There are some who believe we are now in a recession, there are some who think a recession is imminent, and those who say it will never happen. The truth is that we don’t know where the economy is going. Even though it might not be the best time, people will still need to buy and sell real estate.
Here are some things you can do to get ready to sell when a recession is coming, if you need to sell and look for a new house.
1. Hire a Top-Rated Real Estate Agent
The best way to get ready to sell is to find a real estate agent who knows a lot about the market and has a lot of experience navigating an unpredictable market. Your real estate agent will know how to market your home and set it up so that buyers will want to buy it. If you want to work with an agent while things are going smoothly, you should definitely work with one during the most uncertain circumstances.
2. Keep an Eye On Your Personal Finances
There are a lot of different reasons why somebody might need to sell their property, but if you have risky assets or limited cash, now is the time to get your affairs in order. If you are an investor, you should rethink your strategy and keep a close eye on both your income and expenditures.
In addition, investigate your typical spending habits to identify areas in which you might be able to cut costs if that becomes required. If the majority of your money is being eaten up by frivolous spending, it’s time to consider where you can make some sacrifices and work on becoming more frugal. Yes, it will be difficult, particularly if you’ve grown accustomed to living in a particular way due to previous experiences. If you reduce your spending now, though, you will be in a better financial position whenever the economy begins to improve.
3. Pay Down High-Interest Debt ASAP
As a result of the increase in the national average rate of interest, you should make it a priority to pay off any high-interest debt that you presently have as quickly as your financial situation will permit. This includes any outstanding balances on your credit cards or personal loans. Overextending oneself is risky business, especially when interest rates are on the rise and your credit line’s interest rate is changeable.
4. Look for alternative ways to increase income
There is no assurance that your house in St. Petersburg will sell fast or for the price that you have listed it for. In spite of how bad it is, in order to produce revenue, you need to prepare ahead. And if prices keep going up, it implies that the new property you buy will have a greater rate of interest attached to it. Do you see where I’m heading with this?
There is no assurance that your house will sell fast or for the price you list it at on the market. In spite of how bad it is, in order to produce revenue, you need to prepare ahead. And if prices keep going up, it implies that the new property you buy will have a greater rate of interest attached to it. Do you see where I’m heading with this?
You may consider freelancing, picking up more shifts, or looking for employment. If you are talented in a skill and enjoy engaging in it, one way to supplement your income is to start selling the items you make on the internet. Consider taking some more classes to increase the breadth of your skill set if you have any discretionary funds left over. You need to work on making yourself a more marketable candidate if you want to climb the corporate ladder at your current employment.
Although selling your property during a recession may not be the best time to do so, you still need to get as much ready as you can. Even if we don’t enter a full-blown recession like we experienced in 2008, it’s still important to be as prepared as possible. It’s always better to err on the side of caution than to have to apologize, right?