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Mary, Other/Just Looking in Anaheim Hlls, Anaheim,...

In a listing for a house, I see it described as an equity sale. What does this term mean?

Asked by Mary, Anaheim Hlls, Anaheim, CA Sun Jul 19, 2009

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6
Aaron Zapata’s answer
Sales Price - Loan Amount = Positive or Negative Equity.
Positive Equity = Equity or Traditional Sale
Negative Equity = Short Sale

Realtors started using the term Equity Sale late last year to distinguish the sale from Short Sales and REOs.

These are the best kind of sales because you have a real human seller and don't have to get a bank approval.

Some buyers are willing to pay more for Equity Sales (not a lot more, but a little more) because the sale will typically be faster and normal because the sellers are humans and not institutions.

Good luck.
1 vote Thank Flag Link Sun Jul 19, 2009
Hi Mary,

Believe it or not.....we have to identify "normal" sales. Equity sale simply means that a normal person is selling their home in a normal sale...not a bank-owned and not a short sale. These are the best kinds of sales, they can close quickly, make repairs and negotiate on the price.

Karen
1 vote Thank Flag Link Sun Jul 19, 2009
Lot of sales right now are bank owned homes or homes with their loan amounts more that thier home values at sale, also called short sales. There are also homes the seller sells and actually puts money into escrow, so they can pay off all the bills and debts.

Equity sales are 'regular' sales, where the sellers will have enough money to close escrow even at the lowered sales price from peaks. These are easy escrows to close. Short sales may take a while some short sales may not even materialize.

Please contact me for more info if needed.
Mike Patel
Web Reference: http://www.mikepatel.com
0 votes Thank Flag Link Mon Jul 20, 2009
In today's market, you have found a "treasure!" A home with equity, which means you and your agent can deal directly with the buyer and their agent, submit an offer, hopefully negotiate a deal, and open escrow!!! No waiting for a bank to respond after a l...o...n...g wait such as short-sales (which can take many months) or a foreclosed/REO property (which can still take some time). It's not an auction, it doesn't not need court approval -- a gem and unfortunately a unique situation this market. I have "sold" four recently and "bought" two, and it was a real pleasure and joy to be able to get an answer right away for my clients. Please feel free to call if you need any help presenting a great offer that will hopefully be accepted. I'm here and ready to help. Bonnie Scribner, Century 21 Discovery, Bonnie@BonnieTheRealtor.com 714.296.0513
0 votes Thank Flag Link Sun Jul 19, 2009
Hi Mary,
An equity sale means the seller of the home has equity in the property. He or she does not owe more than the home is worth, they owe less. Enough to sell the home and pay their own closing costs of sale. I believe agents put this in so they will distinguish them from short sales where the seller need the banks approval to sell. No bank approval is required in this type of sale.
Connie Bramble
714-337-8718
0 votes Thank Flag Link Sun Jul 19, 2009
That is an unusual term on a listing. My assumtion would be that the sellers have equity in the property...and that it is "a normal sale". Not a short sale or an REO....but you may want to have your agent confirm it for you..or contact the listing agent.
Good luck!!
Web Reference: http://www.tntdavis.com
0 votes Thank Flag Link Sun Jul 19, 2009
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