The recent economic situation, combined with the COVID-19 pandemic, has caused many industries to suffer, with the real estate industry taking a hard hit. If you’re thinking of selling your home, you may be wondering how to do so in an economic recession. In this blog post, we’ll give you some tips on how to sell your home during tough economic times.
The current economic recession has also caused many people to reconsider their plans to buy or sell a home. If you’re thinking of selling your home, you may be wondering how to do so in an economic recession. In this blog post, we’ll give you some tips on how to sell your home during tough economic times.
It’s important to remember that even in an economic recession, there are still people looking to buy homes. While it may take longer to find a buyer, there are still plenty of people out there looking for their perfect home. Here are some tips to help you sell your home during an economic recession:
Price your home competitively
In a buyers’ market, it’s important to make sure your home is priced competitively. This means doing your research to find out what similar homes in your area are selling for and making sure your asking price is in line with those prices. You may also want to consider an on-site house valuation to ensure you are getting the best market value for your property.
Be prepared to negotiate
In a buyers’ market, buyers will likely be looking for a deal. Be prepared to negotiate on price, repairs, closing costs, and other terms of the sale.
Be flexible on timing
Selling a home can take longer than usual in an economic recession. Be prepared for a long journey and be flexible on timing. You may need to be open to negotiating a lease-back agreement or other terms that might make the sale more attractive to buyers.
House Preparation tips for selling your home during a housing recession
Whether it’s a choice you make because of your own personal circumstance, or something that was thrust upon you following a death in the family or inheriting a property, it’s important to have a plan. While you’re not going to be able to prepare for every situation, you can prepare yourself for the most common ones.
The following tips are to help you prepare your home to sell during an economic recession.
Don’t waste money on expensive upgrades
Of course, it is essential to have your home in tip-top shape if you want to sell during a housing recession. This means making any necessary repairs, giving the home a fresh coat of paint, and decluttering the space to make it more appealing to potential buyers.
You may also think you need to make a lot of costly improvements to sell your house. Your kitchen might need updating, or your bathroom may need remodelling. As a matter of fact, there is no single renovation that will add more value to your home than the cost of the renovation itself, so it is wise to stick to the smaller projects that won’t cost too much.
Understand the potential risks of the sale
There are a number of factors that need to come together for a home purchase or sale to be successful. You can end up back where you started if the deal runs into one or more snags along the way. Some potential reasons could include the super boost in interest rates for mortgages which means the monthly repayments are too high for people to afford. Sudden job losses and rises in energy prices mean people have less income to put towards other luxuries. Mortgages will be harder to qualify for as the cost of living increases, especially for first-time buyers.
An estate agent who represents the buyer should not accept a mere “agreement in principle” from their broker but should actually get to know the buyer’s financial lifestyle and verify their findings with the mortgage broker. Why? Because sometimes, an AIP can include unrealistic assumptions about the buyer’s ability to service higher mortgage payments.
There is no doubt that most mortgage buyers will not encounter any issues. However, it is still possible for things to go wrong occasionally. So it’s always important to find a good estate agent that has your back.
Start decluttering
It is commonly said by estate agents to their clients that clutter-free homes sell faster. The more furniture and items you have in your home that you do not need, the harder it will be for buyers to see the potential of your home. It’s best to start getting rid of things you no longer need, or you can put them into storage during the viewing and selling process.
Having a house free of clutter not only makes it appear cleaner but also makes it seem larger. This enables potential buyers to get an idea of what is possible in a given room by seeing how their own furniture will fit in.
Be realistic about the asking price
It’s also important to be realistic about your asking price. In a buyers’ market, you will need to be competitive with your pricing. This means doing your research to find out what similar homes in your area are selling for and making sure your asking price is in line with those prices.
Selling your home during an economic recession can be a challenge, but it’s not impossible. By following these tips, you can give yourself the best chance of success. To learn more about the things you need to consider before putting your home on the market, check out our previous post on selling your home before a recession.
