Only you can ultimately decide when to buy or sell a home. But no doubt about it, there are certain times, like when the economy is less stable and the market is uncertain, that, undoubtedly, you should analyze your plans and long-term goals more carefully.
Here Are A Few Key Questions to Ask Yourself if You’re Looking to Buy in an Uneven Market:
- Are you employed and is work steady? If changes in the economy or a potential recession could affect your position and/or your company’s ability to pay you, moving right now might not be… well… your best move.
- How many months of living expenses do you have on hand? As long as a real estate down-payment doesn’t impact your ability to fall back on your savings accounts in a poor economy, you’re still a good candidate for house hunting.
- How long do you plan to be in your next location? If this is a long-term move for you, this is potentially a very good time to find not only a good value on a purchase price but on a lending rate as well.
Sellers should think of these possible issues:
- Where are you headed when you sell? If you’re looking to buy after selling your home, ask yourself the above questions. You’ll want to have money in reserve. Especially if you end up selling your current home for less than you expected.
- Are you willing and able to reduce the price of your home? You never know what the market is really like until you try. And you don’t know if it might not get worse. But if you’re someone who jumps at the first offer—and the offer isn’t great—are you prepared to say no? Or to negotiate a lower price?
- Are you willing to take your house off the market? Six months from now if your house hasn’t sold, would you rather take your house off the market than letting it get stale or give the appearance of being less valuable? (You might consider negotiating a shorter up-front contract with your real estate agent for this reason.)
Are you in the Right Space?
One other question for anyone dipping their foot into the real estate transaction waters: are you in a space emotionally and mentally to handle the added pressures and workload of buying or selling a home? Maybe a “household project” of this magnitude is exactly what you need right now!
With all the economic uncertainty we’re facing during COVID-19, a long-term economic downturn is possible and some experts say, probable. Only time will tell how long it could last. Since you need to make this very big, very important life decision now, just be sure to do your research and ask yourself the big questions first. And as always, make sure you’re basing your real estate decisions on finances and not emotions.
When it comes time to close on your sale, keep Clean Title, LLC, in mind. We’re researching the past to protect your future!
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