Housing prices have soared as a hot housing market continued to rise over the past two years. However, the rise in double-digit home prices and fierce bidding wars may be a thing of the past. With the market slowing down, many are pointing toward an economic recession. This isn’t surprising considering most recessions are precipitate by a housing downturn. Whether we will slip into a full-blown recession remains to be seen, but for homeowners who are looking to sell their homes in the near future, it doesn’t hurt to be prepared for the possibility of selling during an economic recession. Here are several mistakes to avoid when selling your home during a recession.
Don’t Overprice Your Home
Over the past couple of years, sellers have gotten away with listing their homes at high prices and selling quickly despite the obviously inflate price. This was due mostly to extremely low-interest rates, high demand, and very low inventory. But overpricing when buyers are worried about inflation and possible economic downturn will not work. Overpricing leads to future price reductions, which can stall your home sale and put a big red flag on your property listing. Opt for an average price range that is neither excessively high nor low in order to appeal to as many buyers as possible.
Make Your House Move-in Ready
With the possibility of a lower sales price and a longer time on the market, your home needs to be attractive to a very large group of buyers. And, it needs to be a good investment for those possible buyers. This means, preparing your home and listing it as move-in ready is very important since money-conscious individuals rarely want to purchase a home and then spend additional money fixing basic home systems. If you had a pre-inspection done you should have a list of items that need to be fix for the home to be ready to sell at a top-notch price. Common renovations that you may need to focus on are a new roof, a new HVAC system, an upgraded thermostat, and Energy-Star-certified windows. Make these your priority as they will be your best bet for a quick full-price sale.
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Don’t Go Crazy On Unnecessary Upgrades
Everyone loves brand-new cabinets, high-end luxury bathroom fixtures, and brand-new hardwood floors. But in a recession, these types of items might not end with a great return on investment. Stick with cost-effect updates like a fresh coat of neutral paint on your walls or upgraded curb appeal. Both are cost-effective but have shown to add to your home’s marketability and its final sales price. You can also update cabinet hardware, install new stainless steel appliances, or change out old light fixtures and bathroom faucets. Look for the most popular finishes and then search for items with a middle-of-the-road cost.
Don’t Go It Alone
Selling a home is difficult even when the housing market is at its peak. For this reason, sellers should consult a top real estate agent before listing their homes. A real estate agent will help prepare your home to sell, get professional photos taken, list your home, market your home, walk buyers through your home during showings, and of course, assist in paperwork and the final sales process. Search for a top real estate agent with a proven track record. Not only can a top real estate agent take away the burdens of a home sale, the top 5% of agents nationwide generally sell homes for as much as 10% more than the average agent.
Selling during a recession doesn’t need to be complicated or a long process. Take the time to find a real estate agent who can assist you with preparation as well as give you vital insight into the current housing market. With the right agent, a bit of extra work, and a little patience you can sell your home even during a recession.