Selling your home during regular economic times can be difficult. But when there’s a potential recession looming, that can make the process even trickier. Recessions are known to wreak havoc on the real estate market with fluctuating home values, mortgage rates, and other factors. Selling a home ahead of a recession comes with its advantages and disadvantages. Start a search online to find out what this means for prospective sellers.
If you’re thinking of selling your home, there are some things to consider first. It’s important to weigh your options and search online to learn more before selling.
Here’s what you should know about selling your home before a recession.
Reasons to Sell
You’re Expecting a Lot of Interested Buyers
One of the worries that naturally come with selling your home is if buyers will be interested. Depending on your area, it could be a competitive market where your home is one of many options available to buyers.
The good news is if you live in a good area and have a home in good condition, qualified buyers will want to submit an offer.
Home Prices Could Be at a Peak Before Recession
According to Wilcox Real Estate Group, home values are usually at its peak before a recession hits. This could be beneficial for two reasons. First, you’re managing to sell your home at a high value before the price inevitably drops during the recession. Second, you will likely be able to buy a home at a lower price once the recession hits.
Remember that markets can be unpredictable and this is one potential scenario. The best advice to try and follow is to sell high and buy low.
It Might Be Best for Your Personal Life
Not everyone has the luxury of choosing when they can sell their home. Some people deal with life altering situations that require them to move, even during more unstable times like a recession. Whether it be a divorce, new job, or other circumstances, moving may be necessary.
Disadvantages of Selling
Your Home Could Sell for Less Money
While home prices can peak ahead of recessions, the market can be unpredictable. There’s a reason why people say that recessions make for a buyer’s market. Home prices can fall drastically. This is great for people looking to buy, but not-so great for people wanting to sell and get the most back on their investment.
Unless you’re living somewhere with a hot real estate market and bidding wars, think about what you could actually get from a sale.
You’re Locked Into a Good Interest Rate
For those currently paying a comfortable mortgage rate, experts at Home Light say it might be best to stay put for now. Selling puts you at risk of losing that rate and locking you into a less favorable one when buying a new house.
This can be one of the deciding factors for people unsure whether it’s time or necessary to make a move.
Outdated Homes Are Less Appealing
The condition of your home plays a big role in its overall ability to sell. If yours is outdated, it might be less likely to sell at your desired rate compared to other homes in your neighbourhood that are newer or have been recently renovated.
Consider how desirable your home is and see if there are ways to improve it before putting it on sale.
Tips for Selling Your Home
Make Some Home Improvements
While investing more money into your home can be risky, it can ultimately help raise the value of your home. A property with upgrades or nice amenities will be more intriguing for buyers, which can improve your chances of making a good sale.
Even a fresh coat of paint can make a property seem more appealing and less like a fixer upper.
Be Realistic on the Selling Price
It can be easy for homebuyers to overestimate the value of their home. Realtor.com recommends pricing the home properly instead of guessing. You can use a home value estimator to get a ballpark idea, then consult with a real estate agent. The agent can point you towards a price that makes the most sense.
Don’t Forget Curb Appeal
Although the inside of a home is the real selling point, don’t underestimate the value of curb appeal. People could make up their minds about a property simply by looking at the front door. In fact, the majority of real-estate agents say that curb appeal adds major value to a seller’s property.
Prevent losing potential buyers and give your home’s exterior a facelift.
Search Online to Learn More About Selling Your Home
There’s a lot to consider before selling your home. Recessions can bring an unpredictable market, which makes it tough for the average homeowner to navigate. Conversely, there are some advantages that could ultimately benefit you as a seller.
If you are thinking of selling your home, do your research on the real estate market. Search online for what homes are going for in your area and see how much your home is currently worth. Find a realtor you trust and you could be one step closer to successfully selling your home, no matter what’s happening economically.