Much like the economy as a whole, the real estate market is on the verge of a downward shift that is going to make selling property not as easy (or profitable) as it was just a short time ago. No one can truly predict the challenges that one may face when they try to sell a property during a recession, that much is for certain. Yet, there are a few things you can do to make sure the same goes as smoothly as possible; the primary one being to work with a real estate agent.
Here are five mistakes to avoid if you’re hoping for a smooth sale in light of the imminent recession.
1. Avoid overpricing
A few months ago, you may have been able to list your house at a higher price and have no problem selling it, but that isn’t the case in today’s economic climate. Overpricing your home could drive potential buyers away; and, when those price reductions happen (because they certainly will), people are going to wonder why. If there are too many reductions, people are going to assume there’s something terribly wrong with the property and you could get offers with a lot of contingencies or, worse yet, a low-ball offer.
2. Not understanding the market
While it’s not your responsibility to market your property (that’s what the real estate agent is for), you still need to have some kind of understanding of the local market. You’ll want to know the average time it takes for a property sells, what they’re going for, and what the interest rates are.
3. Neglecting major repairs
Even though properties were selling quickly and for more money than the property was worth a short while ago, that isn’t the case now. Now, people are getting slapped in the face with higher interest rates on top of high housing prices and they want to make sure they’re getting their money’s worth. In other words, they want the houses they’re spending hundreds of thousands of dollars on a house, it better be in good condition.
It’s in your best interest to get a pre-listing home inspection done so that you can address any repairs that need to be made. If you don’t want to make those repairs, then you can at least adjust your listing price accordingly.
4. DIY photographs
Since many people begin their house search online, so the photos of your home should be done by a professional real estate photographer. They’ll know how to capture the best aspects of your house while downplaying the not-so-great parts.
5. Bad curb appeal
You only have one chance to make a good first impression and it starts with the exterior of your home. Even if the inside of your home may be newly renovated and looks like it’s straight from the magazines, if the exterior is a mess, chances are they won’t even want to see inside.
You don’t have to pour thousands of dollars into professional landscaping. As long as the yard is neat, the exterior isn’t grimy, and it looks well-maintained, you’re golden. Of course, if you want more ways to improve the look of your home, your real estate agent will certainly be able to offer some suggestions.
Trust your agent. Trust the advice they give you because they are working in your best interest.