Recession! It is a scary word when you are considering your future financial situation. Will we see a full-on recession in the US in the coming months? How will Philadelphia be impacted if there is a recession and what does it mean for you selling a house if there is a recession? WPVI News Channel 6 in Philadelphia reported recently that there are signs of recession in Philadelphia already even though some say that recession is not inevitable. If you are still not sure what a recession even is and how it can effect selling your house in Pennsylvania, you can read more about that here.
Here is some advice on what to anticipate when selling a property during a recession if you are considering selling your home and have some flexibility over when you want to move.
During Recessions, Prices Are Lower
Recessions are actually much better for buyers, which is bad news for sellers. During a recession, home values frequently stagnate or even decline, and depending on the state of the economy, fewer individuals may be able to afford to buy a home at all. The purchasers who are qualified and prepared to take immediate action on a sale are few and far between because the majority of individuals are limiting their budgets and are not wanting to spend a lot of money on a home.
There are still many things you can do to increase the desirability of your house during a recession, but the first and most important fact is that, if you have the option, a recession is not a good time to sell. If you must sell, sell quickly.
Timing Is Crucial
In such case, when is the ideal time to sell a house? This is where things become tough because the ideal moment to sell a house is frequently just before a recession. Although home values can decrease during a recession, they typically reach their peak just before it begins, so it makes sense to sell high and buy low if you can.
Of course, it’s difficult to anticipate with precision when home prices will begin shifting more in favor of a buyer’s market than a seller’s market; if it were possible, everyone would be investing wildly in real estate. Therefore, if you want to offer your home before a recession, go ahead, but keep in mind that it can be a risky game with no assurance of success.
Homes In Poor Condition, Older, Or In Less Desirable Areas Will Lose Value Faster
Naturally, every seller believes that their home is among the best in the neighborhood, but if you’re honest about where you live, you know that there are undoubtedly both nicer homes and homes that are probably not nearly as nice as yours. However, are you aware of what potential buyers on your street and the streets nearby are looking for?
Properties that purchasers don’t desire as much are going to lose value more than homes that buyers do want more, even if this seems like an obvious truth. This could indicate that buyers are prioritizing specific lot sizes or square footage in their house searches, or it could indicate that a particular number of bedrooms or bathrooms is in high demand in your neighborhood.
Make Any Improvements You Can Make Before Listing
Some sellers believe that by selling before a recession, they may completely avoid staging their home for a buyer, but the opposite is actually true. You don’t really have time to get bogged down in the inspection or appraisal process if you’re selling your property before a recession because you’re working within a window of time that could close tomorrow.
Before listing their house, some sellers choose to hire an inspector so they can find the majority of potential problems and fix them before any potential buyers even set foot inside. 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 key at this time.
Price Reasonably And Don’t Plan To Get Top Dollar
If a recession is imminent, time is of the essence. As a result, you really don’t have time to test the market with a fantasy pricing that you hope would appeal to some uninformed but desperate purchasers. In the worst case situation, the recession can begin as you are negotiating with a buyer who had first offered a price you were willing to accept. the buyer who would have happily purchased your home a few weeks ago will suddenly find themselves in a buyer’s market and will probably advise you to negotiate with someone else.
What does a fair price mean? If you’re unsure, ask a real estate agent what they believe your home might sell for tomorrow, then make any necessary adjustments.
Recessions are cyclical, so if you miss this one, there will be another one in a few years. It’s vital to be cautious not to get overconfident and try to plan things too close to the peak. Sellers that have the freedom to time their house sales according to the economy are in a perfect position 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 717 Home Buyers
We have a current knowledge of the housing market in Philadelphia and can help you think through the options. Give us a call at 717-639-2164, and we’ll be happy to help you out. You can read more about how we operate here. We have many great Google reviews you can check out here.
If you decide to sell quickly and avoid the falling prices in a recession, we make reasonable all-cash offers for houses in the Philadelphia region and would be pleased to evaluate your circumstances and make you one. Whatever the reason you need to sell your property quickly, like pending foreclosure or even terrible conditions like termite damage, call us at 717-639-2164.
About Josh Eberly
A native of Lancaster County, Josh’s roots run deep in his commitment to this community. He especially enjoys helping people find solutions through real estate. Josh is a seasoned investor with experience in many sides of buying and investing in real estate. Josh enjoys reading, listening to podcasts, digital marketing, and hanging out with his family. Feel free to connect with him here.