What is a pay-at-close loan?

Why pay-at-close for pre-sale home improvements?

How do you plan for the unplanned? Selling a home often takes more work and money than homeowners realize: 1 in 6 said they didn't understand the selling process and over 1 in 3 didn't budget for the costs it took to sell their home.

Before your home hits the market, there may be repairs to make, paint to touch up, landscaping to tidy up, or staging to help buyers visualize their next potential home. Then you might think you're closing in on a buyer, but the inspection surprises you with a non-negotiable repair before selling.

In today’s market, the condition you sell your home matters more than ever: "move-in ready" ranks as the #1 priority among buyers, and homes that "need work" can sell for 8% less than expected.

Between cleaning, moving, open houses, buyer negotiations, a mountain of paperwork and maybe buying a home all at the same time, selling a home can be one of the most stressful life experiences. Homeowners may not want to move investments around, put more purchases on credit cards with monthly payments, or dip into savings just to get their home listed. For some, HELOCs aren't ideal either since it means a secured loan that places a lien on your home (read: HELOCs, savings or pay-at-close: which one is best?).

That’s where a pay-at-close loan can help. You can borrow the funds you need to get your home market-ready, and repay what you used out of the home sale – no upfront costs to finish your home prep*.

What is Notable?

Notable is a pay-at-close loan designed specifically for homeowners preparing to sell their home.

Instead of paying upfront for home prep expenses, eligible sellers can quickly access flexible funds to get their home market-ready now, and repay what they used when the home closes (up to $50K)*.

That means homeowners can make the improvements they need to list and sell competitively without taking on upfront, out-of-pocket costs or monthly payments.

Why homeowners use pay-at-close funds

Every seller’s situation is different, but many homeowners use pay-at-close funds for one or multiple of these reasons:

1. Quick cosmetic updates that can help list and sell more competitively

Sometimes a home just needs a few finishing touches to list more competitively and get noticed by buyers.

Fresh paint, landscaping, decluttering, cleaning, or staging can dramatically improve how buyers perceive a home online and in person.

These updates help create the “move-in ready” feeling buyers are looking for and can help listings stand out in a competitive market.

2. Must-do repairs that can block the sale

Other homes need some fixing or repairs before they’re ready to list. This could be plumbing, electrical, roofing, HVAC, or inspection-related repairs that can be a dealbreaker for prospective buyers.

The costs of these projects can range greatly and cause headaches for homeowners who weren't expecting to spend so much on repairs (an air conditioner replacement can cost as much as $28,000).

Pay-at-close funds can help sellers move forward with the repairs they need to get their home listed with more ease, and have a plan for the unplanned in the case of unwelcome inspection surprises.

3. Strategically maximizing the value of the sale

Some homeowners simply want to invest in the best possible sale of their asset: their home.

Rather than selling “as-is,” they might make strategic upgrades to their kitchen, bathrooms, lighting, or the front and backyard on top of needed repairs to help achieve the best possible sale.

Many homeowners use Notable because of the hassle, and sometimes tax implications, of moving money around: a pay-at-close loan is just an easier and more convenient choice.

4. Reducing stress for inherited homes or family sales

Pay-at-close financing can also help family members managing inherited properties, trusts, or estate sales.

Multiple heirs or family members may need to agree on contributing funds to fix up the home before selling, which can create delays or friction during an already emotional process. A pay-at-close loan can help alleviate conversations about funding prep out of pocket, and who should contribute what––simplifying and streamlining getting the home listed.

How a pay-at-close loan works

The process is easy, and takes a home seller just a few minutes.

Step 1: Apply online

Homeowners complete a quick online application that can be done from any device in just minutes.

• Applying uses a soft credit pull, so it does not impact credit scores.

• Homeowners can access up to $50,000 to fund home-selling expenses.

• There are no vendor restrictions, meaning homeowners can work with their preferred contractors, stagers, painters, movers, or agents.

Step 2: Use funds to get market-ready

Funds can be used for nearly every expense related to preparing or selling the home, including:

• Staging

• Painting

• Flooring

• Landscaping

• Repairs

• Kitchen or bathroom updates

• Cleaning and decluttering

• Moving expenses

• Temporary housing during showings

• Inspection-related repairs

• Temporary housing

• And much more

Read: The surprising home-selling expenses Notable can cover

Step 3: Repay at closing

There are no monthly payments while the home is on the market.

Instead, the balance (funds used, interest, and fees) is repaid when you sell your home.*

For many sellers, this creates an easier home prep experience because they can do the work necessary to maximize their home sale with less stress, like:

• Disrupting their cash flow

• Paying monthly credit card fees

• Impacting their credit through a hard credit check

• Taking out a secured loan that puts a lien on their home (like a HELOC)

Why more sellers are using pay-at-close with Notable

Most of today's buyers expect homes to feel turnkey and move-in ready, so pre-listing prep more important than ever.

But the reality is that selling a home costs money before it makes money, but the investment in your home is worth it:

Based on Notable data across 40,000+ homes prepped and $1B credit issued, homes that take advantage of the program sell 31% faster, for 9% more, with an average 4x return on home prep investment, on average.**

Pay-at-close financing gives homeowners access to the funds they need for the potential to put their best foot forward when selling their home.

How do I get started?

You can estimate what you qualify for before applying by going here.

*Interest and fees apply. Loan funds, interest and fees are due upon loan acceleration, twelve months after origination, client’s termination of the listing agreement, or the date on which Notable otherwise suspends the loan for any reasons stated in the loan agreement, whichever occurs sooner. Subject to the terms and conditions of the loan agreement.

**Based on Notable data. Individual results are not guaranteed nor warranted.