Get Your Home Ready to Sell in a Down Market
As a homeowner, you may be considering selling your home, and you are probably aware that the timing and the housing market need to be right in order to maximize your profit from your most valuable asset. There has been some concern growing among homeowners lately that there may be the onset of a housing crash in Wittmann. Should this occur, the house prices would fall dramatically and homeowners all over the area would lose value in their homes.
Over the last few months, the United States has seen the highest inflation rate in decades. We even hit a 40-year-high over the summer with a 9.1% CPI. With interest rates rising, many home buyerssimply cannot afford a new home. This is having a larger impact on the housing market by reducing demand. Even those who can afford the rate hikes are hesitating to make the investment.
If you own a property in Wittmann or any other areas of Arizona, it is important to have a plan in place in the event of a housing crash. Having a strategy to protect your asset will be essential, especially in the event that you need to sell the house. At Your Home Sold Guaranteed Realty AZ, our realtors are well-versed in the Arizona real estate market, and we understand the best principles that you can employ to keep your assets safe.
Below we have outlined some of the most important concepts you need to know about owning a home and potentially selling it during a housing crash in Wittmann. To learn more about whatever may be coming, continue reading.
Realtors Explain: What Is a Housing Crash in Wittmann?
Prior to developing a plan for maintaining value in your biggest asset, it is important to first understand what the possibilities are when it comes to the real estate market and a housing crash in Wittmann. Everyone knows that a housing crash is a frightening event, but it is vital to know what exactly this type of crash means.
Have you ever heard of a housing bubble? A housing bubble – or real estate bubble – occurs when prices for real estate rise wildly beyond their true value, and this causes a natural correction which will eventually bring those prices back down. This decrease is often hard and fast.
Why do property prices rise? There are many reasons, and here are only a few:
- High demand
- Decreased supply
- Low interest rates
However, there are instances when prices rise artificially high, and they are usually caused by incredibly low interest for borrowing. If there are fewer credit standards for borrowers, this often results in more people getting mortgages.
Even though prices are rising, though, this doesn’t mean that a housing crash in Wittmann will happen. If, however, a bubble bursts, then prices may fall dramatically enough to result in a housing crash and those who owe money on their mortgages will feel the effects.
It is also important to note that housing crashes are not universal in any way. While one market may be crashing, another one may continue to thrive because crashes can occur in local markets, state markets, or in national markets. This happened in 2008.
Housing crashes may also be accompanied by a recession, but that is not universally the case either. They may go hand-in-hand but are not necessarily causal.
What Happened in the 2008 Housing Bubble?
In 2008, the decline in housing prices and burst of the housing bubble eventually led to the Great Recession in the same year. At that point, the market had been booming steadily throughout the previous years in the decade. In 2006, prices peaked and then began to decline. By December 2008, the Case-Shiller home price index actually recorded the largest price drop in all of its history.
When this drop occurred, many homeowners were unable 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 There Be a Housing Crash in Wittmann?
As you may be aware, the housing market has been quite hot in recent years. Unfortunately, recessionary conditions and high inflation have resulted in a rise in interest rates, and this is causing homeowners to ponder whether or not the market is heading toward a crash.
The first thing to consider is the difference between a hot market and a housing bubble. It is important to remember that 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, most real estate professionals agree that we are largely 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 Affect the Housing Market?
One factor that must also be considered is the role that iBuyers play in the housing market. If a company buys homes that are as-is directly from home sellers, they are known as iBuyers. The benefit of an iBuyer is that the home seller does not need to repair the home in any way, list it, market it, or worry about dealing with a realtor. The house is sold, and they can move forward with their lives.
To determine the ideal price to pay for a home, iBuyers use an algorithm and 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.
If you are considering the potential impact that an iBuyer can have on your local housing market, be sure to contact an experienced realtor who can fill you in on all of the details and make sure you are still able to sell your home fast and for top dollar.
Things to Be Aware of When Selling a House During a Housing Crash in Wittmann
Make Sure the Price Is Right
Whether there is a housing crash in Wittmann 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.
Make Sure Your Home Is Move-In Ready for Home Buyers
Home buyers are not looking to spend any more money than they already will be on 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. 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 Is Everything
As you might have guessed, it is best to avoid selling a home during a housing crash in Wittmann, 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.
Will You Also Be Buying a Home During a Housing Crash in Wittmann?
Should you need to also buy a home during a housing crash in Wittmann, 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.
Allow Our Team to Help You Sell a Home During a Housing Crash in Wittmann, AZ
If the time has come that you need to sell a home even though there is a housing crash occurring, our team can be your local solution. At Your Home Sold Guaranteed Realty AZ, 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.
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 Wittmann. 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.
Sell Your Home in Wittmann, Regardless of the Market
If you truly need to sell a home during a housing crash in Wittmann or a recession, you need to rely on the experience and expertise of a realtor such as ours at Your Home Sold Guaranteed Realty AZ. Although the process may be complicated and challenging, you should not give up hope of selling during a crash. Our knowledge of the local area and our experience is key to helping you sell fast.
No matter what the real estate market conditions look like, we will get your home sold fast and for top dollar. We will help you make smart decisions for you and your family because we know how the home selling process will affect your family long-term. Ready to sell your home?
Give us a call at 623-283-2067 or fill out the form below with the requested information to learn how to get started. We look forward to discussing your real estate goals with you and helping you start your home selling journey.