When America’s housing bubble burst in 2006, it triggered a worldwide financial crisis and a recession, the economic ripples of which can still be felt today. A struggling economy resulted in less homeowners with and fewer opportunities for full-time employment. This made it even more challenging for homeowners to keep up with mortgage payments, resulting in a record number of foreclosures. With more houses available on the market than buyers, homeowners were forced to dramatically drop their asking price to sell their homes.
Fast forward to 2020 and most Americans feel that another crash is on the horizon. Home prices have steadily risen over the last decade to the point that there are considerably less affordable options — not a good sign. As the number of housing sales decreases and mortgage rates increase, many experts suggest another crash could occur within the next five years, if not sooner. Naturally, if the market takes a significant dip in 2020 or soon after, many homeowners will be trying to get deals that involve cash for homes in Tampa. However, as you may know, it’s best to sell before the market dips.
If the real estate market takes a dip in 2020, here are five questions every homeowner should ask themselves. The answer to each of these questions could determine whether or not you decide to sell your home now in order to avoid any issues in the future.
1) Do you live in the house?
The majority of homes that went under during the last recession were not the homeowner’s primary home. If you inherited an unwanted home or bought a second home as an investment, consider selling now and investing that money elsewhere. If you don’t live in the home, chances are you won’t miss it.
2) What’s your financial outlook?
Do you have a fixed-rate mortgage that you can comfortably pay in the foreseeable future? Could you continue to meet these payments, even if your annual income takes a hit? Are there any looming bills you’ll need to pay off in the next few years? Make sure you have your finances in order now to ensure you’re protected in the near future.
3) Do you live in a great neighborhood?
When the market takes a dip, you’ll have a much better chance to sell your home if it’s in a neighborhood that will hold its value. If you own a home in a less desirable area of town, you may want to speak with a real estate investor who says, “we buy homes for cash in Tampa!”
4) Is the home worth keeping?
Although it may be challenging to assess the true value of your own home, homeowners need to consider whether or not their homes will truly stand out if the market experiences a significant downturn. For example, if you own a fairly new home in good condition with several bedrooms and at least two bathrooms, a buyer will be more prone to invest. However, if you own an older home that can only house a small family, it may be time to consider selling.
5) Do you own other assets?
If your home is your one, true asset, you may want to diversify your portfolio by selling your home and investing in stocks, bonds, and other business ventures. You can always buy a smaller home with the profit and diversify at the same time.
At Ethical Home Buyers, we are real estate investors that partner with homeowners interested in selling their home fast. If you fit our home buying criteria, you can receive a fair, all-cash offer in as little as 24 hours. The final decision to sell is always up to you. If you decide to sell, you can walk away with cash in your pocket in a week or less. Selling your home can really be this easy!
Disclaimer: This website is not a substitute for legal advice. If you have a serious legal, tax, or other issue requiring professional advice, please consult with an attorney or CPA.