There is a lot of fear circulating in the market today about the potential of a housing recession. Don’t sell your home during a recession without considering these 5 things!
In today’s post, I would like to share with you an article I found entitled “Should You Sell Your Home During a Recession? 5 Crucial Things To Consider. Written by Erica Sweeney, she made 5 separate points that homeowners need to consider before selling their home during a recession.
In her article, Ms. Sweeney outlines the 5 most common considerations that people tend to think when selling. Today, I would like to share with you an analysis of her article, with a local twist!
🔉🔊 Listen to KarlBuysHouses Podcast: “Should You Sell Your Home During A Recession?”
Pricing Your Home During A Recession
Let’s begin by understanding the basics. During a recession, confidence in the economy begins to wane, and because of this, people tend to spend less money. In the beginning of a recession, people do not know they are in one. All the data points used to determine if our economy is in a recession are analyzed as time goes by. Therefore, one of the biggest problems with selling a home during a recession is that you don’t know you are in one until you are already deep in it.
Therefore, it is critically important to watch the local Tucson real estate market values often. It is important for you to know how many homes are currently coming on the market, how many homes are getting contracts, and how many owners in Tucson are getting their money after a successful closing.
Here at KarlBuysHouses, I track this information and compile it into bite sized chunks. You can find this information updated regularly here!
This is important because if you do not know how many other homes are currently for sale, or if they are selling, then you might not price your property correctly. Incorrectly pricing your home is bad enough in a good market. Pricing your home incorrectly during a recession will cost you even more money in lost time, lost opportunity, and in falling home prices.
Timing Your Home Sale During A Recession
One of the hardest things to do when trying to sell your home during a recession is to “time the sale” correctly. If you have never experienced a recession or a period of extreme localized housing difficulty (for example.. if a local base, or major corporation has shut down) then let me attempt to share some of my 23 years of experience as a Realtor, a Real Estate Broker, as well as an Investor here in Tucson.
If you typically have experienced a real estate market that is very forgiving, and easy to work with as we have had for the past 10 years, then it might come as a shock to see that timing things during a recession isn’t as easy, or as forgiving.
What was once a simple closing, or an extension; can quickly make a deal go “sideways” when you are trying to sell your home during a recession. If your home isn’t getting many showings, and you finally get an offer, you might be more inclined to take it.
Be careful not to get overly attached to the sale of any property until the wire has hit your account. The odds of a home sale canceling, or a buyer backing out increase dramatically during a recession. Financing becomes harder to obtain, appraisals become tougher, and repairs are often required.
Be sure to listen to the Podcast of this episode for even more information…
Buying A Home While Selling During A Recession
Obviously.. there are a lot of concerns when selling your home during a recession. However, the problems become magnified exponentially when buying a home while selling a home during a recession!
The problem is multifold. During a recession, the amount you as a Seller make is diminished from the natural contraction of the market. Your inclination is to sell your home by owner, or with the least expensive real estate agent you can find. Your situation is further hampered by volitile mortgage interest rates.
These factors make it a priority to make as much as possible on the sale of your home, especially since the homeowner on the other end of the transaction is facing the very same problems you are. Contingencies can go a long way to ensure that you do not end up with two very bad situations.
- You end up owning TWO homes.. (Bad)
- You end up homeless. (Worse)
How To Price A Home During A Sale
Pricing a home to sell isn’t as easy as one might think. You can go out and get a “projected home sale price” by any number of means today. Between Zillow’s iconic “Zestimate”, your local Realtor, or even a paid appraisal can give you any number of values for your Tucson home.
However, the problem is that the Buyer for your home doesn’t believe Zillow is accurate, and it isn’t a secret that salesmen will tell you a price just to get your listing. So how are you to know what is a good price for your property? Especially when things are rapidly changing in a declining, or even a flattening market during a recession?
The best advice I can give you when you are trying to sell your home during a recession in Tucson is to listen closely to your customers. Your BUYER ultimately determines the price. I recognize that this is a harder piece of information for a first time homeowner to hear! If you have only owned a home during good times… it will be difficult for you to understand, and ultimately accept the truth of this situation.
During a recession, it isn’t uncommon for homeowners to go through a “grieving process” when having to adjust their expectations about price. Everyone initially is in Denial about the loss of perceived equity. It isn’t uncommon for anger to be displayed at the same time. However, there will come a time when bargaining will come. Shortly after that, depression, and finally acceptance about the new reality that you face.
Be sure to listen to the Podcast of this post, as I go into great detail about pricing your home for sale accurately.
Make Your Home Ready For Sale
Finally, it is critically important that you decide for yourself if you need to sell your property at all. If you do not need to sell your home during a recession.. then don’t! You undoubtedly will lose potential money on the transaction! In other words, you will be leaving money on the table!
However, if you need to sell your home during a recession, then you have to take a different approach than you have in years past.
In previous years. One could put their property on the market without much work, without much fuss, and get a full price contract within days. When you are trying to sell your home during a recession, the entire real estate market changes.
PRO TIP: If you HATE having terms dictated to you.. sell before a recession!
Homes take longer to sell. Offers come in lower.. and with more concessions. It isn’t uncommon to find that the homebuyers during a recession are far pickier than the ones during “good times.” Home buyers have high demands of properties, and property owners.
It truly is a “Beauty Contest in a Price War” when there are more homes for sale then there are Buyers to buy them. Only the best homes with the best prices get the best offers!
See Related KarlBuysHouses Post: 10 Top Home Improvements To Make Before Selling Your Home!
Sell Your Unwanted Property Today
If you are trying to sell your home during a recession, it doesn’t have to be difficult! Contact KarlBuysHouses today for a fast, fair, no obligation offer on your unwanted property today! I’ve been helping Tucsonan’s just like you for over 23 years with their difficult properties, and providing realistic solutions that work!
Call or Text me directly at (520) 403-6227 or fill out this form to tell me about your property!
“Nearly 4 million Americans are more than 60 days behind on their mortgage, and countless others are only a paycheck away from missing a mortgage payment. You’re not alone. ” That’s why I’m here, to help home owners like you when you need it most.