Selling Your House During a Recession? 3 Tips to Close the Deal
The housing market is in a slump, and there are no signs of its improvement in the near future. However, that doesn’t mean you should give up on selling your house. According to recent research by Deloitte, the housing sector is witnessing a decline, with new residential construction decreasing from 1.7 million in the first quarter of 2022 to 1.5 million in the third quarter. That’s an 11.7% decrease. This figure implies that there are fewer buyers today than there were previously.
Hence, it’s more important than ever for sellers to consider various factors before putting their house on the market during this period of low consumer confidence.
Offer a Competitive Price
After the COVID-led economic decline, it is no surprise that consumers are more cautious about home buying. However, this does not indicate that the market is dead. As a seller, you need to be ready for a competitive market and make sure your house is priced competitively. In the wake of the COVID-led economic downturn, the US housing sector witnessed high instability in terms of price and consumer sentiments. Research by the National Bureau of Economic Research revealed that US house prices increased by 23.8% from December 2019 to November 2021. This figure shows how volatile the market has been due to its sensitivity to economic performance and consumer confidence levels during that period.
Buyers are going to be hesitant to make an offer on your property if they think it’s overpriced, and they won’t want to pay more than the market value. To avoid this situation, you should do some research on what other houses in your area have been listed or sold recently. If you want to ensure that you’re getting the best possible price for your house, consider lowering the asking price by 10% or 20%. This may not seem like a lot of money, but it will make all the difference when it comes time for buyers to make an offer.
Focus On Advertising Your House Through Online Platforms
With the recession, there are many houses on sale. However, not all sellers can close the deal. While there are no hard and fast rules to closing a deal, you need to focus on advertising your house through different online platforms. Online platforms are great places for sellers to market their homes. This is because it is easy for them to reach a large audience in a short period. Also, these platforms have an extensive database of potential home buyers who are looking for properties like yours. As per the National Association of Realtors (NAR), as much as 51% of buyers found their current home through the internet in 2022. That’s a huge number. Hence, sellers can’t afford to overlook their online presence in today’s market.
The internet is where most credible and trusted house buyers look for homes, so if you don’t promote your property there, you’re missing out on a huge number of prospective buyers. It’s important to have an online presence because it’s the best way to reach people who are searching for homes in your area, and it’s free. As a buyer, however, if you are looking for a cheaper alternative than single-family homes, then consider buying condos. When looking to buy a condo, explore online portals where condo sales are listed. In many cases, this will be cheaper than buying a single-family home, and you’ll still get all of the amenities that come with owning property in general.
Moreover, buying a condo has multiple benefits, including saving money on monthly mortgage payments or maintenance charges. It can also be beneficial from an investment standpoint. However, sellers can easily determine whether their condo will be attractive to potential buyers or not with the help of online platforms. If you find that it is not attracting enough interest from potential buyers even after several weeks or months of being listed, then it might be time for some changes in the way that you market your home.
Repair & Renovate
If you’re thinking about selling your house during the recession, you might be worried that you won’t get as much money out of it as you would have in an ideal market. Luckily, there are a few ways that can make your house attractive to buyers and increase its value. One of the best things you can do is repair and renovate. That’s right! It may seem counterintuitive to spend money on repairs at a time when everyone is tightening their budgets, but Christopher Peacock, Founder and CEO of Christopher Peacock, says that “renovating a kitchen or bathroom will drastically increase the value of your home.” According to a recent survey conducted among 1,000 Americans in 2022, 44% of respondents said their preference to buy a home would increase if the country plunged into a recession. This figure implies that houses will be in high demand regardless of whether or not there is an economic downturn.
Run for the Hills
In a time when most people are feeling the effects of the economy, it’s important to keep your head up and look for ways to make your home sale stand out from the rest. If you’re looking to sell your house during the recession, these three bright spots can help you close the deal.