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Selling your home can be a challenge during times of economic prosperity, but during a global crisis? Forget about it! At least that’s what most people think, but with the help of a few creative techniques, we show you how to sell your house in a recession.
Few of us thrive under pressure because the truth is for most a financial burden is too much to bear. Job relocation, family commitments or just wanting to change your address can create an urgency to sell your home, which can be very stressful.
More....In a recession the game changes, the rules are tougher and the playing field is muddier. The goal can sometimes seem out of range and all the players, ie buyers, sellers and lenders are stuck in the mud created by the economic storm. So what’s your next move?To sell your home in a recession you must first understand the market conditions where you live. We all know the housing market on a national level has suffered a slump but there are still pockets across the country that have managed to remain steady. Find out the condition of the property market in your area by checking the press, visiting estate agents and having a look around for Sold signs.
If the market is relatively healthy, you can gauge where to pitch your home in terms of sale price. An estate agent will be able to help you or you can look for similar properties online or in agents’ windows.
However, since we are in a recession it is probably fitting to take a bleaker outlook and the chances are you are reading this because your local housing market isn’t budging.
Before we look at the ten points which show you how to sell your house in a recession, allow us to begin with some useful hints:
Consider selling your home independent of any agents or real estate firms and yes that means doing it yourself. By cutting out their costs, which can be considerable, you will get a head start on other sellers because you are able to pitch your sale price lower than the people you are competing against. Remember, this is a competition and the winner is the one who sells their house.
Selling your house without the assistance of an estate agent needn’t be as intimidating as you first expect because there is no shortage of information online to help you. What’s more, contracts are also available online, which will allow you to fill in the information unique to your transaction. You can also be comforted from the fact that most people sold their house privately up until the last 20 years, when paying a middle man became more popular.
1. Ensure you have all your documents, the deeds of your home and your mortgage contract plus anything else relating to your home, eg builder’s guarantee.
2. Do your homework and research which other properties in your area of similar size have sold and for how much. This will enable you price your house appropriately but most importantly, competitively.
3. Once you have done your research you can ask your agent to sell your house at market rates or lower. Consider dangling a carrot by offering the estate agent a healthy commission, ie around three percent, or alternatively offer a flat fee on condition they find you a buyer.
Never sign an agreement with an agent or real estate company that you may regret should you find your own buyer.
4. Choose when you advertise carefully. Most houses tend to follow a pattern as to when they sell. This tends to be due to the day that adverts are placed in local newspapers, such as the Loot. Also, find out which newspapers are most common for property and ensure you don’t miss the deadline to place you ad.
5. Think like an ad writer when you submit your blurb. There will be hundreds of properties listed in the newspaper so be sure yours stands out. For instance you could consider paying a little extra for a colour ad but you must include eye-catching words, such as NEWLY REFURBISHED, LARGE GARDEN TOWNHOUSE.
6 Always bear in mind who you are pitching your house to, for instance if it’s to young professionals, they will want to know how close you are to the town and local transport, so promoting your garden wouldn’t be as relevant.
7. If you have a good equity level on your house, be prepared to accept a second mortgage for your equity. For more information visit our page on second mortgages.
8. Think about enticing your buyer with incentives, such as including a car, caravan, or boat as part of the deal, anything that will give you the edge over other sellers. Depending on the area, you may be able to part with season tickets to say Newcastle United or Arsenal.
9. Alternatively, be willing to accept something of value from the buyer that you could sell at a later date to add to your equity. If you would be willing to accept a car, for example, you can mention this in your advert.
10. Think of other ways to advertise your house, such as a notice board at work or by posting ads in newsagent windows. You could also advertise your home on Facebook or another social networking site and with some good fortune word of mouth will generate some enquiries.
Selling your house in 2009 is a challenge for the vast majority of homeowners but persistence, patience and innovative thinking will eventually pay off.
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