Learn How to Sell a House Fast in Hampton Roads, VA
Wondering how to sell a house fast in Hampton Roads, VA, despite a potential housing crash? Rising interest rates and inflation have many home sellers worried about their home sale amid the state of the real estate market.
In June 2022, inflation hit a 40-year high of 9.1%. By late 2022, it had dropped to 8.2%. Similarly, interest rates hit a high of nearly seven percent by the same time. This has many prospective home sellers wondering whether they should wait to sell their homes in Hampton Roads. However, not every home seller can afford to wait.
In this post, our team at Your Home Sold Guaranteed Realty – Reeds Real Estate will share the four best tips to sell a house fast in Hampton Roads, VA, despite a potential housing crash. We’ll also discuss some signs of a crash, and whether we may be headed towards a repeat of the 2008 crash.
What Exactly Is a Housing Crash?
First, it’s important to understand what a housing crash is before you come up with a plan to sell your home during one. Many people know a housing crash is bad news for the real estate market and economy at large, but not everyone understands how they happen.
Housing crashes almost always come as a result of a housing bubble. A housing bubble is a market condition where housing prices rise extraordinarily fast as a result of increased demand coupled with low supply and low interest rates.
Other contributing factors include lower mortgage rates and credit standards, and an increase in investor speculation.
Eventually, if high prices become unstable it causes the bubble to burst, leading to a housing market crash. It’s important to note that high prices on their own don’t necessarily mean a crash is coming.
In addition, housing crashes can occur on a local scale in a particular city or state as well as on a national scale. And while housing markets are closely tied to the economy’s overall health, they may or may not indicate a recession.
2008 Housing Crash
One example of a recent market crash is the housing bubble burst in 2008, which ultimately led to the Great Recession around that same time. The housing market had been booming throughout the early 2000s, until prices hit a peak in 2006 and then started to decline.
Then, in December 2008, the Case-Shiller home price index recorded the largest price drop in its history. As a result, many homeowners found themselves unable to pay their mortgages or with homes worth less than their mortgage altogether (also known as a negative-equity position).
This left banks and lenders on the hook for the mortgages, which led to a rise in interest rates that many homeowners couldn’t afford. The resulting credit crisis led to many foreclosures and the recession that followed.
Are We Headed Towards Another Housing Crash?
The housing market has enjoyed a period of hot activity in recent years. However, current recessionary conditions and high inflation has led to a rise in interest rates, which has many homeowners wondering whether we’re headed towards a crash.
First, it’s important to distinguish a hot market from a housing bubble. Bubbles are relatively rare and are usually defined by unsustainable growth in housing prices and low mortgage rates. Hot markets, on the other hand, are much more common. They’re influenced by local market conditions and the levels of supply and demand in that particular area.
While it’s impossible to predict with 100% certainty, most real estate experts seem to agree that we’re not headed towards another housing crash. This is because demand is high, supply is still low, many home buyers are more creditworthy, and lenders have stricter lending requirements.
In fact, while home sales in June 2022 dropped by 5.4%, the median sales price was still up 13.4% from the same point last year.
High interest rates may lead to lower housing prices or an overall plateau in prices, but this doesn’t mean there will be a sharp crash like the one in 2008.
How Do iBuyers Affect the Housing Market?
Another factor to consider when considering selling a house in Hampton Roads, VA, during a housing crash is the role of iBuyers. iBuyers are companies that buy homes as-is, directly from home sellers. The seller does not need to fix the home, list and market it, or work with a realtor.
iBuyers use an algorithm to determine what to pay for the home. They make their profit by fixing up homes and selling them for a profit.
iBuyers are relatively new, but they have the power to influence the local market in a particular area. They sell these flipped homes for prices that ordinary home sellers struggle to compete with, which can affect overall prices in the area.
Ultimately, it’s best to get the opinion of a realtor about the potential effects of iBuyers on the local housing market. They can help you decide when and how to sell your home in a way that still gets you top dollar.
4 Tips to Sell a House Fast in Hampton Roads, VA, During a Housing Crash
1. Price Your Home Right
If you need to sell a house fast in Hampton Roads during a potential housing crash, it’s more important than ever to price it accurately.. You’ll likely have to price it lower than you could have before interest rates became high.
Pricing the home too high will scare away buyers looking for cheaper deals to compensate for more expensive mortgage rates. However, pricing too low means you miss out on potential profits.
Working with a realtor with in-depth knowledge of the local area is essential in a recession. They have specialized knowledge of the pattern of home prices in the area and can come up with an individualized pricing strategy in a way that iBuyers and other algorithmic methods can’t.
2. Make Your Home Move-In Ready
Another tip to sell a house fast in Hampton Roads, VA, during a housing crash is to make sure it’s move-in ready. In tough economic conditions, home buyers probably don’t have the necessary funds to renovate or repair a home.
Investing in your home to make it ready for its next owner will help it sell much faster. This includes getting a pre-inspection, making necessary repairs, hiring a professional cleaning service, and ensuring that furniture, decor, and colors are as neutral as possible. A realtor can also point out other specific things home buyers in the area are looking for.
3. Get Your Timing Right
Depending on your situation, selling a house during a housing crash can be tricky. It goes without saying that it’s better to sell a home before a recession, where lower housing prices mean you may sell for less than you initially paid.
If you can afford to wait, it may be better to do so. But if you need to sell now, make sure to work with an experienced realtor who can help you carefully consider prices in your local area. They can help you decide how long to wait before housing prices in the area fall even lower.
4. Decide if You Also Need to Buy
If you need to buy a home after selling your current one, you may not need to worry as much about timing. A home is an investment like any other– if you want the most profit, your goal should be to buy low and sell high. So if you sell your home at a lower price during a recession, this also means you’ll be able to buy one at a lower price.
And as the economy recovers and your equity grows, you’ll eventually be able to sell it at a higher price than what you originally paid.
Reeds Real Estate Can Help You Sell a House Fast in Hampton Roads, VA
If you need to sell a house fast in Hampton Roads during a tough housing market, you’ll need a local solution. At Your Home Sold Guaranteed Realty – Reeds Real Estate Team, we recognize that the current economy has many home sellers worried.
That’s why we’re proud to offer our services and unique guarantees. These guarantees set us apart from other realtors in Hampton Roads, VA.
We have specialized knowledge of the local housing market in Hampton Roads, Chesapeake, and the surrounding communities. Over the years, we’ve helped thousands of families in Virginia sell their homes fast and for top dollar, and we know we can do the same for you.
Unlike other realtors, this isn’t just an empty promise. Thanks to our Guaranteed Sale Program, we can guarantee your home will sell for a certain price and within a certain timeframe. Otherwise, Kelvin and April will purchase it themselves.
To learn more about our home seller guarantees, or for more information on working with us, give us a call at (757) 799-4824 or fill out the form below.
