With Covid19 wreaking havoc on businesses and people’s lives and unemployment claims reaching record-breaking numbers, home sales have plummeted. If you’re considering selling your home, learn about selling during a recession and some tips to help you navigate it.
Should You Sell During a Recession?
To determine whether it’s right for you to sell during a recession, ask yourself these questions:
- Am I planning to buy a house simultaneously? Although selling a home during this time may be less favorable, buying can be an appealing proposition. If you’re planning on purchasing a new home after the sale of your current one, a bargain price may help balance out the reduced price of the one sold.
- Can I afford to sell? Think about this seriously. It takes money to sell a home. Even if you consider a lower price, you still need to have the ability to cover your expenses. So, you have to weigh this with your net proceeds concerning the costs for selling. There are standard selling fees, including closing costs, agent commission average (5.8% nationally), market preparation start, seller concessions, home inspection fees and repairs, and the remaining balance on your loan.
TIP: Check out the Simple Net Proceeds calculator to see what your initial numbers show. If you discover that you lose money by selling, hold off if you can. If that’s impossible, an agent can inform you of your options.
- What’s my opportunity cost? Are you selling because of relocation for a job? Depending on where you’re going, a market downturn could be a small inconvenience instead of a game-changer. Do you need a bigger home? Are you downsizing because kids are gone and don’t need a big home anymore, or do you want to live closer to aging parents? Sometimes, capitalizing on a good opportunity outweighs the downsides of selling your home for less than if done in a healthy economy.
If, after considering these questions and deciding to sell, there are some steps to ensure your home is ready for the market.
Tips to Selling a Home During a Recession
To give your home the best possible chances of selling, here are some tips to help you sell your home.
Tip 1: Focus on aesthetics. Go through your home and give it a deep clean and a decluttering. Throw out anything you haven’t used in a year, and minimize everything. Remember, buyers want to see *themselves* in your home, not you: clean your carpets, windows, walls, and baseboards, and dust.
Tip 2: Consider curb appeal. Powerwash the exterior and eliminate any dirt or other debris that makes it look dull. Wash the front door and porch and remove cobwebs from lighting fixtures. Depending on your location and time of year, plant a few flowers or set out some color bowls. Trim overgrown hedges and pull weeds. Doing these things will dramatically increase the curb appeal fo your home.
Tip 3: Set your listing price and market your home. Do your homework and see what other homes in your area have sold for. Contact an agent for help. Then, take some good quality videos and photos and post them on your social media accounts. Schedule private showings and monitor comments on your posts.
Need to Sell Quickly? Contact Bob Buys Houses
If you don’t have time to do the above, contact Bob Buys Houses. We buy your home for cash and can get you closed quickly and with money in-hand shortly after. We require NO fees or commissions and purchase homes in the Salt Lake City area and beyond.