Be Smart, Sell your House Soon
Whether a coming recession is avoided or not, the housing market has taken a downward trajectory.
And while recently passed, big stimulus might get the economy rolling again, the Fed is expected to keep to it’s course of raising interest rates. Rising mortgage rates will ensure fewer buyers will buy homes and fewer banks willing to stick their necks out to finance home purchases.
Homeowners and mortgagees are in reasonable financial shape (employment, debt, savings) so bankruptcies and foreclosures aren’t anticipated. Yet home prices will drop, which means now is the time to sell. What helps you in this prospect is that most homeowners don’t want to sell. That means competition for your home will still be solid.
Of course, this fall of 2022 could bring economic surprises as the Dems have put the country in a precarious place. It is what it is, and still, the selling environment is good. The prediction from experts is for a recession and housing correction in 2023. If you wait, you could lose 10% to 20% of your selling windfall. It’s time to find a Realtor near you and get the price you’ve wanted and move on with your life.
6 Months Ago, They Said Buy, Buy, Buy
It’s amazing to look back at the news stories 6 months ago, where buyers were strongly advised to buy — that home prices would never go lower. They were hypnotized into a fear of missing out mindset (FOMO) that has created these record high prices.
Capitalizing on a Once in Lifetime Value
For you, selling your home soon allows you to harvest the value of your hard work (the daily grind and commute) and lets you progress to a better life. People who stay stuck often fall into negative lifestyles and much of their potential goes unrealized. Moving to a new neighborhood or city (where you want to live) brings new life and personal growth for your family.
It can launch your dream life (what are dreams for anyway?)
Not moving because you’re comfortable (you can be comfortable in your next home too), are afraid of change, or your kids will miss their friends, are just hurdles you need to surmount. Many of the neighborhoods people fear leaving aren’t all that great (pollution, crime, politics, coming recession). Truth is, they’re better off elsewhere.
The 2008 housing crash and recession was real. It sent everyone a strong message that these economic downturns cause real and lasting financial harm. Are you willing to be the next victim? While the threat depends on the safety of your job, there are no guarantees of job security. With technology and cost cutting, any single worker may be cut.
Deglobalization is real, and big corporations will face plummeting sales and now, rising taxes.
“A lot of people are saying, ‘Am I making a mistake in waiting because I’m never going to get that dream price again?’ There is this fear they might miss the peak,” Tracey Murray Kupferberg, an agent with Douglas Elliman in Long Island, New York. said in CNN interview.
Reasons to Sell Soon
- home prices are falling
- buyers are cancelling their purchase offers and bailing ou
- asking prices are plummeting
- price discounting is picking up steam
- home listings are increasing (up 28%) so there is somewhere more affordable to move to
- homebuilders have stopped building and new permits are plummeting
- a recession is overwhelming predicted by economists
- your mortgage is coming up for renewal at a much higher rate on your balloon mortgage, and it’s looking bad
- your mortgage payments are about to rocket
- you might be able to live mortgage free – a big worry off your plate
- you’ll have extra funds for kids college tuition
- you can relax for a bit, take the pressure off, clear your mind
- Biden and the Fed says they’ll do anything and everything to bring inflation down
- with remote work from home employment or business startup, you don’t need to say there
- your current home is too much to manage
- your roof, interior, HVAC will need big repairs so is it worth it?
- mortgage rates are still low enough if you need to finance your next home
Find a Good Realtor
It’s time to search for a Realtor on Google. This search process allows you to discover more about them, their selling philosophy, expertise, negotiating skill, and ability to attract strong pre-qualified buyers. They bring vital skills and help you make the sale quick and smooth. And they can help you relocate.
Selling and Moving onto a Wonderful Place
I have a relative who just sold their beautiful Florida home near Tampa for a great price. The writing is on the wall even for the amazing Florida housing market. It’s the right time to exit, even with early retirement. The oppressive Florida heat is the number one factor cited. Next year, prices will be much lower and it will be harder to sell. They found a great place in New Brunswick, Canada, where prices are lower, the lifestyle is relaxed and the community warm. They’ve got a knack for good timing.
For those living in Toronto, Vancouver, Seattle, San Francisco, San Diego, Los Angeles, Miami or Denver, the price you can still fetch is outrageous. Those prices won’t be around again for a while. Politicians are facing big pressure to allow housing development and support construction. More supply will push prices down.
A recession could plummet housing prices 30%, while mortgage rates simultaneously balloon mortgage payments. At some point homeowners won’t be able to pay their mortgages. In California, the mortgage payment increases are several hundred dollars with more coming.
Home prices will begin to plummet this fall as many homeowners finally realize the recession is real. For many, their home is their only, once in a lifetime opportunity to make a lot of money. Treating your home as an investment is wise.
I know many homeowners sitting on $1.5 million dollar homes and they’re thinking about selling and moving to somewhere nice and more affordable. They stick with their tiring jobs making questionable earnings, when they could sell and start their own business. Dreams could be realized.
Still the question is after selling (sell first, then buy) is where do you go? How about Costa Rica, Mexico, Eastern Canada, North Carolina, Tennessee, or Spain? With a million dollar winfall in cities like San Francisco, Toronto, Vancouver, San Diego, or New York, it makes sense to cash in and let your mind go free. You can rent a place somewhere and give yourself plenty of time to explore and plan the next phase of your family’s life.
Consider an exciting adventure.
Sell Your House Fast
A few years ago, the advice to sell slow was valid. Taking your time to position for a bidding war was wise. Sellers in some cases earned an extra million on their property. Now the bidding wars are gone. Buyer demand for homes above $500k is still strong, but the plug will be pulled by October.
