Home Owners Reality!!

Just as an FYI!  I was discussing with an agent in my office today about home owners who have in the recent past took out a loan or equity loan on their home.  This loan shows up as the amount owed on the home in the court house records.  But this additional amount does not qualify to be used in the sell of your home unless you actually used it to add to the home itself such as floors, additions, remodeling, etc.  This should not be loans used on furniture, credit card debt, etc.  We as REALTORS will do comps according to the market value in your area and what homes are selling for .  When this additional amount is added on by a homeowner then it usually puts the home over the market value for the area in which it is located.  The homeowner needs to realize that other buyers do not want to pay for your personal loans nor do they want to pay too much for your home when they can go down the street and buy a home that is correctly priced.  So think long and hard if you are thinking about putting your home on the market and you are trying to add additional loan money to the price of your home , it will not work.  In this market you need good equity in your home to make money or to break even, otherwise you will bring money to the table ( which should be your personal loans) in order to close.  This may be brutle ,but it is the truth!