February was the slowest month for home sales in a decade in Memphis. According to data compiled by the Memphis Area Association of Realtors (MAAR) there were 1,000 homes sold in January 2023; down from more than 1,300 in January 2022, and 1,500 in January 2021. Only 917 homes sold last month, a 28,9% plunge in activity year over year, and the slowest month dating back to January 2012.
Downtown, Midtown, and East Memphis all have seen activity fall at least 25% year-to-date (YTD). East Memphis is also off to a rocky 2023, with prices falling the most out of the city’s core net neighborhoods. Activity tumbled 26.2%. The median sales price was down 17.8% to $185,000, and the average sales price fell 16.6%, to $233,000. It has been eight-consecutive months of slowing activity, and five-straight months where year over year activity was more than 20% off. For homeowners this situation can be an opportunity to find home buyers that can give them the highest price, without costly repairs or make updates before putting it on the market. If you decide to sell with a traditional agent on the Multiple Listing Service (MLS), they will likely recommend making updates to fetch a higher price. This is often time-consuming and costly. Keep in mind that there are also likely agent commissions that will be taken out of your proceeds at closing.
However, equity is a driving force in building wealth, and selling your house before building any equity can be disheartening and sometimes leaves sellers owing money at the closing table. So read on as we explore selling a house with no equity in Memphis.
Short Sale
After attaining the approval of their lender to sell for less than the amount still owed on the mortgage, short sales allow homeowners to sell a house with no equity in Memphis. In this real estate transaction, you’ll be doing a great deal of leg work to get offers approved, as the lender agrees to accept less than you owe for the mortgage, avoiding foreclosure. Expect your credit score to lower for the short sale, but not as low as a foreclosure would take it, and the information will appear for seven years. As for attaining a new mortgage, you may need to wait for one to four years, depending on many factors, unlike with a foreclosure, where the consequences are more severe. Professional buyers like those at Memfixerupper are highly seasoned local investors who want to help their neighbors here in Memphis sell their houses for the most profit in the way that is most beneficial to personal and financial circumstances. At Memfixerupper, our professional buyers will advise you of what they believe is the best way to sell your house with no equity, no matter how you decide to sell.
Owner Financing
One way to sell a house with no equity in Memphis is by finding a willing owner-financing buyer. These buyers typically don’t qualify for conventional loans and need time to get their finances together. There are many benefits to selling through owner financing if you’re willing to take on the risks of working with this category of buyers. Being mindful of the laws governing real estate, you can make a quick sale and earn an income stream from the property, while the buyer is responsible for the property, which reverts to you should they walk. In addition, you could take a financial hit if they vacate and leave your house in disrepair. Professional buyers like those at Memfixerupper can help you weigh the pros and cons of owner financing. Our professional buyers at Memfixerupper will detail the numbers you could expect to earn and the risks involved to help you understand the best sales method for your house, given your circumstances.
Direct Sale
The best way to sell a house with no equity in Memphis is by making a direct sale with a guaranteed closing within just days; ask us about a flexible date. You can avoid the hassles of a short sale or foreclosure altogether. Furthermore, you won’t need to worry about spending a penny out of pocket to prep or make repairs by selling directly to a professional buyer like those at Memfixerupper. In addition, you can skip the entire showing process with a direct sale because we buy houses in as-is condition at Memfixerupper, and our professional buyers pay cash for houses with no equity making the process fast and easy. Finally, we’ll compare our offer to all your options so you can make an educated decision because the professional buyers at Memfixerupper want you to feel good about working with us long after closing. Our offer is the amount paid at closing because of our full-service in-house team of industry specialists. Cash home buyers like us, can help you sell your house off-market for the highest price, without any work, in any condition. Your best option to sell a house with no equity in Memphis is a direct sale to a professional buyer at Memfixerupper. Call Memfixerupper at 901-450-5179.
At Memfixerupper we are working everyday to provide accurate information about buying and selling homes. We want to be a great friend to our community and for you to get to know our team. We had the opportunity to speak with our Administrative Leader, Melissa. Here are some of her ideas about being a home buying specialist.
– What is the hardest part of selling a house?
Deciding which direction to go when selling. Do I sell the home by myself, do I obtain a real estate agent, or do I use a real estate investor for an all cash offer? I hear these questions each day from people reaching out to us about selling their home. I try to encourage the homeowner to gather all their options.
– What are the hot areas in TN for selling homes?
The areas selling best have great school systems, convenient locations, and growing communities. Some of the areas include Bartlett, Germantown, Arlington, and Brighton.
– What is the best experience that you had working with someone that was selling his house?
On my first appointment experience I met a lady who was needing to downsize. She did not want to meet with a male representative. So I was nervous and excited to meet with her. During the tour of her home we connected through some beautiful portraits of her daughters. It is such a small world. Her daughters attended the same high school I attended. We also discovered we knew some of the same people. It was a great visit and exciting because we were able to make her selling experience easy and quick so that she could move to her new home.
– Describe in 3 words yourself
Dependable, Dedicated and Caring.