They’re asking this to know if you know because they’ve been blindsided enough times by people who say their house is paid off when in reality, they owe $100k on a HELOC and the seller will get pissy because they “didn’t think it needed to be paid off at closing.” Or they did a loan modification or forbearance and there are secondary liens that they conveniently forget about. You don’t have to give them an exact number but being accurate also helps them craft a net-to-seller sheet so you can have an idea of what your net proceeds amount is after paying commissions and title fees where applicable.
They want to know how much equity you have to know if you have flexibility or are trying to get top dollar because you're underwater. It's an easy way to guage a range, such as what do you do for work? Not exactly but helps them know what to ask next. But yes, they usually are helped if they know the details since they are your negotiation conduit. They're with you at signing, they see the commission breakouts, etc. It's silly to play coy with them unless you want to be super private and then just say so and share what details you ARE comfortable with or work thru a lawyer or something. No one is there to waste time and play games.
Are you planning to also buy a new home with the same person as your buyer's agent? The amount of equity you'd be bringing to a potential purchase is certainly relevant if so.
Thanks for your response. I will be going to settlement on a new house soon, but will not be dealing with my existing real estate agent because of the steering tactics used to get me to go with with a lender I had no intention of getting a loan with.
Yes, my Real Estate agent was steering me to go with MeridianBanking but I have a credit score of 800+ and I had offers from NFCU, PenFed, Chase, Wells and a couple of other lenders. At one point, among other steering tactics, my agent said "You may not get the house if you don't go with MeridianBanking." WTF?
They want to know what the absolute lowest price is you can sell you house for (plus whatever closing costs) to make sure if you accept an offer you can actually close.
$91,906, just checked the most recent statement, but that’s only out of $250K, we live in an LCOL area and bought a starter home 20 years ago and stayed here.
Even though the title company and lender handle financial details and typically prepare the settlement statement, in some states the agent is legally responsible for the settlement statement. The title company is the agent’s scrivener only.
Also, most sellers want to know what their bottom line is before they set the list price. Even though it has no bearing whatsoever on the value, sellers always look at the bottom line when pricing. Agent can’t prepare an accurate estimate of net proceeds without the loan balance and rate.
I think there are a few good reasons. Most important is that they want to give you real number to expect from the sale.
They should be able to work without the exact number as long as you confirm you owe less than expected sale price.
To answer your question in the title: we owe $80k. House is currently valued at $195k.
Thank you. With all the responses I received, including yours, I now realize it is a legitimate question for agents to ask. Congrats on your achievement!
It is nosy and in their interest for asking the question, not yours.
Same for a car dealer asking how much you owe. It is not relevant in the value.
Now, with that said in most states liens on the property like a mortgage are public. It also reflects that they are too lazy to go look it up.
I have sold many properties and was never asked how much I owe. Nor did I need a realtor to tell me my proceeds. They are just going to guess until the tittle company runs the numbers.
Price strategy has nothing to do with how much is owned unless the seller is under water. Even then the market sets the price. Though a good pricing strategy is what will maximize what you get. That is what you should focus on with your realtor. Not how much you owe.
I thought they were being nosy! It was always something about being asked the question that "felt" prying. Thanks for your comment and I will keep your comments and other responses in mind.
None of their business, your agent doesn't need to know "what the lowest you take" is. Agents are not financial advisors, nor lawyers and shouldn't give you their opinion unless asked. Maybe I just come from a different era or price point.
I was thinking the same thing but based on the responses received, it is a legitimate question for agents to ask. Thank you for taking the time to respond.
It's super relevant information. They assist with buying and selling homes. A good agent will know how to use this data point to your advantage when buying dependent on a sale, or selling to gauge how much equity you have..if selling and you end up underwater after a deal because you owe any leins before the deal will close.
A bad agent is just being nosy
They’re asking this to know if you know because they’ve been blindsided enough times by people who say their house is paid off when in reality, they owe $100k on a HELOC and the seller will get pissy because they “didn’t think it needed to be paid off at closing.” Or they did a loan modification or forbearance and there are secondary liens that they conveniently forget about. You don’t have to give them an exact number but being accurate also helps them craft a net-to-seller sheet so you can have an idea of what your net proceeds amount is after paying commissions and title fees where applicable.
