Are we truly in a recession? Well, it depends on who you ask – some say yes while others say it’s imminent. The fact is that we don’t know for certain where the economy is headed. Despite the uncertainties, folks will need to acquire and sell real estate, even if the timing isn’t optimal.
If you find yourself in a situation where you need to sell and locate a new house, here are a few tips to help you prepare to sell during a recession.
1. Work with a Realtor
Finding a real estate agent who understands the market and is experienced in navigating an unstable real estate market is the best approach to prepare to sell. Your realtor will understand how to advertise and stage your house to appeal to interested buyers. You want to work with an Realtor in the best of circumstances, therefore you should surely work with an agent in the worst of circumstances..
2. Review Your Finance and Create a Budget
There are several reasons why someone may need to sell property, but for those who own dangerous assets or have stretched their funds thin, now is the time to get your finances in order. Rethink your investing approach and plan appropriately if you are an investor.
Examine your spending patterns to discover where you might reduce back if necessary. If your discretionary spending consumes the majority of your income, it may be time to cut down and attempt to be more economical. To be sure, it will be difficult, especially if you have become accustomed to living a certain manner. However, if you tighten your belt now, you will be better off when the economy recovers.
3. Pay Off Highest-Interest Debt, First
Interest rates are increasing, so if you have high-interest debt, such as credit cards or personal loans, you should endeavor to pay it off as quickly as your budget allows. You don’t want to strain yourself too thin, but with rising interest rates, you might find yourself drowning in debt owing to variable interest rate credit lines.
4. Look Other Ways to Generate Income
Although the unemployment rate is low, there are still ways to supplement your income. You can work extra shifts, sign up for gig work on the many platforms available, or do some freelance work. If you’re handy and love producing things, you may start selling them online to supplement your income. If you have any spare money, try taking some classes to broaden your skill set. If you want to advance in your career, you must first establish yourself as a competitive candidate.
Selling your home when the economy is in turmoil is not ideal, but you must prepare as best you can. Even if we do not enter a full-fledged recession and experience a housing market collapse like we had in 2008, you can never be too ready for whatever lies ahead.