Instead, you might be wise to work with your Realtor to sell quick. Asking prices are dropping fast already and time to sell is lengthening. That’s not good. In this coming panic selling, prices will drop to a point where homeowners feel as though they’re taking a loss.
For some owners, who bought cheap, the profit is outstanding. Be good to yourself and accept the bounty the system is about to endow upon you. You worked hard, and you deserve it. It’s just a box made of two by fours on a cement foundation wrapped in drywall. It’s not worth what you’re selling for.
Without speculative FOMO buyers, the real actual value of your home is going to be seen in the 12 months. You won’t be happy with it.
Time to Prepare Your Home for Sale
Yes, home prices are on their way down. It’s time to quickly prepare your home for sale. Contact a Realtor who has a strong circle of buyers and whom you can see does excellent marketing. Marketing supports the value proposition to those who seriously considering buying. They could exit fast without that sales support.
No one knows more about this truth than luxury home Realtors. Luxury Realtors stretch time frames, increase visibility, promote the value and opportunity, push the dream surrounding the luxury property, and they ultimately get a huge commission for getting the best selling price. Luxury home sellers expect that and use real estate marketing to its fullest. New Realtors or low quality Realtors, just sell it for a quick buck.
But you’ll want to ensure you sell fast to get your price and get out of town. Recessionary trends are just too strong and the price will plummet.
Top Ways to Get a Great Price
- advertise strongly to reach the best buyers
- list with a Realtor who can leverage the MLS listings — maximum visibility
- improve your home’s curb appeal
- ensure your Realtor takes great photos with inviting layouts and angles
- have the Realtor use Youtube, and advertise on Google and Facebook (target the right audience)
- tell everyone in your neighborhood you’re going to sell
- clean the house and put as much as you can fit into a storage unit
- lower your asking price below comps and hold a weekend blitz style selling event with your Realtor
Moving onto a Better Life
Or, you can sell, rent somewhere, and enjoy your windfall, perhaps the only windfall of your life. This steep climb in house prices only happens every couple decades or so. It’s very infrequent. Don’t look back on today with doubts about how you managed this selling of your asset. Years later, you’ll be glad you progressed.
The stock market won’t provide these kinds of returns.
Rich people insist on getting full value. It’s like they say to themselves “because I’m worth it.” If you thought like them as a habit, you’d be enjoying an easier life.
Rich People Build their Value in All Transactions
Most rich people build value over time through capturing full value in each transaction. They know the importance of their real estate investment and they know where value is. In this case, it’s a house, condo or increasingly, a piece of land. They’re rich because they’re smart, clever, and persistent.
Consider what you need to do to present value to these excellent buyers. They are special and financially enabled people to be able to buy in 2022.
Digital Real Estate Marketing
Great Realtors have a strong marketing presence. If you can’t find them online, then great buyers can’t either. Maximum online visibility, great website content, and a smooth prospect conversion path means the Realtor knows modern marketing and lead generation. Their website tells you everything about what they’ll do for you.
Get the best Realtor to draw maximum interest in your home so you get the right price. The Realtor will earn their commission by capturing your desired price.
Here’s some More Tips:
- Find a Steller Realtor — your judgement in choosing the best real estate agent is critical to getting the best price. Basically, if you leave it to your Realtor, you’re getting the best price they can get. It’s not about negotiating either. It’s about the marketing process that generates a group of eager, qualified buyers who will compete for your home. If the Realtor doesn’t understand this, don’t hire them.
- Work with your Realtor to Create a Powerful Selling Strategy — if you don’t motivate them to put things in high gear to use an intelligent buyer lead process, they probably won’t do it. It’s hard work that requires intelligence and strategy and you’re the commander in chief who can demand it.
- Set an asking price that attracts buyers — 10 to 15% below comps is fin because your marketing will build a bidding war event. Only you can only set an attractive price to buyers if you’re ready to ensure there’s enough good buyers to bid up that price. Good marketing is your security.
- Get your home inspected — not knowing what is wrong with your home from their perspective puts you at a big disadvantage in negotiations. And if they know you don’t know, they’ll really take advantage of you. Your Realtor who said they are the great negotiator for the ages, will be on their knees in the dark. Know what your strengths and weaknesses and how to play them beforehand. And if you’re selling the home as is, then your lack of inspection tells buyers your house is a big blind gamble.
- Stage your home professionally — home stagers are proven to be well worth their money. They take the price lowering features out and bring in the items which help you achieve true market value. They learn through experience what gets buyers into a frenzy.
- Conduct a blitz marketing campaign that brings in a lot of eager buyers — it’s all about location? Well yes, it’s about all of them meeting at your location with their wallets, on a weekend of intense competition. There has to be a time element to get buyers focused and bring out their maximum buying intent. I know a Realtor who lives off of this blitz strategy and he dominates his market. The weekend brings focus and seriousness into play. Either they get into the game, or they’re left out. Good Realtors know how to force a serious mindset in buyer prospects and their agents. Time is used as a selling tool yet it still has to be done well.
- Negotiate value with the buyer — Blind bidding on your property or negotiating with buyers. Even the top buyers will waver on the value of the home. Your Realtor has to be sure of the full value of the home and to respond and then up the ante through communicating added value. Let buyers think they’re talking you down, when you’re actually finding ways to prove the home’s extra value.
Some additional selling strategy resources:
Housing Market Crash | Stock Market Forecast | California Housing Market | Florida Housing Market | Boston Real Estate | Los Angeles Real Estate | San Diego Real Estate | Housing Market Outlook Q4 2022 | Housing Market 2023 | | Housing Market Predictions for Next 5 years