Selling a House in Tough Economic Times - Home Seller Crisis Guide
Times are tough for home sellers right now. In a general sense, I know this just by watching the news. In a more specific way, I know this by talking to a couple of my neighbors who are trying to sell their houses right now.
I can't change the fact that we are in an economic crisis that makes home selling tough. But I can offer some tips on how to sell your house in touch economic times such as these.
In most areas of the country, people who are trying to sell a house right now will encounter three primary obstacles -- all a result of the current economic crisis we find ourselves in:
The first problem for sellers is that home values have dropped in most markets, and in some places they have dropped significantly. So the first thing you must do is determine what your home is truly worth in the current market -- not what it was worth when you bought it, and not what you think it should be worth. This is more of a problem in some areas than others, but it's still a problem for sellers nationwide.
One of the reasons property values have dropped is the vast number of foreclosed homes currently on the market. As we know, this is the result of the mortgage crisis that cost so many subprime borrowers their homes. So when you try to sell a home in the current economy, you may find that you're competing with foreclosure properties that are priced below market value (even below the depressed market value).
The third reason it's hard to sell a home during this economic crisis -- and probably the biggest challenge of all -- has to do with a shortage of buyers. A lot of people are having trouble getting mortgage loans right now, and for obvious reasons. Lending standards have gone up considerably (credit score criteria, debt-to-income ratios, etc.), and a lot of banks are afraid for their very existence right now. So unless you have nearly perfect credit, you're going to have a hard time getting a mortgage.
This is the problem my neighbor his having up the street. Her house has been on the market for about three weeks now, but she's only had a couple of potential buyers walk through. Other agents have told her listings agent that their clients can't get mortgage loans, so there's no point in bringing them by the home.
Through our other website at HomeBuyingInstitute.com, I was contacted by a person from NBC Nightly News. They wanted me to help them find people to interview for a story they were doing. The segment was about this very issue -- people who are having trouble getting mortgages because of the economic crisis (even people with good credit scores).
Times are certainly tough for sellers right now. And you probably won't sell your house for the amount you would like. If you can stay put and wait out the crisis for a while, that's probably the best strategy for now. But if you simply have to sell (for a job transfer, financial reasons, or whatever the case), there are some things you can do to expedite the process.
The following tips will help you sell your house in the tough economic times we find ourselves in:
Selling a home during this financial crisis is certainly a challenge. But it's not impossible. You may have to reduce your asking price, and you should definitely spend the time needed to stage and promote your house properly. But it can still be done.
I can't change the fact that we are in an economic crisis that makes home selling tough. But I can offer some tips on how to sell your house in touch economic times such as these.
How the Economic Crisis Affects Home Selling
In most areas of the country, people who are trying to sell a house right now will encounter three primary obstacles -- all a result of the current economic crisis we find ourselves in:
- Home values dropping in most places
- Record numbers of foreclosure homes available
- A shortage of buyers due to the credit crunch
The first problem for sellers is that home values have dropped in most markets, and in some places they have dropped significantly. So the first thing you must do is determine what your home is truly worth in the current market -- not what it was worth when you bought it, and not what you think it should be worth. This is more of a problem in some areas than others, but it's still a problem for sellers nationwide.
One of the reasons property values have dropped is the vast number of foreclosed homes currently on the market. As we know, this is the result of the mortgage crisis that cost so many subprime borrowers their homes. So when you try to sell a home in the current economy, you may find that you're competing with foreclosure properties that are priced below market value (even below the depressed market value).
The third reason it's hard to sell a home during this economic crisis -- and probably the biggest challenge of all -- has to do with a shortage of buyers. A lot of people are having trouble getting mortgage loans right now, and for obvious reasons. Lending standards have gone up considerably (credit score criteria, debt-to-income ratios, etc.), and a lot of banks are afraid for their very existence right now. So unless you have nearly perfect credit, you're going to have a hard time getting a mortgage.
This is the problem my neighbor his having up the street. Her house has been on the market for about three weeks now, but she's only had a couple of potential buyers walk through. Other agents have told her listings agent that their clients can't get mortgage loans, so there's no point in bringing them by the home.
Through our other website at HomeBuyingInstitute.com, I was contacted by a person from NBC Nightly News. They wanted me to help them find people to interview for a story they were doing. The segment was about this very issue -- people who are having trouble getting mortgages because of the economic crisis (even people with good credit scores).
Tips for Selling in Hard Times
Times are certainly tough for sellers right now. And you probably won't sell your house for the amount you would like. If you can stay put and wait out the crisis for a while, that's probably the best strategy for now. But if you simply have to sell (for a job transfer, financial reasons, or whatever the case), there are some things you can do to expedite the process.
The following tips will help you sell your house in the tough economic times we find ourselves in:
- I've said it before, but it bears repeating. Proper pricing is critical when selling a home in this kind of market. On top of that, the value of your house has probably changed since you bought it. So you need to find out what comparable homes are selling for you in your area at the current time. If you hire an agent, this is one of the key steps he or she will help you with.
- Staging your home effectively is also extremely important. Sellers need every edge they can get in this economy, and presentation goes a long way in this regard. In many cases, the difference between a properly staged home and one where the sellers made no effort is the difference between an offer and no offer.
- Because there's a shortage of qualified home buyers right now, you need to do everything you can to market your home effectively. You need to reach the largest possible audience to increase your chances of finding the right buyers. If you have an agent, they will handle much of this for you. If you don't have an agent, you can still get national real estate listing without the commissions
Selling a home during this financial crisis is certainly a challenge. But it's not impossible. You may have to reduce your asking price, and you should definitely spend the time needed to stage and promote your house properly. But it can still be done.
Labels: selling
posted by Brandon at
7:03 AM
