Recession! It is a terrifying word when you are considering your future financial situation. Is a recession coming to the US in the next few months, or is it already here? How will Georgia be impacted if there is a recession and what does it mean for you to sell a house during a recession? The Center Square reported that “Shrinking GDP could hurt Georgia economy as recession fears rise. Want to know more about what a recession is and how can it affect selling your house in Georgia? You can read more about that here.
If you are considering selling your home and have flexibility on when you want to move, here is some advice on what you can expect when selling a property during a recession.
During Recessions, Home Prices Are Lower
Recessions are great for buyers, but bad news for sellers. During a recession, home values frequently come to a standstill or even decline. The state of the economy may also alter the real estate industry as fewer individuals may be able to afford to buy a home at all. The buyers who are eligible and ready to take immediate action on a sale are slim due to the fact that many individuals are limiting their budgets and are not wanting to spend a lot of money on a home.
However, don’t lose hope. There are many things you can do to increase the appeal of your house during a recession, but the most important fact is that, if possible, a recession is not a good time to sell. Though, If you must sell, sell quickly.
Timing Is Crucial
When is the ideal time to sell a house? This is where things become a little tricky because the perfect moment to sell a house is often just before a recession. Home values tend to reach their peak just before a recession begins, and decrease during a recession, so it makes sense to sell when the market is high and then buy low if possible.
Of course, it’s difficult to predict with accuracy when home prices will begin to shift more in favor of a buyer’s market than a seller’s market; if it were possible to predict then everyone would be investing wildly in real estate. That being said, if you want to sell your home before a recession, keep in mind that it can be a risky game with no guarantee of success.
Homes That Are Older, In Poor Condition, Or In Less Desirable Areas Will Lose Value Faster
Of course, every seller believes that their home is nearly perfect and probably the best in the neighborhood, but if you’re honest with yourself, you know that there are certainly both nicer homes and some homes that are not so nice as yours. However, do you know what potential buyers in your specific area are looking for?
Properties that buyers do not want are going to lose value more than homes that buyers do desire. Though this may seem obvious, this may indicate that buyers are focused on specific square footage or type of home in their searches. It could also indicate a certain number of bedrooms or bathrooms in your area that are in demand.
Before Listing, Make Any Improvements You Can
Many sellers think that by selling before a recession, they may be able to avoid staging their home for a buyer, however, the opposite is actually true. A lot of buyers don’t have time to complete a list of renovations during a recession because of a potentially very short time frame.
However, there are some buyers that before they list their home, hire an inspector so that they are aware of any potential problems and can address them before any buyers come through. This can be a very wise move for sellers to show their seriousness and eagerness. This tactic will draw in qualified and prepared to submit bids on your home. The best option then is to sell quickly before a recession begins and not take time to repair or clean up your home. Professional home buyers can be
Before a recession, this can be a very wise tactic for sellers to demonstrate their seriousness and motivation, which will in turn draw the most qualified buyers to submit bids on your gorgeous home. Your best option is to sell quickly before a recession hits, not taking the time to repair or clean up the home. Professional home buyers can be crucial during this time.
Price Reasonably And Don’t Assume You’ll Get Top Dollar
If a recession is approaching, time is of the essence. For that reason, you really don’t have time to test the market with delusional pricing that you hope would appeal to some desperate purchasers. In the worst-case scenario, the recession may begin as you are negotiating with a buyer who at first, offered a price you were willing to accept. The buyer who would have happily purchased your home a few weeks ago at your desired price, may suddenly find themselves in a buyer’s market and may not complete the deal and tell you to seek another buyer.
So, what is a fair price? If you’re not sure, ask a real estate agent what they feel your home might sell for in the current market, then make any necessary adjustments.
Recessions are recurring, so if you miss this one, there will be another one in a few years. It’s wise to be cautious and not try to sell too close to the peak of a recession. Sellers that have the freedom to plan when to sell their house according to the economy are in the perfect spot to profit from the ups and downs of home values. If you need to sell quickly, learn more about the options on our website to sell As-Is for cash.
Consider The Option Of Selling To A Professional Home Buyer Like Southeast Home Buyers
We have current knowledge of the housing market in Georgia and can help you think through the options. Give us a call at 866-987-0072, and we’ll be happy to help you out. You can read more about how we operate here.
If you make the decision to sell quickly and avoid falling prices in a recession, we make reasonable all-cash offers for homes in the Atlanta region and would be happy to evaluate your circumstances and make you an offer. Whether you need to sell due to a pending foreclosure, relocation, or even terrible conditions like termite damage, call us at 866-987-0072 or fill out our form with your information.