what happens to real estate in a recession?

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chuttersnap awL YCtPGv4 unsplash

A housing crisis tends to arise in a recession as many homeowners look to get out of the market for various reasons.

 In economic downturns like 2008, the U.S. real estate market drops drastically, often by at least 30%. 

This is why careful planning ahead is important during tough times – “what to buy before a recession?”

your home may not be worth what you think it will be worth if you don’t take some precautions now.

If you are considering selling your home in a downturn, 

these are some things you can do to make the process more efficient and profitable for yourself:

1. Rely on Multiple Revals:

There are a lot of ways to approach selling your property, but one way that works especially well is to give multiple estimates.

 You can ask friends and family if they know anyone who is buying or sell them on the idea of selling it as well.

 Ask your realtor if they have anyone with a buyer already lined up or if they know of a good group of buyers

 who may be interested in purchasing your home. Asking around might lead to additional buyers which could mean more profits in the long run.

2. Hire a Realtor:

If you have no buyers lined up and your home is still in good condition, 

you may want to consider taking it to the next level and hiring a real estate agent. 

They will be able to do their job better than you with your limited resources and will also be able to find buyers quickly for your home. 

Your realtor can also help you cut down on some of the overhead costs related to selling your property as well, such as preparation of the house or preparing it for sale.

3. Clean the House:

Make sure that there are no things inside the house that are not needed. 

Turn off lights and unplug appliances so that nobody can accidentally leave them on. 

Clean all the furnishings, linens and windows to remove any dust or dirt for potential buyers to see.

 This will help you sell your property faster than if it was in a dirty condition.

4. Put it on TV:

If you do decide to put your home on the market, make sure to run an ad in local TV stations as well as online sites aimed at selling homes in your area. 

If you can also put signs and boards on your home, you will be able to get more exposure for your property. 

Talk to a broker about this and see if they can help you organize the process of getting your home ready.

5. Buyers’ Market:

If your home is in an area with a lot of homes selling, it may take more than just advertising it on the market to sell it quickly. 

Since real estate prices tend to peak in the middle of the year, wait until spring or early summer to put your house up for sale. 

This is when sellers have cleared out their homes due to fears of losing their place to foreclosure or higher mortgage payments

 if they couldn’t sell it for what they wanted by then. This is also the time when new homes are starting to come on the market, which makes your home more valuable.

6. Offer a Discount:

Some sellers offer discounts in the hopes that they will be able to use the money they save to buy other things. 

For example, if you are selling your house for less than its asking price, you could go ahead and keep 

half of what you pay for it or offer a one-time only price point so that you don’t have to go back later to sell it at a higher price. 

You may also have access to certain government programs or subsidies that can help with financing the purchase of another property which may be useful as well.

7. Take Advantage of Tax Write-Offs:

Tax credits can be quite useful if you plan ahead and take advantage of the help that they offer. 

For example, if you buy a new home or renovate your old one and it’s assessed at a lower value because of your work, 

you could get up to $10,000 as a tax credit if you were to sell your home shortly after the renovations are done.

 If you are thinking about selling your property in the near future, have a head start on these kind of transactions and make sure

 that there is nothing wrong with your home so that buyers will not assume anything.

8. Have a Realtor Serve as your Lender:

If you are trying to sell your home with the current market being what it is, it is a good idea to go ahead and have your realtor serve as your lender 

so that they can give you an immediate credit in the amount of the asking price. 

This can help strengthen your position because they will know exactly how much they can afford to lend to you.

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