Selling a home requires the right preparation, right pricing, and marketing to help get it sold. It is especially difficult to sell during times of economic unrest. Right now with COVID-related unemployment and a decrease in income has led many homeowners to a very difficult time in the housing market. Many people have decided to pull their homes off the market for the time being to wait out the pandemic. Those who have remained in the market have seen fewer and fewer buyers making it extremely difficult to sell. This blog explores what homeowners can do when a home is not selling.
Try again later
Press pause and wait out some of the current economic and social issues that are affecting Kentucky house sales. The COVID-19 pandemic may just be the wrong time to attempt to sell your house. Many home buyers are concerned about the risks of making large financial investments, such as buying a home, during this time. Some potential buyers may currently be out of work and uncertain if they will regain their employment once the restrictions and lockdowns are lifted, thus unable to buy a home right now. With fewer buyers in the market, it is more difficult to sell your home. Especially if there is anything that needs to be repaired. It might be in your best interest to stay where you are for now, if possible, and wait until the market improves.
STAY IN THE HOME
If all else fails, keep the house. If staying in the same house may make the most sense, do that. Why go into debt with a negative cash flow renting a home or selling an existing home to buy a bigger or different house which will only add more debt? A home is an investment, but do not overplay your hand by going after something you can not afford right now.
Going overboard and stretching one’s budget to buy a home can result in being in a house poor situation where you do not have enough money for the regular upkeep of the home. As the home degrades over time and is not repaired, the value also goes down and decreases quite rapidly. Instead, invest where you are and see your money return later on when the housing market is in a better state.
Reduce the Price
Putting up your home for a reduced price can be a very effective way to sell your home. If you find yourself with a property you simply can’t afford to keep or is about to go into foreclosure, cut your losses by offering bottom-line prices. Sell the house for enough money to keep you from going into debt, ruining your credit, or hurting your financial health and move on. Sometimes it is the best option available to you.
Reducing the price of a house that will not sell is not just an option during COVID-19, but also during major holidays or summer break when fewer houses are selling. If you are getting little interest in your home, consider reducing the price and trying again.
RENT THE HOUSE OUT INSTEAD
Make the rent rate to cover the mortgage, property taxes, and homeowner’s insurance. You will also need to ensure the renters tell their insurance provider that they want insurance to cover the new situation with the property. Rates will be more expensive than when you occupied the home. However, failure to disclose a home as a rental property could result in a denial of an insurance claim or complete cancellation of the policy.
Do not rent out the home for less than the amount to cover the mortgage, insurance, and taxes; otherwise, they will be in a money-losing venture. Any experienced real estate investor will tell you all rental properties must have positive cash flow otherwise the investment is not worth it. If the cash flow is not positive you are better off reducing the price of the home and selling it now.
Homes need continual maintenance and having to pay out of one’s pocket for major home expenses while a renter is in the home will only further affect your financial health. HVAC, roof, major plumbing, and other repairs can easily cost thousands of dollars for repairs and maintenance. It makes no sense as an investment to keep a home you can not get a positive cash flow from. Homeowners need to be able to make money from the rental AND save money at the same time to build up a reserve fund for any future unexpected expenses.
Sell to a Home Investor
Home investors are a quick and easy way to sell your home. Make sure to understand what your house is worth and feel free to get a second quote. For your first assessment and home investor offer call Kentucky Sell Now at 502.610 0070. Offers are made in cash, sometimes on the same day. Closing costs and other fees associated with selling a house should always be covered by the home investor. They will not pay top dollar for your home, however, they will sometimes surpass your bottom line sale, especially since with a home investor you will not be responsible for any repairs.
This is a quick and easy way to sell a house, even in this current housing market. Kentucky Sell Now is here to help you on your way to a better house, financial health, and stress-free selling experience.
Keep your options open. Now might not be the right time to sell or you may need to (LINK) contact a qualified buyer. Homes take continuous upkeep to accrue value over time. If you have the ability to maintain your investment, then selling the house is the right choice. If you are we encourage you to invest in your home.
Kentucky Sell Now is currently assessing and purchasing homes in both Kentucky and Southern Indiana. Call today for a free offer.