Be Sure Your House Is Prepped to Sell Fast in a Down Market
If a housing crash in Surprise happens, the loss in home worth could make selling your house more difficult. Selling during a housing crisis may result in severe losses, if you can sell at all. Obviously, homeowners do not want to think about this.
Although this sounds pretty frightening, there are ways that you can prepare yourself and your home for a crash, and it is essential to have a plan in place just in case. Real estate experts concur that a softening of the market is very likely sooner rather than later, and this is a variable to keep in mind when selling the home.
You may be surprised to find out that the United States has been experiencing a significant inflation hike over the last few months, and it hit a 40-year-high with the 9.1% CPI over the summer. As a result, home buyers have been reconsidering their timing for making such an important investment decision. In fact, they have been largely leaving the housing market completely because the prices are simply too high for their budgets. This, in turn, creates a reduction in the demand for homes, and home buyers who can afford the higher prices are still opting to leave the market until the situation returns to normal.
Be sure you have a plan in place for your Arizona property in the event that a housing crash in Surprise actually does occur. If you need to sell during this time, your well-developed plan can protect your asset and save you money. You can also rely on our team at Your Home Sold Guaranteed Realty AZ to provide you with the information and assistance you need. And this starts with the following information you should be aware of concerning the details of a housing crash in Surprise.
What Exactly Is a Housing Crash in Surprise?
First and foremost, let us begin this discussion by providing information on factors that can seriously affect the value of your home and your potential to sell it for the highest price possible. A critical factor is a housing crash in Surprise. While this is frightening, educating yourself about the ins and outs of a crash can help you in the event that it occurs.
We will start by defining a housing bubble, or real estate bubble. This happens when real estate prices increase 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
Other times, though, prices can rise artificially high. This often happens because of really low interest for borrowers. Fewer credit standards usually result in an increase in the number of people applying for and getting a mortgage. Even if prices are rising, that is not a confirmed indication of a housing crash in Surprise. When the bubble bursts, however, this is when the prices fall significantly enough to cause a crash. Homeowners with a mortgage will feel the effects.
Remember, housing crashes are not universal, and a crash in one market may not be the cause of a crash in another one. Housing crashes can occur in local, state, or national markets, which was the case in 2008.
Housing crashes may also 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.
Understanding the 2008 Housing Bubble
In 2008, a Great Recession was caused by a decline in housing prices and the burst of the housing bubble. Up to that point, the housing market had grown steadily throughout the previous years in the decade. In 2006, prices peaked but then began to decline. By 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 endure 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.
Is a Housing Crash in Surprise on the Horizon?
Even though there has been a hot housing market over the last few years, interest rates have been on the rise due to recessionary conditions and high inflation. This has led homeowners to wonder 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 Surprise, 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.
What Are iBuyers and How Do They Impact the Surprise, AZ, Housing Market?
As a homeowner, you should also be aware of and consider the role of iBuyers in a potential housing crash in Surprise. 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.
An experienced realtor can help you when it comes to 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.
Important Aspects of Selling a House During a Housing Crash in Surprise
The Price Has to Be Right
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 Surprise 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.
Home Buyers Want to Move In Immediately
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.
Timing Can Be Tricky
Obviously, no one wants to sell a home during a housing crash in Surprise, 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.
Decide If You Can Also Buy a Home During a Housing Crash in Surprise
Should you need to also buy a home during a housing crash in Surprise, 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.
Our Realtors Can Sell a Home During a Housing Crash in Surprise Fast
We know that the economy can be worrisome for home sellers, but we do not want you to 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 Surprise, 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 Surprise. Our Guaranteed Sale Program is here to absolutely guarantee that your home will sell at an agreed-upon price and within a specific timeframe. If not, Tim Kendrick will buy it himself.
Contact Us to Sell Your Home During a Housing Crash in Surprise, AZ
If you need to sell your home and it happens to be during a housing crash in Surprise, make sure to 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 you should 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 the highest price possible, 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 Surprise. We are excited to talk to you about your real estate goals and help you begin your home selling journey.