If you're looking to sell my house VIC but still owe a mortgage on the property, you're not alone. Many homeowners find themselves in this situation, and it’s important to understand the steps involved in selling your property while still having an outstanding mortgage balance. Whether you're relocating, downsizing, or facing financial difficulties, selling your home with a mortgage can seem like a daunting task. However, with the right strategy and support, it can be a smooth and manageable process.

At Sale by Home Owner Australia, we understand that selling a home with a mortgage requires careful planning and decision-making. In this article, we’ll walk you through the key steps to take when selling your home while still owing on your mortgage.

1. Determine the Amount Remaining on Your Mortgage

The first step is to find out exactly how much you still owe on your mortgage. Contact your lender to get a payoff statement, which will include the remaining balance on your loan, including any fees, interest, or penalties that may apply. It’s important to have this information upfront so you can assess whether the sale of your home will cover the full amount owed.

At Sale by Home Owner Australia, we recommend taking the time to get a clear understanding of your mortgage balance before moving forward with your sale. This will allow you to make informed decisions about pricing your home and planning for the next steps.

2. Assess Your Home’s Market Value

To successfully sell your home, it’s essential to know how much your property is worth in the current market. Use online valuation tools, consult with a real estate agent, or hire a property appraiser to get an accurate idea of your home’s market value. Keep in mind that the sale price needs to be enough to cover the mortgage balance and any associated selling costs, such as agent commissions, legal fees, and closing costs.

If the estimated sale price is close to or exceeds the amount owed on the mortgage, you may be able to move forward with the sale. However, if your home is worth less than the remaining mortgage balance (a situation known as being "underwater" or "in negative equity"), you may need to explore other options.

At Sale by Home Owner Australia, we can help you navigate the process by providing insights into current market trends and helping you determine a realistic asking price.

3. Consult with Your Lender

Once you have an idea of the value of your home and the amount you owe on your mortgage, it's a good idea to speak with your lender. If your home’s market value is equal to or greater than the mortgage balance, you should be able to sell your house without any issues. However, if you owe more than your home is worth, your lender may need to approve the sale.

In cases of negative equity, your lender may be willing to negotiate a "short sale," where they agree to accept less than the full mortgage balance in order to facilitate the sale. A short sale can be a good option if you’re struggling to make mortgage payments and want to avoid foreclosure. However, short sales can be complex and may take longer to process, so it’s important to work closely with your lender throughout the process.

At Sale by Home Owner Australia, we can assist you in negotiating with lenders and guiding you through the sale, ensuring that your interests are represented.

4. Understand Your Selling Costs

Selling a home comes with a variety of costs that can impact the amount of profit you walk away with. These costs can include:

• Agent fees: If you're working with a real estate agent, you’ll likely need to pay a commission, which is typically a percentage of the sale price.
• Legal and administrative fees: You may need to cover the costs of legal services, documentation, and other administrative tasks involved in the sale.
• Repairs and renovations: Depending on the condition of your home, you may need to invest in repairs or minor renovations to make it more attractive to buyers.
• Mortgage discharge fees: Your lender may charge a fee to discharge the mortgage once the loan has been paid off.

These selling costs should be factored into your overall plan when determining whether the sale will cover the mortgage balance. At Sale by Home Owner Australia, we provide a straightforward process that helps you manage these costs effectively.

5. Set a Realistic Asking Price

To ensure you cover the remaining mortgage balance and achieve a successful sale, it's important to set a realistic asking price for your home. Overpricing can lead to your property sitting on the market for an extended period, which may ultimately reduce its value. On the other hand, underpricing could result in a sale that doesn’t provide enough funds to cover your mortgage balance and expenses.

A competitive price is key to attracting buyers while ensuring that you walk away with enough money to cover your mortgage and other costs. Working with professionals like Sale by Home Owner Australia can help you determine an appropriate asking price based on market trends, comparable sales, and your mortgage balance.

6. Consider Selling Privately

If you want to avoid the fees and complexities associated with traditional real estate agents, you can also consider selling your home privately. Sale by Home Owner Australia offers a private sale platform that allows you to list your property, manage the sale process, and interact directly with potential buyers. By selling privately, you can save on agent commissions and have more control over the sale, which may help you cover your mortgage and other expenses more easily.

7. Plan for Your Next Steps

Once the sale is complete, your mortgage will be paid off, and you can move on to your next chapter. Whether you’re buying a new home, renting, or relocating, it’s important to plan your next steps carefully. If your home has been sold for more than the mortgage balance, you may have some leftover funds to put towards your next purchase. If not, you may need to explore other financial options.

Conclusion

Selling a home with an outstanding mortgage in VIC can be a straightforward process if you approach it with the right knowledge and planning. By determining your mortgage balance, assessing your home’s market value, and consulting with professionals, you can navigate the sale and ensure that you cover your mortgage and selling costs. At Sale by Home Owner Australia, we are here to guide you every step of the way, whether you’re selling privately or working with a real estate agent. Don’t let your mortgage hold you back—start planning your sale today and take control of your financial future.