A looming recession is scary no matter what, but for those looking to buy or sell their home, it can be extremely difficult. Whether you’re unhappy with your current home or need to sell for other reasons, it’s still possible to successfully sell your home during a recession.
For the last two years, the housing boom has allowed a lot of realtors to see success with minimal effort. Now that the market is turning, you need a realtor who is experienced and willing to put in the work to properly market your home and sell it for what it’s worth.
We’re returning to a market where skill, expertise and experience matter more than ever. So, when selling or buying in a recession, working with the right realtor is the number one way to do so effectively.
When looking for a realtor to represent you as a buyer or seller (or both), you should:
- Get referrals from friends, family and neighbours who have recently bought or sold in your area
- Use Google Reviews to verify referrals
- Speak with realtors in person or on the phone to get a sense of who they are and their expertise
- Ask potential realtors for their referrals
If you’re putting off selling your home because of the economic uncertainty we’re experiencing, take a moment to reflect on why you’re considering selling in the first place. Is your current home no longer working for you and your family? Are you looking to downsize? Is the sale of your home an opportunity for profit for you?
Whatever the reason, it’s worth noting that selling your home is still a viable option in the current market. You may experience a more extended stay on the market and slightly lower offers than what you would have seen a few months ago, but you can still see a profit depending on when you purchased your home and how much of your mortgage you’ve repaid.
Sales prices are still up year-over-year, which means if you purchased your home as recently as 1 year ago, you could still make a profit. If you’ve lived in your home for years, you’ve grown your equity and will see a profit.
Next, you need to consider if you’re looking to buy simultaneously. Buying a home in this market is complicated because prices and interest rates are shifting, meaning that although you could purchase a home at a lower price, your monthly mortgage payments could be higher. Keeping this in mind, you need to determine if taking on a new mortgage & moving is the best choice for you.
Our 3 Tips For Sellers:
- Don’t compare prices from months prior; those won’t accurately reflect what you can expect in today’s market.
- Don’t stress if your home is on the market for 30+ days; homes sit longer in this market.
- Ensure you’re working with a realtor who has updated digital marketing strategies to list your home & reach its intended audience properly.
Our 3 Tips for Buyers:
- Get your pre-approval and interest rate locked in early to avoid the effects of rising rates. You can typically hold a pre-approval for 90 to 120 days.
- Keep an eye out for motivated sellers. These people have had their homes on the market for longer than the average or have extenuating circumstances forcing them to sell, etc. More often than not, you can negotiate great deals with motivated buyers.
- Don’t be afraid to walk away. You don’t have to offer on the first property you like because competition in this market isn’t as hot. You can afford to take your time to make decisions and move on from properties that don’t meet your needs.