Learn the Right Ways to Prep Your Home to Sell Fast in a Down Market
Are you prepared for a potential housing crash in Litchfield Park, AZ? You want to feel safe no matter what happens. While real estate experts largely agree that only a softening of the market is bound to happen rather than a full-blown crash, it is still an important variable to keep in mind.
Over the last few months, the United States has been experiencing a serious inflation hike. So much so, it hit a 40-year-high with the 9.1% CPI over the summer. Because of this, home buyers – even those who can afford the price increases – have been reconsidering their decisions to invest in a new home. This has led to a reduction in demand for homes because the mortgage hikes have pushed homes too far out of home buyers’ price ranges.
If a housing crash in Litchfield Park does occur, you need to have a plan in place for your home. Should you find yourself in need of selling the house, your plan will provide you with the best strategy for protecting your asset and maximizing your profit from it. Our realtors at Your Home Sold Guaranteed Realty AZ are here to offer you the information, resources, guidance, and tools you need to achieve your home selling goals, even during a housing crash in Litchfield Park. Let us begin our assistance with the information below which discusses the details of a housing crisis.
How Is a Housing Crash in Litchfield Park Defined?
We will begin our discussion by defining the potential factors which can seriously affect the overall value of your home as well as its selling price. One of these factors is a housing crash in Litchfield Park, a very scary thought for most homeowners. The important thing is to educate yourself as much as possible so that you can be prepared in the event that it actually occurs.
First, you need to understand what a housing bubble, or real estate bubble, is. This phenomenon is when real estate prices rise wildly above their true value. A natural correction will eventually occur to return those prices to normal, and this crash will be fast and hard.
There are several common reasons why this can happen, including:
- High demand
- Decreased supply
- Low interest rates
You should also be aware that prices can increase artificially high due to low interest rates for borrowers. With fewer credit standards, there will be an increase in how many people apply for mortgages. However, you should not assume that a rise in prices is indicative of an upcoming housing crash in Litchfield Park. The bursting of the bubble will result in the significant lowering of prices which can cause a crash, and homeowners will feel the effects.
Homeowners in Arizona should remember that housing crashes are not universal. The onset of one crash in a local market does not mean another one will occur in a different location. Housing crashes can occur in local, state, or national markets, as we saw in 2008.
Housing crashes can be accompanied by a recession, but that is not a universal occurrence either. They may work together and accompany one another, but they are not necessarily caused by each other.
2008 Housing Bubble: All You Need to Know
With a decline in housing prices and the bursting of the housing bubble, a Great Recession occurred in 2008. The real estate market had been steadily increasing throughout the previous years, but the prices peaked in 2006. After this, in December 2008, the Case-Shiller home price index actually recorded the largest price drop in history.
Because of this major price drop, many homeowners had to face the inability to pay their mortgages. They also found themselves with homes that were worth less than the mortgage in total (a negative-equity position). In this occurrence, banks and lenders found themselves responsible for the mortgages and led to an interest rate hike. Many homeowners couldn’t afford the hikes. As expected, many foreclosures resulted as well as the spark for a recession.
Will We See a Housing Crash in Litchfield Park?
In the last few years, there has been a hot housing market, but interest rates have recently been on the rise because of recessionary conditions and high inflation. Many homeowners are now wondering if the market is heading toward a crash.
The first thing you have to know is the difference between a hot market and a housing bubble. Housing bubbles are pretty rare and defined by unsustainable growth in housing prices as well as low mortgage rates. A hot market, though, is far more common and is influenced by local market conditions as well as supply and demand in the locality.
Because demand is high and supply is low (the most basic and essential concepts of the economy), most real estate professionals agree that Litchfield Park, in general, is not heading in the direction of a housing crash. Home buyers are more creditworthy, and lenders have developed stricter lending requirements. Additionally, home sales have been dropping and sales prices have been rising.
Even though interest rates are higher than normal and this can lead to lower housing prices or a plateau in prices, there is no indication that we are certainly heading for a housing crash in Wittman similar to the one in 2008.
High interest rates may lead to lower housing prices or an overall plateau in prices, but this doesn’t mean there will be a sharp crash like the one in 2008.
How Do iBuyers Impact the Litchfield Park, AZ, Housing Market?
