<p>When a Homeowner has equity, they can request the buyer to provide a cash payment for the difference between the loan amount and the value. Normally this is done with a loan when it is a large amount. Legal documents would be necessary to accomplish this. Traditional selling with an agent will cover this part in their&nbsp; title closing services. FSBO opportunities should use a title closing service to protect the interest of both parties.&nbsp;</p>

<ul>
	<li>Home equity = The difference between the market value and the outstanding balance of all liens on the property.</li>
	<li>True equity = The amount you can capture in cash. This is normally received in a check when you close a loan. It is important to recognize that there is a difference between the two terms.</li>
</ul>

<p>Example- Sellers who have little equity in their property should realize that even though it is called Home Equity, you will not be able to get 100% of it. Only a portion of it is the true cash equity. Home equity is appealing to buyers. True equity is appealing to sellers.</p>