Is there a way to determine equity in a home before hand?

Question

I have a serious question that nobody around can answer, I've asked so many but nobody knows: question is:

"How can I know how much equity is in a home, without asking a motivated seller?" Is this possible to do?

Victor Segura · Answer

@Christopher Phillips ok sounds good thank you! I'm still new to the game, but got plenty of knowledge. I'm just on the tracks of taking action now, finding my cash buyers then searching for deals that fit their criteria.

Christopher Phillips · Answer

@Victor Segura

Equity isn't really relative (one caveat later)

You make an offer based on your analysis and what you think the house is worth and protecting your profits.

The caveat: if the mortgage is underwater (more than the house is worth) then it will have to be a shortsale. Most lenders will want the house to be listed with the agent and put on the MLS in that scenario. Also, the owner has to qualify for the shortsale. So, if the house is worth less than the property, you just have to walk away from the deal.

You make an offer, they can't or won't take it, no big deal. You move on.

Victor Segura · Answer

@Christopher Phillips ok thank you, so if I'm trying to make a wholesale offer, and I realize that there is not enough equity in the home, is it bad to just deny making an offer? I don't want to have a negative review because I couldn't make a deal happen, due to the amount they owe.

Christopher Phillips · Answer

@Victor Segura

No. The only person that would know how much is owed on a property is the owner. They would either look at bank statements (paper or online) or call their lender/servicer for a payoff amount.

Title searches can only tell you what they borrowed, but they can't tell what they actually paid down. And there are some liens that don't show up right away as well.