Tennessee Home Solution has advice about your options when going this route.
Common Reasons To Sell a Home for a Below-Market-Value Price
Some of the reasons people choose to sell a house for less than market value include:
- Selling to a family member
- Needing to move fast
- Offers are lower than expected
- The home needs major repairs
- Foreclosure is imminent
- You no longer want the home
Regardless of why you need to sell fast, a below-market-value offer might be the most logical option.
Consult With the Mortgage Holder When Considering a Low Offer
Can you sell your house for less than market value without consulting the mortgage lender? If you have a mortgage loan on the property, you might need permission to accept a low offer.
One of the key tips to sell fast is understanding exactly how much you owe on the home loan. If you are trying to sell the house for less than you owe, you’ll need the approval of the lender for what’s called a “short sale.” With a short sale, the mortgage holder allows you to sell the house and settle the mortgage for less than you owe, forgiving the extra amount.
You must prove that you’re having a financial hardship to qualify for a short sale. You may also need to prove that you’ve attempted to sell the home for a higher price but were unable to generate any offers. Even if you show the lender this information, it might not approve the short sale. If you can no longer make the mortgage payments, the lender might begin foreclosure proceedings.
Understanding Tax Implications of This Type of Sale
If you sell the home for below market value, you may trigger some unexpected taxes. If you’re selling to a family member at a low price, the family member may have to pay a gift tax. If you sell to an as-is cash home buyer at the same price you paid for the home, you can avoid a capital gains tax. Selling at a loss may give you an opportunity for an income tax deduction that offsets other gains.
Let the Home Buying Experts at My Tennessee Home Solution Advise You on Selling for Less Than Market Value
So, can you sell my house for less than market value? It depends on the circumstances, but you can often accept an offer that’s below the home’s appraisal value. If the home is worth less than you owe, the mortgage holder might have to approve this kind of sale. You might need to show the mortgage holder a comparative market analysis to explain why the offer below the appraised value is fair.The home buying experts at My Tennessee Home Solution can help. We’ll make a fast cash offer and help you understand your options. Call us today at (615) 933-5431.
