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Getting the Best Deal for Your Property in a Recession

Covid-19 has caused an economic downturn that few experts predicted. For the first time since 2008-2009’s Financial Crisis, property sellers face the challenge of marketing homes during a recession.

It can be a daunting prospect as a recession becomes a buyer’s market and sellers have to accept less money for their homes than they would have pre-slowdown. While this might be the case theoretically, it does not need to be your reality. Here are ways to get a great deal on your property despite the pandemic slowdown:

Timing is everything

Many sellers might not have a choice but to sell their homes at this challenging time. However, if this is not the case for you, it might be a good idea to adopt a ‘wait and see’ approach. Six months can make a significant difference in how much money you could expect to get from a sale. Once an economy turns around and starts heading out of its recessive state, selling prices improve. 

In the interim, let your house earn some money for you. California residents rely on Affordable Property Management to help them rent out their properties. The company’s agents ensure that tenants pay their rent, repairs and maintenance are performed, and rental agreements are adhered to.

Affordability of a sale

Selling a home can be expensive. Among the costs you should expect to pay are agent commissions, closing costs, repairs and maintenance, and your mortgage balance. Factoring these numbers into the equation, determine what kind of net proceeds amount you can expect. 

Remember that you are unlikely to get the same price you could have asked for before a recession. This eats into the final sum you walk away with after completing a sale. If you are relying on this money to put down a deposit on a new home, evaluate your options. However, if you will wind up still owing your mortgage lender money, consider renting your house out instead.

Hold your nerve

If you know the asking price on your house is realistic and market-related, do not enter any negotiations lightly. Buyers will always want to make a lower offer, as is their right. During a recession, some sellers panic and slash their selling price because they think there will not be another offer on their house.

If you have time to spare and selling the home is not something that needs to be done immediately, put your house on the market and wait it out. A buyer who is willing to pay your asking price is out there, but it might take a while before you connect with them.

Make improvements

Ensure that the house is in good shape by keeping repairs and maintenance up to date. You might have more success getting your asking price by doing some cosmetic work. This could include a coat of paint or hanging new kitchen cabinet doors.

Avoid significant renovations that cost considerable sums of money. Before undertaking them, ensure that you will get the money back by increasing your asking price. If a job will not drive the asking price up, leave it.

Appeal

From the time a potential buyer pulls up outside your home until they leave, you need to ensure that they gain a favorable impression of your property. Stage the house so that it appears airy, light, and uncluttered. 

First impressions count, and your home’s façade and garden are an integral part of this. Keep your garden neat and tidy and ensure that the house’s exterior is well looked after. According to experienced real estate agents, curbside appeal is critical in securing a sale at your asking price.

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