Are you a home seller who is nervous about selling a house during a housing crash in Las Vegas?
If so, you aren’t alone. Many home sellers are in the same position of wondering whether a housing crash is inevitable. With inflation hitting an all-time high in 2022 homeowners are becoming nervous about an economic turndown, similar to the housing crash of 2008.
However, for home sellers who want or need to sell their home in a down market, there are several steps you can take to meet your real estate goals despite whether or not you are selling a house during a housing crash in Las Vegas.
We Can Help You Sell a Home in Las Vegas
When the market conditions are shaky, you need a name you can trust to help you sell your home. Thankfully, you can receive personal attention from one of our expert realtors who has intimate knowledge of the Las Vegas housing market. Our years of experience in the real estate industry, specifically in Las Vegas, allows us to get a step ahead of competing home sellers and help you find a motivated homebuyer regardless of the state of the market.
At Your Home Sold Guaranteed - Couture Realty Team we help recession-proof your home sale is by offering a number of exclusive Guarantees to give you a sense of security and peace of mind when making your home sale. Other agents may promise the moon and stars but without Guarantees like ours to back up their claims, those promises lose their weight.
Thanks to our Guaranteed Sales Program, you can be confident that you will receive top dollar, fast for your home. In fact, we guarantee that we will sell your home for an agreed upon price within a certain timeframe. If we fail to do so, we will buy it ourselves! That’s our promise.
To further highlight how we can help sell your home during a housing crash, below we explore what a housing crash is, how likely a housing crash is and how you can better prepare your home for sale despite the market conditions.
What is a Housing Market Crash?
A housing bubble, also known as a real estate bubble, is a market condition where home prices and value rise sharply. This spike is caused by a combination of increase in demand, low supply and below-average interest rates. Sometimes, home prices can also rise due to artificial reasons such as lower mortgage rates and credit standards, as well as an increase in investor speculation.
A housing bubble is almost always a predecessor to a housing market crash – the point in time where the market becomes so unstable that the housing bubble bursts. This means that prices for homes drop drastically in a short period of time. Post-bubble crashes are usually driven by a rise in interest rates which lead to lower demand. The combination of rising interest rates and lower demand causes the price of homes to drop.
To further darken a housing market crash, the conditions can cause a recession. The opposite is also true – a recession can lead to a housing market crash. Regardless, the overall health of the economy is closely tied to the health of the real estate market.
2008 Housing Bubble
The 2008 housing bubble and subsequent Great Recession had a profound impact on homeowners. Many were unable to pay their mortgage. Some even found themselves in a negative-equity position, where their home was worth less than their mortgage. This led to a rise in interest rates which were prohibitively expensive for many homeowners.
But how did this happen?
In short, the early 2000s saw the housing market booming with a housing price peak in 2006. Following that year, prices began to decline culminating in the largest price drop in history in December 2008.
So are we about to see a repeat of 2008? What can we learn from the past housing market crash and how should homeowners prepare for the potential of a repeat crash?
Are We Headed Towards a Housing Crash?
Rising interest rates and other recessionary conditions have many homeowners worried about a potential housing market crash.
But, there’s a difference between a hot market and a real estate bubble. While it’s true that there are similarities between the two, the distinguishing characteristics are that bubbles are rare and caused by unsustainable growth in housing prices and low mortgage rates. Hot markets are more common and are caused by local market conditions and the levels of supply and demand in that particular area.
On a national level house prices have been declining, national sales are down and there have been high interest rates since mid-2022. However, experts doubt that a housing crash like the one in 2008 will occur. This is because of, again, the close relationship between the overall health of the economy and the real estate market.
Statistics like unemployment and supply and demand also influence the market and, in 2023, there is growth in some areas and decline in others. Further, while home prices have been declining, they are still higher than average. Thus it is premature to predict that a housing market crash will occur because not all necessary market conditions are present.
What Role Do iBuyers Play in the Housing Market?
Another potential influencing factor in the housing market is the role of iBuyers. An iBuyer, or “instant buyer”, is a real estate company that buys and sells homes quickly. They buy homes “as-is” directly from home sellers, eliminating the need for the home seller to list or market their home, or work with a realtor. The company then renovates the home and flips it for a profit.
The price the iBuyer pays for the home is determined by an algorithm which may undercut the price that other home sellers are able to offer for their own homes. These low price outliers can affect the overall prices in the area.
Regardless of iBuyers, ourexperienced realtors can help you get top dollar, fast for your home in 2023.
What to Know to Prepare for Selling a House During a Housing Crash in Las Vegas
Selling a house during a housing crash in Las Vegas can be made easier by following these steps:
- Price your home right
- Make your home move-in ready
- Get the timing right
- Decide if you also need to buy
As always, a realtor is best able to evaluate your home and point out where your home’s strengths lie and how to get the best price fast.
Price Your Home Right
Because of the fluctuating market, it’s important now more than ever to make sure you have an accurate price for your home.
When pricing your home, it’s helpful to think of Goldilocks. If you price your home too high, it will scare away potential homebuyers who can get a similar house in the same area for less. If you price it too low, you are missing out on potential profits. Like Goldilocks, you want your price to be “just right”.
Finding that “just right” price is easy with an expert realtor. We know the local real estate market and have specialized knowledge of how to come up with a customized pricing strategy, unlike iBuyers who rely on algorithms for the same information.
Make Your Home Move-In Ready
Getting and keeping your home in showroom condition will go a long way in helping you to get the highest possible price for your home, in the shortest amount of time.
When there is an economic downturn, homebuyers are less likely to have the extra money to put into repairs. Not wanting a fixer-upper, they may pass on a home that requires significant renovations. That includes costly cosmetic makeovers like painting, tile and flooring.
To make your home more attractive to potential homebuyers in competitive markets, recreate your interiors with a neutral palette. Also consider updating your appliances and other fixtures so that they are of modern design. Lastly, don’t neglect the outside of your home – power washing and landscaping can greatly improve the curb appeal.
Get the Timing Right
It’s always best to sell your home before a recession hits. However, when you work with an experienced realtor they will be able to successfully navigate any market condition.
Decide if You Also Need to Buy
Simultaneously selling and buying a home at this time allows you to buy low and sell high, eventually being able to sell the home for more than you paid.
Sell a Home in a Down Market Easily with Ken Couture
Ultimately, an expert realtor like the ones you’ll find at Your Home Sold Guaranteed - Couture Realty Team will be able to give you the best time to sell your home. We understand the local and national market conditions and know how to sell your home fast and for top dollar.