Should I Sell My Illinois Home In 2020?
There's a lot going on so far in 2020. With. the coronavirus pandemic, stock market crash, and interest rates at all time lows, there's a lot to talk about and consider. One question we've been hearing a lot is "should I sell my house?" If your property is in Champaign-Urbana or another Illinois area, this article will be a great resource.
2020 is still a great time to sell your house. The housing market is still almost at record highs, the job market hasn't taken a huge dip yet, and there's possibility of another recession in the near future. If you have a 2nd home or own properties you're considering selling, now would be a great time.
Why is now a good time to sell?
Let's face it, the economy has been too good for too long. Home prices have been going up the past few years at exponential rates. An age old saying says "what goes up must come down" and this has been true of the markets for as long as they have been in existence. On average, the United States experiences some sort of a recession for major drop in stock market prices about every 10 years. The last major recession started in 2007/2008, so it's been 12 years since our last recession began.
At the time of writing this article, tides have begun to turn. With the global pandemic of the COVID-19 virus, people are scared. This has been reflected in the stock market, in home prices, and buying and selling in general. Rent prices have been slashes in many areas because landlords are afraid they won't be able to lease out their units, and renters are afraid of getting into leases.
Property prices are still very high when compared with any amount of time in the last 10-20 years. Now is a great time to sell if you are worried about market conditions or have another property that you're living in. If you want to make sure you don't lose money or equity on your property during the next recession, consider selling your property in Illinois.
If you decide to sell your property now, and would like to see how much we would offer you, click here.
Should I sell with a realtor?
Selling with a realtor can be great. There are a ton of advantages when it comes to selling with a realtor, the main one being how easy it can sometimes be.
If you have a great realtor, selling your property can be a breeze. However, if you end up with a bad realtor then selling your home can often become a huge nightmare. Be sure that whoever you decide to use (if you go the 'realtor' route) is reputable and knowledgable in your particular area.
For another article that goes more in depth about selling your property with a realtor, read it here.
Alternatives to selling with a realtor
While selling with a realtor has it's upsides, many people are turning to investors in the Champaign-Urbana area to help them sell their property. While realtors only help you sell your property (for a large fee, oftentimes), investors will actually make you a cash offer to purchase your property. When we are looking at properties to buy in Champaign, Bloomington, Peoria, or another area in Illinois, we can often give an offer to the owner within 24 hours of learning about their property.
Typically, an investor will get in touch with you (or vice versa) and ask details that they need to know about your property. Once they get enough details, they'll schedule a time to come look at your property in person. If they like what they see, they can often give you an offer for your house on the spot.
I know what you're thinking. "Won't an investor offer me a lowball price that no one in their right mind would take?" The answer might surprise you. Most investors are willing to pay a fair price for your property. Let's say your property needs some work in order to get it up to sellable condition. A realtor would require you to fix certain areas of your property before they would list it for you. On the other hand, an investor would evaluate how much repairs would cost, subtract that from market value, and offer you the difference.
In most cases, people choose to sell with an investor because of how easy it is. You don't have to fix your property, there are no realtors fees, and you can often get money in hand within about 10 days.
Do you want to learn more about selling your property? Get in touch with us.
Can't I just hold onto my house and ride out the recession?
While you could hold onto your property and ride it through the recession, this is probably not the smartest plan. Here's why. If you were to sell your house now, let's say you could get $200,000 for it. That's great! If you hold it through the recession, perhaps its value would decrease by 50%. It's now worth $100,000, which is not so great. But you can keep holding onto it and in 3 years it might be back up to $200,000 in value. This is option A.
Option B is this: Your house is worth $200,000 now. You decide to sell it, and you now have $200,000 cash. The recession is in full-swing in 6 months, and property values are slashed by 50%. The property that you sold for $200,000 is now worth $100,000. You find a property just like it, and purchase it for $100,000. You still have $100,000 left over, and you have another house. The market rebounds, and the property you bought for $100,000 at the bottom of the market is now worth $200,000. You have that property, PLUS the $100,000 left over.
I think it's easy to see that selling your house now, before the recession hits, is the smartest choice.