Start With the Contract
Do not begin with the amount you received years ago.
"Point gave me $80,000."
Begin with the question your own agreement answers best.
What does the agreement say happens when I sell?
Find:
- Original agreement
- Investment amount
- Agreement date
- Recorded documents
- Current settlement information
- Provider contact information
Why the Date Matters
Commercial home equity investment (HEI) products evolve over time.
A Point agreement signed several years ago may not contain exactly the same provisions as a current product.
Do not rely only on today's marketing website to interpret yesterday's contract.
Determine Current Market Value
Before deciding whether to sell, compare the numbers on your specific property:
- Likely sale price
- Mortgage payoff
- Point settlement
- Other liens
- Selling costs
Example
Expected sale: $700,000.
Mortgage: $275,000.
Point settlement: $135,000.
Other estimated selling costs: $55,000.
Approximate remaining proceeds: $235,000.
Illustration only.
Every property is different. Your actual figures depend on your contract, your loans, and the market.
What if Point's Valuation Differs From the Sale Price?
The agreement may contain specific valuation procedures that govern the provider's settlement.
Do not assume the negotiated purchase price automatically determines every component of the provider's settlement formula.
How Lisa Helps
Lisa can determine what the home is realistically worth in the current market.
Point determines its contractual settlement.
Escrow and title coordinate the closing.
