Comparing Selling Property Outright vs. HELOCs vs. Equity Sharing Agreements

Selling Your Home Outright vs. Getting a HELOC vs. Equity Sharing Agreement: What to Consider

When it comes time to sell your home, you have a few different options available to you. You can sell your home outright, get a home equity line of credit (HELOC), or enter into an equity sharing agreement. Each option has its own set of pros and cons, so it's important to weigh your options carefully before making a decision.

Outright Sale

If you sell your home outright, you'll receive the full proceeds from the sale. You can then use that money to buy a new home, invest in another property, or simply pocket the cash. The downside to selling your home outright is that you won't have any equity in your new home; you'll be starting from scratch.


A HELOC allows you to borrow against the equity in your home. This can be a great option if you need to make some repairs or upgrades to your new home. The downside to a HELOC is that you'll be required to make monthly payments, and if you fall behind on those payments, you could lose your home.

Equity Sharing Agreement

An equity sharing agreement allows you to sell a portion of your home's equity to an investor in exchange for a lump sum of cash. This can be a great way to get the cash you need without having to make monthly payments. However, it's important to remember that you'll be giving up a portion of your equity, so you'll need to be comfortable with that before entering into an agreement.

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