Selling Pure Equity Real Estate

Benefits of Selling a Home

  • Higher Profit: Since there is no outstanding mortgage, you keep the full sale price (minus transaction costs like agent commissions, taxes, and fees).
  • Faster Sale Process: Without the need to pay off a mortgage or settle with a lender, the closing process may be faster and simpler.
  • Stronger Negotiation Position: As a seller with pure equity, you have more flexibility in negotiations, as you aren’t pressured by a mortgage or financial obligations to sell quickly.
  • No Mortgage Payoff Process: You won’t need to deal with paperwork or delays related to paying off a mortgage at closing.
Lake Worth

Considerations

  • Tax Implications: Depending on how long you’ve owned the property and the amount of profit from the sale, you may face capital gains taxes. If it’s your primary residence and you’ve lived there for at least two years, you may qualify for tax exclusions (up to $250,000 for single filers and $500,000 for married couples).
  • Opportunity Cost: By selling a property you own outright, you are liquidating an asset, which could be earning value through appreciation or rental income. You should consider whether it’s the right time to sell.