The housing market is looking good for homeowners. According to a Texas A&M Press Release in January, “The 2021 housing market will be characterized by strong demand with low inventories accompanied by solid price growth. Inventories of homes priced under $300,000 will be especially low, affecting sales in that price range. Price growth will be positive because of stable demand.”
With the economic highs and lows of this last year, it makes sense to think ahead and ponder if the economy will stabilize and whether there is a need to plan differently for the future.
You may be considering these questions:
- Is it smart to consider future economic downturns when making decisions now?
- Does it make sense to sell now and cash out?
- What if you need to sell your home quickly in an emergency in the future and use the cash equity from the sale immediately?
- How quickly can a home in the Houston area expect to sell?
Let’s look at some of the options available if you need to sell your home fast.
Ways to Sell Quickly
There are several ways to sell your home, but with the low inventories of homes that are reasonably priced, it is not likely that you will have trouble selling your home if you choose to go that route later this year. Many people are looking for homes to buy and with not many on the market, you may even potentially see buyers in bidding wars over property if it is in a good location.
Mortgage rates are also predicted to be low which is a boon when house shopping. Monetary policy implemented by the Federal Reserve is helping mortgage companies and buyers alike while low inflation expectations and slow economic growth are also a positive for mortgage rates. (1)
If you are truly desperate to sell your home, it doesn’t make sense to do a contingency sale that does not result in a quick sale of your home. You don’t want to lose a sale because you or your buyer needs more time unless there are very good reasons that your realtor agrees are favorable for the sale of your home.
Don’t make your home sale contingent on whether your offer on another home goes through. Also do not sign a contract that is contingent upon the sale of their home unless it is underway and you have been advised by realtors that the sale looks really good.
Why Use a Realtor?
It is hard to realistically look at your own house and see the problems and blemishes that need to be addressed before selling. It is also difficult to step back from your emotions about your home and price it correctly to sell quickly in your market. Often “For Sale By Owner” homes sit on the market several months longer than they should due to lack of curb appeal and high pricing. A realtor helps with both of these issues and is often the sole reason your house will sell quickly.
Realtors help to stage your home so that it appeals to the majority of buyers. They see the misplaced garbage pail in the kitchen and the dirty laundry that you never seem to stash under the sink. These kind of issues matter to potential buyers. They want to see the home as possibly theirs. If your knick knacks and family pictures are everywhere, it can keep potential buyers from feeling at home in your home.
In addition to staging your home, realtors do the “selling” process of presenting the home to the potential buyers in the best possible light. Often, they work with the buyer’s realtor to help you have an agreeable negotiation regarding closing costs, repairs, and closing dates with the buyer.
According to the National Association of Realtors, a recent survey found that selling a home on your own generally also makes you less money. A typical home sold on your own might sell for $190,000 whereas using a realtor to sell the same house might make $249,00.
3rd Party Sellers
There are many home buying services available for desperate sellers. One of the most well-known of these is OpenDoor. There are others like them. They make money by taking some of the profit that would go to you by buying your home for a lowball amount of money. They know that you are desperate to sell and use that to their advantage.
Another way to sell through a 3rd party is to go through an attorney who is connected to a 3rd party seller. Your attorney makes sure that you are getting a good deal and represents your rights during the transaction so that you make a reasonable amount of money for your home.
According to the Mortgage Bankers Association, 2.7 million homeowners are in forbearance plans. This means that as of January 2021, 5.37% of loans are waiting for forbearance to end. When that happens, we could see homeowners facing foreclosure if US policies at the time are not still shoring up homeowners with helpful mortgage policies. (2)
Potentially the homeowners going into foreclosure could increase the number of homes available on the market which could affect the economy overall. However, it is quite possible that the government would step in to prevent another housing crisis like we faced in 2008. It doesn’t look like housing prices are falling or will fall in the near future.
So if you are thinking about selling your home only because you are worried about the value going down, there doesn’t seem to be a need for that kind of preemptive behavior.
If you are in a position where you need to sell your home quickly, consult with an experienced real estate attorney. Often a knowledgeable attorney can guide you through the possible options and help you decide on the best course of action for your particular situation. An attorney specializing in real estate sees difficult financial situations involving homes and mortgages daily and will know what options are available from your lender and 3rd party buyers. Don’t wait until you are facing foreclosure to find out what is possible. Seek out good counsel today to make the most informed decisions.
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