This ARTICLE On Selling House In Bad Market And During Non-Peak Season Was PUBLISHED On November 23rd, 2019
The housing market and economy is booming in the U.S.
- Home prices are increasing
- In general, there is more demand for homes versus inventory
- HUD and the FHFA both have increased the maximum loan limits on FHA and Conventional loans for the past three years
- 2019 FHA Loan Limits is now at $314,827
- 2019 Conventional Loan Limits is now at $314,827
- President Trump recently signed a bill eliminating the maximum VA Loan Limit
- VA loans no longer have a maximum cap on VA Loan Limit
- However, not every housing market is booming
- There are a handful of high property tax states like Illinois and New York where home prices are dropping while property taxes are going up
- New York and a handful of high tax states are experiencing a declining housing market due to high property taxes
- In general, high property taxes drive home values lower
- For example, in DuPage County Illinois, property values have dropped 24 percent while property taxes increased 7 percent since the 2008 housing crash
- Selling house in bad market can be challenging
In this article, we will cover Selling House In Bad Market.
Selling House In Bad Market Can Be Challenging
Selling House In Bad Market can be challenging.
- Many still remember the 2008 housing crash and real estate meltdown
- Many homeowners lost most and/or all of the equity in their homes
- Others had homes where the mortgage loan balance was higher than the value of their homes
- Underwater mortgages is when the mortgage balance is higher than the value of the home, thus having negative equity
Whether a homeowner is living in a state where the housing market is bad and/or the economy takes a hit and negatively affects the housing market, there are tips homeowners should explore and possibly take.
Challenges In Selling House In Bad Market
Many homeowners face various challenges in selling house in bad market.
- However, when selling house in bad market, it brings more benefits for homebuyers
- Home buyers have more inventory and choices when buying during a bad housing market
- When home sellers are forced to move and sell their homes in a bad housing market, they often do not have many options
- One of the negatives for sellers is they may not get prime dollar for their home
- They may be forced to accept a lower offer due to more homes in the market than demand
In the following paragraphs, we will list tips for sellers in selling house in bad market.
Choosing An Experienced Knowledgable Real Estate Agent
Marketing is key when selling a home.
- Choosing the right real estate agent who knows the area is key in selling your home fast
- The realtor will guide home sellers in setting the right price
- The agent will give sellers advice on how to window dress the property
- An experienced full time real estate agent will do a market analysis on the recent sales in the area and the current inventory of homes in the market
- Not all realtors have the same marketing budget and strategies
Top producers will invest their own money in aggressively marketing your home. They will network with other local agents to sell your home quickly.
Pricing The Home During A Bad Housing Market
Pricing your home during a sluggish real estate market is key.
- Overpriced homes can sit for many months
- Once sellers lower the listing pricing price on an overpriced home, it is taken negatively by potential buyers
- Home buyers would rather put an offer on a home that is priced properly instead of trying to negotiate with an overpriced home
- Aggressive and serious home buyers will pull the trigger more quickly on homes that are properly priced and recently listed on the market
An experienced realtors who knows the local market will help sellers to price the home correctly for a quick offer.
Marketing Plan When Selling Home During Bad Market
During a bad housing market, many homes sell the minute the home hits the MLS.
- In many states like Florida, Texas, Tennessee, listing agents will get calls the minute the home hits the MLS
- However, other states like New York, listing agents need to start an aggressive marketing plan
- Both the real estate and homeowner should go over a custom marketing plan for the listed home
- The realtor may need to go outside the community to seek a larger broad audience of potential buyers
- There are countless real estate websites like Zillow, Realtor.com, and others realtors may want to market
- Custom high end homes should be marketed to niche publications
- This may include for car lovers for homes with a lot of garage space or to doctors, lawyers, and business executives
Ranch homes and/or homes with one level should be marketed aggressively to seniors, the disabled, or those who are limited with the use of stairs.
Other Marketing Plans When Listing Your Home
Open Houses is one of the most favorite marketing strategies for real estate agents. Open Houses is an invitation for potential home buyers and fellow real estate agents. You may not get the home buyer at an open house, but a real estate agent may have the perfect buyer for the home. The more traffic your home has, the better the chance of you getting an offer. Marketing is key when selling home during bad housing market.