Should I Sell My House During A Recession

Should I sell my house during a recession? Well, there's a lot to say about this and there's a lot of very misinformation and odd information. I always say it's the good, the bad, and the interesting out there on the bathroom wall called the internet. So should you sell your house in a recession? Let's go through three points to help you evaluate and decide. Number one is evaluate your current housing market, not the national market, your current market, down to your zip code. Number two, identify the opportunities and the risks during this recession. What do you all see that's going on in your market, in your state, again, down to your zip code. And number three, deciding whether to sell or hold. I have very specific things I'm going to talk to you about as we head to the end of the video, but I think I want to start as we move into number one, evaluating the current housing market. I think you've got to be really clear about the title of this video. Is this sell your house? This doesn't say, should I be in real estate during a recession? So personally, I think there's opportunity everywhere during a recession and there are so many note opportunities in this recession because of the absolute, like heightening in 2000, you know, 20, 21, 22. I mean, insane housing prices when, you know, the West coast was moving in, the East coast is moving in. People are, you know, geographically relocating because of the pandemic. Fascinating what got blown up and now that's settled back out. So many people are upside down. So should you be in real estate? That's up to you, but that's not what this is about. This is about your house. Personally, do you sell your house in a recession of this kind? So how do you evaluate your current market? So you have to understand what's going on in your market, right? Is, there's a lot of selling going on. What's also on the converse of that, if you actually do sell, are you going to buy again or are you going to rent? Rent is out of control in a lot of markets. So there are some markets where rent actually has not moved a lot. And there's some markets that rent has doubled. So are you really going to move out of selling your house to then go into a double rent situation? You've got to really look at the housing prices, the rent prices. You got to look and evaluate what are your alternatives versus just staying and waiting this out a little bit. You also have to look at the recession indicators of inflation and interest rates. And if you actually did sell, right, which means a buyer is going to come in at a higher interest rate. That's not your problem, but you will have one if you want to go buy again, which I've had people sell. Clients of mine have sold, not thinking through, now I'm going to go into a new property and I'm going in at interest rates that are doubled what I was paying. And again, do you do that fixed? Do you do that variable? Given the volatility of the market, all of those considerations have to be in hand, which is why our teams are phenomenal to help you evaluate. We know how to run spreadsheets and numbers and cashflow analysis to help you decide based on real numbers, not emotion. And a lot of you, you make decisions on emotions, not real numbers, which is why you need a team around you like I have had around me my whole life. Number two, so you have to identify the opportunities and the risks in the recession. So as you look around your obvious risk, we've already identified, which is you're going to have to go into a new property if you choose to buy at probably double the interest rate you're at. I mean, remember early COVID, I mean, there were mortgage rates down in the, you know, 0, 1, 2 percents. I mean, I know somebody in California just bought and are paying 8.2 for a house. I mean, are you really ready to do that spread and what is that going to cost you to do it? On the other side, you've got to look at the risk of selling now and you maybe are in a good mortgage and now you're going to go rent and you didn't pay attention to the rent rates and you're in a double rent market. Meaning a year ago, you could have got a place for a thousand. Now it's 2,200 for the same place. So you really have to look at the analysis of the risk of it, but there's also opportunities. There's opportunities that people that are going into foreclosure, as I mentioned, because they bought a $600,000 house is now at a, you know, 350, $400,000 appraisal and valuation and banks are foreclosing and that's going to pick up as we see this next year coming in. So there are opportunities to maybe be buying. Does that mean sell your house for that opportunity or do you use that as a rental property? So I think you really got to understand the opportunities and the risks in your market. Now, before I go to number three and the five things that are absolutely pivotal, right, that'll help you with that market research, I want you to subscribe to my channel. I want you to click that notification button, be here five days a week. Yes, I want you here every day. And what a great topic to have your kids listen to and your other family members listen to. I mean, many of you, as your parents, you know, passed away possibly during COVID, you got inheritance of properties and you don't know how to evaluate them. That's why we exist for you. We exist to be the one place, the integrated place. That's why we're called Integrated Wealth Systems, that you get to talk about any money topic, not just one topic. Remember the financial services world is intentionally segregated. You can talk to a CPA, you can talk to a lawyer, you talk to a state planner, you talk to insurance. Who's in the middle guiding that these people are actually doing what you want versus what they want for fees and commission. And therein lies why we exist, is to be the advocate for you and your family and help you make these decisions based on real numbers, not on emotional numbers. Now let's head number three, deciding whether to hold or sell your property. So I'm going to go through five very critical pieces, I think, as you assess your situation. So that is the number one thing. What is your circumstances? And I've said that forever, even when it came, you know, in 2006, 7, 8, when I was writing the Millionaire Maker book, you know, about using the equity in your property, using your HELOC. I mean, very loudly then, and I'll still say it now, is your personal individual ability to make money. Like my ability to make money and do what I do is in my wheelhouse, my rules. You don't follow my lead if you don't have the ability to turn on and turn off fast cash and cashflow in different markets, in different industries as quick as some of us know how to do. So your circumstances matter a lot. I mean, and then I'm going to go more personal. Are you really going to pull your kids out of school at a certain age? Are you really like going to be moving around? Your personal circumstances are critical as you walk through this recession. Number two, the timing before a recession. Selling your home before the recession hit would have been advantageous. We are not in that seller market anymore. It has passed. So now it's shift in favor of the buyer, all except for the interest rates they're going to have to pay to move into your property. That's the downside for them, which is the bank rate. Market variability. In 2023, we are having a huge variable market, probably more than we've ever seen. There are zip codes, and I'm not going to go state by state and county by county. There are zip codes that are highly advantageous for a sale and some that are not. Again, this is an analysis that most of you don't know how to do and you need to use our teams. So click on that link below, grab a strategy session with one of our teammates. We'll walk you through just what some problems are, what some solutions can be, and then you decide if want to move in closer and actually get some real help or hope and pray out there. I mean, some of you have got to be tired of this hope and pray methodology that you're living by and trying to figure it out alone when you don't have to. Figuring out alone creates a lot of risk in and of itself. Potential for lower home values. So again, during an economic turndown, it can be challenging because the lower home values are going to come in. So your houses aren't going to praise necessarily, depending on the market again, at the price you got it at. So if you plan to purchase your next home with cash during a recession, again, you've got to do the analysis. And then number five, you've got to consider future market possibilities. So future market possibilities, we're going to move through this. We always move through a recession. Do you want to hold for now? Wait till it comes back to more of a seller's market and hold then. And again, what are the variables and circumstances? We can walk you through an analysis, a risk analysis, a due diligence analysis. So grab a strategy session and let's talk about that. I'm also going to give you a link to Real Estate as Leverage. It is my course that I wrote, an eight-hour course on how I became a real estate millionaire and gives you a lot of just detail around things around, you know, another way to hold a property is in your own LLC and not own a personal property. And you can still homestead it if you actually have a housing agreement to live there. So there's more sophisticated ideas for those of you that are higher net worth out there, but you got to lean in and have a conversation. If you have any questions, go to askloreal.com. I do little sequence mini makeovers out there. So if you're a member, you can raise your hand, talk to your strategist and say, Hey, I want to really talk to Laurel one-on-one on a zoom call and ask her some questions. And that's available as well. So can't wait to talk to you, be part of your mentoring team, be part of your advocate team, because you are overpaying taxes in most cases, getting taken advantage of in many cases financially, because you just don't know about money. So be here five days a week, and we'll talk to you tomorrow.