Few things concern home sellers more than a possible housing crash. As inflation rates skyrocket, fears of a housing crash are growing nationwide. If you’re going to sell a home in Providence during a housing crash, key information can help you turn your home sale into a success. Follow along as we break down what a housing crash is, how it affects your home sale, and what you can do to make yourself resilient against it.
What is a Housing Crash and How Will It Affect My Home Sale?
If you want to sell a home in Providence during a housing crash, one key ace in your hand is to have a local realtor by your side. A Providence realtor has the localized knowledge to know the ins and outs of the local market. Nathan Clark is one such agent who can help you attract qualified homebuyers in Providence.
We don’t just talk about selling your home. Instead, we offer a Guaranteed Sale Program where we guarantee your home will sell or we will buy it ourselves. What’s more is that we guarantee your home will sell at a previously agreed upon price in your timeframe. You get our agreed upon price and timeframe numbers upfront and in writing before we ever show your home to a homebuyer. It’s like having an insurance policy in your back pocket!
Market Crashes and Your Home Sale: What You Need to Know
With all this talk about housing market crashes, it’s vital that you understand what a market crash is and how it affects your home sale.
A market crash is typically preceded by a real estate bubble. This bubble is created by high demand, low supply and favorable interest rates. A crash occurs when the market becomes so unstable that the bubble bursts. Typically, these unstable market conditions are caused by high interest rates which cause less demand and lead to a drop in housing prices. A market crash can be local or national and may or may not reflect an economy’s overall health.
What We Learned From the 2008 Housing Bubble
The last time there was a housing bubble that burst was 2008. The bubble bursting led to the Great Recession that same year.
The housing market had been booming from the early 2000s through 2006, when housing prices started to decline. In December 2008, there was the largest price drop in history.
Because of this drop, many homeowners were unable to pay their mortgages. In some extreme cases, their homes were worth less than their mortgage. These led to a rise in interest rates which caused many foreclosures. This rise in foreclosures led to a recession.
Is a Housing Crash in Providence Possible?
Because of high interest rates and an increase in inflation, many homeowners are worried about a housing crash.
However, most real estate experts agree that a housing crash is not in the near future because demand is still high while supply is low and lenders have stricter lending requirements.
iBuyers and the Possibility of a Housing Crash
An iBuyer is someone who buys a home as-is directly from the seller. They then fix up the house and flip it, selling the now-renovated home for a profit. These buyers have the power to influence the local market because they sell the flipped houses at prices that are hard for regular home sellers to match.
It’s important to discuss with a realtor if you are concerned about the impact that iBuyers have on the local market.
How to Sell a House During a Housing Crash
Here are some simple tips to help you navigate how to sell a home during a recession.
Price Your Home To Sell
Pricing your home to sell is more important now than ever. If you price your home too high, you will miss out on homebuyers who are looking for affordable homes. If you price it too low, however, you could miss out big on potential profits.
To price your home to sell, work with an expert realtor who can help you determine what price is appropriate for the climate and will net you the most profit.
Have Your Home in Move-In Condition
Another way you can prepare your home to sell a home in Providence during a housing crash is to make sure your home is in move-in condition. Because homebuyers don’t have the extra cash to renovate or make repairs, doing these things yourself will make your home extra attractive to potential homebuyers. While a realtor can point out specific things in your home, it’s always a good idea to get a home pre-inspection and make necessary repairs yourself. You can also hire a professional cleaning company and make sure that the paint and decor items are in neutral colors.
Sell at the Right Time
If you can, it may be best to wait until after the recession to sell your home. If you can’t wait, however, work with an expert realtor who can help you do a comparative analysis of homes in the area, so your home is as competitive as possible.
Selling and Buying at the Same Time
If you need to buy a home after selling your current home, timing may not be as crucial. If you sell your home for a lower price during a recession, you should be able to purchase a home for a lower price as well. As the economy recovers, you’ll be able to sell the new home at a higher price than what you purchased it for.
Sell a Home in a Housing Crash With Nathan Clark
Overall, the best tip to selling a house during a housing crash is to use an experienced realtor to navigate the uncertain waters of the market. At Your Home Sold Guaranteed Realty – The Nathan Clark Team, we have the experience and expertise you need to sell your home regardless of the market.
For more information on how we can help you sell your home and about our home seller guarantees, give us a call at 401-288-3557 or fill out the form below.