What is an iBuyer and how do they impact the housing market in Litchfield Park? These are questions that homeowners need to be aware of, especially if they are planning to sell a home soon. An iBuyer is an organization that purchases a home as-is from a home seller with no expectations of repairs or renovations. It makes the home selling process much simpler because home sellers do not have to repair, renovate, market, list, or sell the home with the help of a realtor. They can simply sign the document, get their money, and move forward.
An algorithm is used by iBuyers to determine the ideal price to pay for a home. They make a profit from those homes by fixing and selling them at a higher price. This is a relatively new concept, but they can drastically change the local market. Home sellers who are not willing to sell to an iBuyer cannot compete with the flipped homes that iBuyers are offering, so that can severely impact the overall prices in that region.
With an experienced realtor, you will be able to understand the potential impact of an iBuyer on your local housing market. Our realtors are happy to fill you in on all of the details and make sure you are still able to sell your home fast and for the highest price possible.
All the Things You Need to Know to Sell a House During a Housing Crash in Litchfield Park
Ask the Right Price
The asking price of a home is going to be an essential factor in the speed at which your home sells, no matter the state of the housing market. If there is a housing crash in Litchfield Park or a full-on recession, pricing your home properly is critical. You may have to reduce the price lower than expected due to higher interest rates. If the price is too high, you have the potential to scare away home buyers who are looking for a cheap home to compensate for the rise in mortgage rates. A price that is too low will result in you missing out on profits from your asset.
The best way to make sure your home is priced correctly is by working with a realtor who has insider knowledge of the local market, especially during a recession. Your realtor could figure out the pattern of home prices and help you develop an unique pricing strategy for your home that an iBuyer’s algorithm could not come up with.
Get the House Ready for Immediate Occupancy
Home buyers do not want to spend any more money than they already have on the purchase of the home, so it is crucial that they do not have to repair or renovate. If your home is move-in ready, it will be far more attractive than others which do require work.
If you want to sell a home fast, make the investment in it first. It will be worth it. You should get a pre-inspection, make necessary repairs, hire a professional cleaning service, and ensure that furniture, decor, and colors are as neutral as possible. Our realtors can give you more specific details for selling your home fast.
Get the Timing Right
Obviously, no one wants to sell a home during a housing crash in Litchfield Park, but if your circumstances dictate that you must, the timing will be tricky. You should also be aware that you may end up selling the house for less than you had originally paid for it.
Because the timing of the sale can be so tricky, it is important that you work with an experienced realtor who can provide you the assistance you need to consider prices in the local market and help you determine how long you may be able to wait until prices fall even lower.
Buying a Home Can Be Helpful
Should you need to also buy a home during a housing crash in Litchfield Park, the timing issue may not be quite as critical. While you will likely be selling your home for less than you expected or hoped, you will also be able to buy a home for a much lower price. Obviously, you want to buy low and sell high. Keep this in mind as you work through the real estate process.
When the economy recovers – and it will – your equity in your new home will grow and you can even sell your new home for a higher price than the price you paid. This will all work in your favor.
It Is Possible to Sell a Home During a Housing Crash in Litchfield Park
We know that the economy can be worrisome for home sellers, but we are here to make sure that you do not panic. Stay calm because we are offering our services to you with unique guarantees that are unparalleled in the real estate industry and especially throughout Arizona. If you need to sell a home during a housing crash in Litchfield Park, we can help you make that happen!
With our knowledge of the local real estate market as well as our experience in the industry, you can rest assured that your home will sell fast and for top dollar, even in a housing crash in Litchfield Park. Our Guaranteed Sale Program is here to absolutely guarantee that your home will sell at an agreed-upon price and within a specific timeframe. But if we can’t, Tim Kendrick will buy it himself.
If a Housing Crash in Litchfield Park Occurs, We Can Sell Your Home
If you are considering selling your home during a housing crash in Litchfield Park, it is essential that you contact our experienced and skilled realtors at Your Home Sold Guaranteed Realty AZ. The home selling process may be more stressful and challenging during tough economic issues, but we are here to make sure that you never give up hope of selling during a crash. Our knowledge of and experience in the local area are key to helping you sell fast.
When you need to sell your home fast and for top dollar, we can make sure it gets done regardless of the current market conditions. Our realtors are dedicated to ensuring you make the right decisions for you and your family because we understand how the home selling process can affect everyone in your life for years to come.
Be sure to call our realtors at 623-283-2067 or fill out the form below with the requested information to learn how to get started on the home selling process during a housing crash in Litchfield Park. Our team is excited to talk to you about your real estate goals and help you begin your home selling journey.