When it Makes Sense to Sell During an Economic Downturn
It’s a painful subject but one that can’t be ignored: recession. When the economy slows down, for whatever reason, including a global pandemic, millions suffer. Many people lose their jobs and many may be forced to make difficult decisions.
One of those decisions may be whether it’s the right time to sell your home. If you’re experiencing financial difficulty due to an economic contraction, here are some factors to consider when deciding whether it makes sense to put your house on the market:
Consider your work situation. Are you unemployed or underemployed? Consider the length of time you expect your current job situation to endure. If you are concerned your income may be negatively impacted for a significant period of time, you might want to consider selling your home.
Assuming your employment status is uncertain, do you have other sources of income that can sustain you through an economic downturn? If you do not, selling your home may be a way to ease your financial burden.
Do you have a lot of equity in your home?
If you have a considerable amount of equity built up in your home, it might make sense to sell and get some of that equity out to help with monthly bills. You may be able to reinvest in a smaller, less-expensive property with a smaller monthly obligation.
Are home prices strong in your area?
Sometimes, during a recession, home prices remain strong, while in other instances, home values take a hit. If the value of your home has decreased significantly, you might want to reconsider selling. It might make more sense to refinance to try to reduce your payments.
Where will you live post-sale?
Will you find a home to rent for a bit while you get back on your feet? Will you purchase a less-expensive home with a mortgage at a lower interest rate? Consider your housing options before deciding whether you should list your home.
Get help before deciding
If you’re considering selling your home while times are lean, the best thing you can do is get professional advice. Consult a financial advisor and also talk to a qualified real estate professional who can help you assess your personal situation in the context of the bigger picture. At Swanson Realty, we have many experts on staff who will be happy to help you decide whether it’s a good time to sell your home.