Selling a home can be a stressful enough process on its own, but adding financial pressure to the situation can make things tight. If a seller doesn’t have enough equity in their home, they may actually end up paying to sell their home. While it’s common to make money from the sale of your home, many sellers in this economy have experienced quite the opposite.

So why would a seller have to pay to sell their home?

Declining Real Estate Market – Many sellers know this all too well, since the bubble burst in 2006. If you purchased your home at the height of the market, you could be struggling to pay for a home that’s nearly half of its original value. Real estate is cyclical, so it’s important to always try to buy when the market is lower.

Not Enough Equity – Owning a home for a short period of time can put you behind, since closing costs can run 8-10% of your purchase price. Another reason you may have lost equity is in the form of a second loan or home equity line, where you borrowed against the value of your house.

Values Change – It’s becoming common for foreclosures and short sales to bring down home values in an entire neighborhood. Not only do home sales affect the value of your neighborhood. Often times added infrastructure or commercial real estate can drop home values. New high-rise buildings can easily block views and create more noise pollution, which can take a home value down.

Closing Cost Assistance – Sometimes the buyer is in need of closing cost assistance. While most Denver real estate agents will recommend that you go with the offer that keeps the most money in your pocket, there can be times when getting out of your house is the most important, and you don’t have the time to wait around for the best offer. If a buyer has submitted a reasonable offer, but needs the money to close, may sellers are willing to come out of pocket to sell their home.

Unexpected Repairs – A home may be under contract for enough to just break even, but until the home inspection is performed, the final sales price is yet to be decided. No seller wants to hear about a poor home inspection, but it’s very common for inspections to bring back thousands of dollars in work. Most buyers will want the items to be fixed or at least a credit towards fixing them themselves.

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com.

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