2023 is expected to be a very hard year for us all. According to many financial market experts, we’re likely heading into a recession which can take a huge hit to the housing market. Many are asking if 2023 will be a good time to sell their homes – many with varying answers.
The short answer to the question is no, but it depends.
Difficulty Selling A Property On The Traditional Market
Some properties may be difficult to sell on the traditional market due to factors such as location, condition, or market conditions (such as the recession in 2023).
How To Sell Your California Home In 2023
You have two options to sell your home in 2023 during a recession:
- Traditional Real Estate
- Cash Home Buyers (Investors)
Selling Your Home Through The Traditional Real Estate Market In 2023
First, there is no real advantage to selling your home on the traditional real estate market during a recession aside from the obvious increase in total offer value.
However, this is a double edged sword.
Let’s cover the advantages and disadvantages of selling your California home in 2023 during a recession.
Advantages
Increased offer values
The offers may be higher than cash home buyers and investors.
Disadvantages
Reduced demand for housing
During a recession, many people may not have the financial means to purchase a home, which can reduce demand and make it harder to sell a property.
Increased competition
As more homeowners are looking to sell their properties during a recession, there may be more properties available on the market, which can increase competition and make it harder to sell a property.
Reduced property values
Property values may decrease due to a variety of factors, such as a decrease in income, job loss, and reduced demand for housing. This can make it harder for homeowners to sell their property for the price they want.
Difficulty getting financing
Banks and other lending institutions may be more cautious about approving mortgages, which can make it harder for buyers to finance a home purchase.
Difficulty finding a real estate agent
Many real estate agents may be struggling to find clients and make a living, which can make it harder to find a good agent to help sell a property.
Difficulty in getting a good appraisal
Home appraisers may have a harder time finding comparable sales to use as a basis for their appraisals, which can make it harder to get a good appraisal and sell a property.
Difficulty in making the necessary repairs or renovations
Homeowners may not have the financial means to make the necessary repairs or renovations to their property in order to make it more appealing to buyers, which can make it harder to sell.
Difficulty in paying for closing costs
Many homeowners may not have the financial means to pay for closing costs, which can make it harder to complete a sale.
Difficulty in paying for marketing
Homeowners may not have the financial means to pay for marketing, which can make it harder to get their property noticed by potential buyers.
Difficulty in paying for staging
Homeowners may not have the financial means to pay for staging, which can make it harder to showcase their property to potential buyers in the best light.
Selling Your California Home To Cash Home Buyers (Investors)
Selling your California home to a cash house buyer / investor might be the best idea if you need to sell quickly for a variety of reasons.
The obvious benefit to selling your home to investors / cash home buyers is that you’re more than likely always guaranteed quick and easy cash for home – regardless of a market situation such as a recession. This is because these are businesses that tend to stay profitable year-round, even in recessions by simply buying houses and turning them around for profits at a better time, typically through patience.
Reasons to Consider Selling Your California Home In 2023 to Cash Investors
Financial Difficulties Or Inability To Make Mortgage Payments
Many homeowners may find themselves in a difficult financial situation, such as job loss or unexpected expenses, that makes it difficult for them to continue making mortgage payments. In these cases, they may choose to sell their property in order to avoid foreclosure and potentially receive a lump sum of cash.
Inheriting A Property They Do Not Want Or Need
When someone inherits a property, they may not have the desire or means to take on the responsibility of owning and maintaining it. In these cases, they may choose to sell the property in order to quickly and easily dispose of it.
Job Loss Or Relocation
When someone loses their job or has to relocate for work, they may not be able to maintain their current property. In these cases, they may choose to sell their property in order to quickly and easily dispose of it. With a future recession it’s likely that some may lose their jobs or be forced to relocate for a new position to avoid termination.
Divorce Or Separation
When a couple gets divorced or separated, they may need to sell their property in order to divide assets or move on with their lives. In these cases, they may choose to sell their property to get rid of it.
Need To Liquidate Assets Quickly
Some homeowners may need to liquidate assets quickly in order to pay off debt, invest in another property, or to handle other financial obligations. Selling their property can provide them with a quick cash sale.
Property Damage Or Repairs Needed
Some properties may require significant repairs or renovations in order to be habitable or desirable to potential buyers. Homeowners may not have the time, money, or inclination to make these repairs, so they may choose to sell their property to investors such as us (Osborne Homes), or fixer-uppers.
Tired Of Being A Landlord
Being a landlord can be stressful, time-consuming, and expensive. With a recession, some tenants may not be able to make rent all together which can harm your cash flow and it may just be more worthwhile to sell and offload the responsibility.
Avoiding Foreclosure
When homeowners fall behind on mortgage payments, they may be at risk of foreclosure. The best thing to do during this time is to sell your home and pay off the mortgage. Many homeowners might consider refinancing however, during a recession rates can be locked and some lenders might not be offering the best rates or even offer a new mortgage period.
Expensive Property Taxes
Some homeowners may find that the property taxes on their home are too high for them to afford. This goes hand and hand with a recession, the extra cost of property taxes can just add up quickly which makes downsizing a better option.
Illness Or Disability
When homeowners become ill or disabled, they may not be able to maintain their property or make mortgage payments. In these events, you should strongly consider selling your home.
Retirement And Downsizing
As homeowners approach retirement, they may choose to sell their property to downsize or move all together. During a market downturn, there may be some areas to consider over others that might make more sense for those retiring – such as retirement communities, condos, etc.
Bankruptcy Or Financial Hardship
When homeowners are facing bankruptcy or other financial hardships, they may have no choice but to sell their homes. Bankruptcy is a common side effect from long-term recessions and market downturns do not make it any easier to avoid.
Neighborhood Or Area Is Declining
When a neighborhood or area is declining, homeowners may find that their property is worth less and that it’s harder to sell on the traditional market. Selling the property may just be the easiest way to deal with the declination of the neighborhood. It’s an easy way out but not the most viable option mid-recession.
Property Is Vacant Or Unoccupied
Some homeowners may have a property that is vacant or unoccupied for various reasons, such as moving out of state or renting it out. These properties may become a burden for the homeowner to maintain, so they may choose to sell their property. This can be beneficial for the homeowner, as they may avoid the costs of maintaining an empty property and the risks of vandalism or other issues. While facing a recession it’s important to have that extra income as stability so selling is strongly encouraged.
Sell Your California Home To Osborne Homes!
Regardless of the situation you’re facing, if you live in California we want to buy your home for cash.
Our 3 step process makes the house selling process easy:
- Reach out to us
- On-site appointment
- Cash offer & close!
We can close as soon as a week whereas the traditional market can take 30-90 days.
Sell Your California House Today!
