It is no secret that the economy has been in crisis for quite some time. It can seem unfair too that bailouts are offered to large corporations while individuals sit around struggling to pay their bills. There are many scenarios unfolding in society that can lead to the need to sell your home. However, you may not be able to get out of it what it is worth. You definitely need to do your best to get out of it what you owe on it.

More homeowners are selling at a loss these days. While they don’t want to, many of them feel they don’t have a choice. Their home may have been on the market for a very long time without anyone making an offer close to what they want for it. The time then comes when they feel they should take what is in front of them or risk sitting for months again worrying about the need to sell it.

Many people are selling homes that they have paid off in full at a loss. They may have lost their job so they need to relocate for work. In those cases any funds they can get for moving expenses and to put down on a new home somewhere else is going to be useful. Others have to sell their home because if not they will lose it. They have invested in it over the years but will only sell it for enough to get out from under it. That is better in their mind then having it foreclosed on and their credit scarred.

If you are working with a real estate agent, make sure you talk to them at length about selling your home for a loss. You should know upfront if that is something you are willing to do. It may not be at first, but could be something you have to consider six months later when no one has purchased it. Being flexible is important but also getting out from any remaining debt is.

Make sure you talk to the lender too if you still owe month on the house. Find out what your payoff is going to be. It may be less than what you thought so you won’t be taking a loss if you go with a lower offer. It may be more though and you don’t want unexpected expenses you have to cover when you sell your home. There can be prepayment penalties as well with some types of loans so make sure you know exactly what will happen with your loan when you sell.

If you are working with a real estate agency, don’t forget their commission. You may be selling your home for what you owe, but if they are going to be earning $3,000 on the sell you will be obligated to come up with that money. Know the fees you are facing before you get involved with any real estate company.

Make sure you check out the tax laws as well. Should you take a loss on your home when you sell it you may be able to at least get a break on your taxes. This is a common issue of tax filing that many people fail to consider. If you do your own taxes there is plenty of information online to help you. Many of the programs will ask you if you sold a home and once you check the yes box it will walk you through the remaining steps.

If you have someone else prepare your taxes for you, make sure you ask them about it too. Such professionals will stay on top of these laws and the guidelines for such tax breaks. Do all you can though to get a fair price for your home so that you don’t have to sell it for a loss.