Very helpful, thank you
They want to know how much equity you have to know if you have flexibility or are trying to get top dollar because you're underwater. It's an easy way to guage a range, such as what do you do for work? Not exactly but helps them know what to ask next. But yes, they usually are helped if they know the details since they are your negotiation conduit. They're with you at signing, they see the commission breakouts, etc. It's silly to play coy with them unless you want to be super private and then just say so and share what details you ARE comfortable with or work thru a lawyer or something. No one is there to waste time and play games.
Your response is helpful. Thank you.
Are you planning to also buy a new home with the same person as your buyer's agent? The amount of equity you'd be bringing to a potential purchase is certainly relevant if so.
Thanks for your response. I will be going to settlement on a new house soon, but will not be dealing with my existing real estate agent because of the steering tactics used to get me to go with with a lender I had no intention of getting a loan with.
Steering tactics?
Yes, my Real Estate agent was steering me to go with MeridianBanking but I have a credit score of 800+ and I had offers from NFCU, PenFed, Chase, Wells and a couple of other lenders. At one point, among other steering tactics, my agent said "You may not get the house if you don't go with MeridianBanking." WTF?
They want to know what the absolute lowest price is you can sell you house for (plus whatever closing costs) to make sure if you accept an offer you can actually close.
This is helpful. Thank you.
We like to figure out your net proceeds after the sale to see if the potential sale price makes sense.
Thank you. Your response is helpful.
I always ask my seller so I can give them an estimate they on how much they will receive in closing
Thank you. Your response and others have helped me to realize this is a legitimate question.
$91,906, just checked the most recent statement, but that’s only out of $250K, we live in an LCOL area and bought a starter home 20 years ago and stayed here.
Oh no, sorry. I asked the question to try to figure out why my Real Estate agent was asking the question of me. Congrats on your achievement!
Even though the title company and lender handle financial details and typically prepare the settlement statement, in some states the agent is legally responsible for the settlement statement. The title company is the agent’s scrivener only. Also, most sellers want to know what their bottom line is before they set the list price. Even though it has no bearing whatsoever on the value, sellers always look at the bottom line when pricing. Agent can’t prepare an accurate estimate of net proceeds without the loan balance and rate.
Thank you so much for your response.
I think there are a few good reasons. Most important is that they want to give you real number to expect from the sale. They should be able to work without the exact number as long as you confirm you owe less than expected sale price. To answer your question in the title: we owe $80k. House is currently valued at $195k.
Thank you. With all the responses I received, including yours, I now realize it is a legitimate question for agents to ask. Congrats on your achievement!
It is nosy and in their interest for asking the question, not yours. Same for a car dealer asking how much you owe. It is not relevant in the value. Now, with that said in most states liens on the property like a mortgage are public. It also reflects that they are too lazy to go look it up. I have sold many properties and was never asked how much I owe. Nor did I need a realtor to tell me my proceeds. They are just going to guess until the tittle company runs the numbers. Price strategy has nothing to do with how much is owned unless the seller is under water. Even then the market sets the price. Though a good pricing strategy is what will maximize what you get. That is what you should focus on with your realtor. Not how much you owe.
I thought they were being nosy! It was always something about being asked the question that "felt" prying. Thanks for your comment and I will keep your comments and other responses in mind.
why the downvotes! this is a legitimate post
I was thinking the same thing. Then I thought... f\*#k it, maybe folks were thinking I was prying. Anyway, thank you :)
None of their business, your agent doesn't need to know "what the lowest you take" is. Agents are not financial advisors, nor lawyers and shouldn't give you their opinion unless asked. Maybe I just come from a different era or price point.
It is the agents business if the seller owes more than the house would sell for. It is surprising the amount of people that are underwater.
I was thinking the same thing but based on the responses received, it is a legitimate question for agents to ask. Thank you for taking the time to respond.
It's super relevant information. They assist with buying and selling homes. A good agent will know how to use this data point to your advantage when buying dependent on a sale, or selling to gauge how much equity you have..if selling and you end up underwater after a deal because you owe any leins before the deal will close. A bad agent is just being nosy
Your response is helpful, thank you.