Selling Property Outright vs. Getting a Reverse Mortgage vs. Equity Sharing Agreement: Considerations to Keep in Mind
When it comes time to sell your home, you may be wondering what the best option is for you. Should you sell property outright, get a reverse mortgage, or enter into an equity sharing agreement? There are pros and cons to each option, and it's important to weigh your options carefully before making a decision. Here are some things to consider when selling property outright vs. getting a reverse mortgage vs. equity sharing agreement.
Selling Property Outright
If you sell your property outright, you will receive all of the proceeds from the sale. This can be a good option if you need the money right away and don't want to worry about making monthly payments or dealing with the hassle of a mortgage. However, you will likely get less money for your property than if you were to get a reverse mortgage or enter into an equity sharing agreement.
Getting a Reverse Mortgage
A reverse mortgage can be a good option if you want to stay in your home but need some extra cash. With a reverse mortgage, you can borrow against the equity in your home and receive monthly payments. The downside is that you will owe the money back when you sell your home or die, and your heirs will not receive anything from the sale of the property.
Equity Sharing Agreement
An equity sharing agreement can be a good option if you want to stay in your home but need help with the monthly payments. In an equity sharing agreement, you will sell a portion of your home to an investor and then make monthly payments to the investor. The investor will also receive a portion of the proceeds when you sell your home. This can be a good option if you don't have enough equity in your home to qualify for a reverse mortgage or if you're not sure how long you'll stay in your home.