Selling During a Recession? Tips to Close the Deal
When the housing market gets into a slump and the US goes into a recession, selling property isn’t usually a good idea. However, that doesn’t mean you should give up on selling your house. Selling up can’t always be helped, and you should always sell when the time is right for you (not the rest of the world).
According to recent research by Deloitte, the housing sector witnessed a decline in 2022. New residential construction decreased 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. If you have no choice but to sell during this period of low consumer confidence, here are our top tips on selling during a recession.
1. 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. This is because they won’t want to pay more than the market value. To avoid this situation, do your 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.
2. Focus On Online Advertising
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 online, you’re missing out on a huge number of prospective buyers. Plus, having an online presence is the best way to reach people who are searching for homes in your area. It’s also free.
However, as a buyer, 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. Plus, 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’re not attracting enough interest (even after several weeks or months), consider changing the way you market your home.
3. Repair & Renovate
If you’re considering selling your house during a recession, you may be worried you won’t get as much money compared to selling 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. 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.
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. If you’re looking to sell your house during the recession, these three bright spots can help you close the deal.
Are you looking for a way to sell your house fast during a recession? The team at Brotherly Love Real Estate can help. We buy houses fast for cash. Contact us today to get your FREE cash offer and chat with our expert team of real estate agents.