As this coronavirus problem mounts, we are sitting back and watching our economy suffer excruciating lows. Financial professionals are telling us to gear up for even bigger losses than the ones that we experienced in 2008 with the housing market crash. There are likely many homeowners that have been making plans to sell their homes and are now wondering if they should go through with it as we are facing another recession. JMark Inspections is here to talk about some considerations you may want to make before you make the move to sell your home.
What Happens to House Prices in a Recession?
It is only natural that during a recession you aren’t going to get the high price for your home that you would when the economy is booming. If the market is softer like it is during a recession, there isn’t going to be the same demand for homes and you will probably get a lower price when you put yours on the market. It is important to take into consideration the timing of it all though. If you don’t need to sell, you may want to sit on it for a while instead of moving forward. There will be some homeowners that don’t have much of a choice though due to circumstances out of their control like a job relocation or family circumstances. In this case, you may need to just move forward and move on rather than trying to time the economy just right.
Buying & Selling a Home at the Same Time Makes a Difference
Many times, when homeowners decide to sell their home only to turn around and buy a new one, the loss in the price you get for your home will be evened out by the low price you get for the new one. If you are in a situation where you are finding that you don’t have much of a choice as to whether or not you can sell or wait, putting the money from the sale of your home into another real estate investment will be the wisest choice.
Pricing Your Home During a Recession
It can be difficult to price your home during a recession. For many homeowners, it can seem painful to put your home on the market at a low price. Putting your home on the market at an inflated price won’t do you any favors though. You will find that it will only sit there and you won’t likely get any buyers. Use a home value estimator or a real estate agent to help you put the home on the market for a price that is as close to its value as possible and you will more than likely be able to sell it.