How A Crisis Might Impact the Housing Market in 2020

Anytime there is a change in the economy, the housing market reflects that change. So much of the housing market depends on externalities and what happens to the world and the nation’s economy. As of March of 2020, the economy suffered a particularly hard blow when the coronavirus was deemed a global pandemic and brought the U.S economy to a halt. So many homeowners that were thinking about putting their house on the market may now be experiencing some uncertainty. The whole world is experiencing uncertainty when it comes to the markets and the foreseeable future in the economy. We thought we’d look at some important things to remember about cash home buyers and how we might be able to help in these times of economic uncertainty. So we thought we’d take a look at some foreseeable changes and how selling your home for cash might be an option.

There is certainly a decline in confidence due to the uncertainty of the economy. Everything is bringing an abundance of caution, especially large financial transactions like home purchases and sales.

The virus crisis is not expected to last long. The experts say that unlike the subprime mortgage crisis of 2008, this is more of a temporary downfall due to the slowdown of the economy. So even if there is some current uncertainty, it is not likely to last long. We should stay optimistic for the end of the year, as the economy will likely pick up then.

On the demand side, the data shows that there will be buyers in the market, as the curve starts to slow down and consumer confidence picks up. In the early part of March, there was some decline in buyer interest and yet investors seem to be scooping up some good properties. This means that while some might tell you it’s the wrong time to sell, you actually might benefit from putting your house on the market.

Advantages to Selling Your Home for Cash

There are a couple of upsides to selling your house for cash, even when you might be unsure:

  1. The sale is more unlikely to fall through. Unlike going through a conventional sale and loan, if you are selling your home for cash, the sale is less likely to fall through.
  2. Closing is much faster. These transactions happen quickly and there is no wait of 40 or more days before closing and inspections and all of that. As the saying goes, cash is king when it comes to real estate deals.
  3. Cash sales are ‘as is.’ If you’re trying to avoid making costly repairs on your home or need to make the sale quickly, the cash option allows you to make that sale without having to invest time and money on a repair or renovation.
  4. Liberates you of Renovation costs. When homeowners look for a home, they often want to see recent renovations or maybe updated features of the home. With a cash offer, you can avoid these renovation costs and free yourself up from having to consider changes to the bathroom or living room.

So while you are hearing a lot of talk about the uncertainty of the market, one good thing to focus on is the fact that it is likely to be temporary.

Many homeowners worry about the right time to sell their home. This is a common worry and especially when there is uncertainty in the air. If you wait too long, you might end up getting less for your home or a foreclosure, sell it impulsively and you might miss the upswing after a downturn in the economy. If your home is already needing repairs, then you might end up losing more value as those repairs accumulate.

So is it a Right Time for You To Sell?

This is a common question, so let’s look at a few things that might indicate this.

  1. Making the payments every month feels like a painful stretch.
  2. You are feeling overwhelmed with financial uncertainty.
  3. You are feeling overwhelmed with the many repairs you might have to make.
  4. You’re ready to move and are not wanting to wait the time for repairs and/or a traditional loan.

Sell Your Home Quickly With El Paso Cash Homebuyers

Here at El Paso Cash Homebuyers, we want homeowners to stay calm throughout all of this. We are here to answer your questions about selling your home and help you through the decision.

3 Reasons to Sell Your Home Before 2019 is Over

 

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On the fence about selling your home? By no means is this an easy decision but if you have goals to be free of a mortgage you can longer afford and want a fresh start, then it’s time to sell.

With a healthy national market on your side and El Paso’s favorable real estate growth, 2019 is proving to be the best year to sell. Here’s why:

1. New Buyers Continue to Enter the Market

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El Paso is seeing a wealth of real estate growth. Unlike other major cities, this growth is attracting buyers from all vantage points. Whether it’s the young professional who wants a starter home in an established neighborhood or a retired couple who is looking for a smaller home since they’re now “empty nesters”, there are various types of buyers out there.

How does this all affect you? Selling your home for a cash home this year will guarantee that you receive the highest cash offer possible. When the odds of reselling your home are higher, the cash offer will be higher. Compared with previous years, in 2019 homes are sitting on the market less time because of the influx of buyers.     

2. Interest Rates Are Still Attractive

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While we are still seeing relatively good interest rates, those rates may take a leap next year. According to John Pataky, a chief consumer and commercial banking executive at TIAA Bank interest rates are expected to rise.

In a 2012 U.S. News article, Pataky was quoted as saying, “We do expect over the next 12 months that mortgage rates will continue to drift higher.”  

So if you’re looking to sell your home and move into a new one, you’ll want to act sooner rather than later in order to get the best interest rate possible.

3. There’s No Telling What 2020 Will Bring

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We’re halfway through the year, El Paso. Before we know it, 2020 will be here. If there are things currently preventing you from reaching your goals, it’s time to do something about them. Financial goals are something we all deal with. Whether your 2019 resolution was to be debt free or to rid yourself of your bad spending habits, it’s never too late to start working towards your goals. However, there’s no telling what 2020 will bring. With a favorable real estate market, you’d be a better position to sell this year.

Sell Your Home for a Competitive Cash Offer Today

Now that you know the odds are in your favor, it’s time to act. The best part is—you don’t have to do much! When you sell your home to El Paso Cash Home Buyers, we’ll present you with a cash offer for your home as is. We don’t require any home improvements or repairs before our walk-through. Once we do a market analysis on your home, which is a free Comparative Market Analysis (CMA) that examines your home’s value as well as how it measures against the competition, we’ll give you a cash offer. Then, the ball will be in your court!

Since we’re competitive, we’ll give you the opportunity to scope out other legitimate buyers and see if they’re able to match or beat our offer. If we’re not able to match it, we will give you $500.

Don’t delay getting the help you need today. Give us a call: (915) 229-8974

I Can No Longer Afford My Mortgage: What Are My Options?

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When America experienced the financial crisis of 2007 – 2008, the housing market went into a frenzy. The housing bubble popped and real homeowners were scrambling, trying to figure out their next move. Though we like to think of our mortgage as something that is secure and will keep us in our homes until that final payment, unfortunately, nothing is certain.

If you can longer afford your mortgage payment, there are options. Know that you are not alone in your struggle, even if it feels this way. Taking action now can help eliminate any additional financial damage.

Here’s what to do if you can no longer afford your home:

Contact Your Lender Right Away

As soon as you realize you won’t be able to afford your mortgage payment, that’s the time to contact your lender. Inform them of your situation. In some cases, you may be able to apply for a loan modification. Options such as refinancing due to financial hardship are feasible when there is enough evidence to prove you’re going through a serious financial struggle because of a life change such as losing your job or becoming injured.

If you’re unable to secure a modification in your loan, then the next step is to consider selling your home.  

When Selling Your Home is the Best Move

Time is especially critical when you can no longer afford your mortgage. As soon as you miss your first payment, your mortgage lender will begin taking steps for foreclosure. You do NOT want your home to go into foreclosure. If you allow this to happen, you will essentially lose everything. Not only will you be forced out of your home, but you also won’t have the funds to move.

When you have no clear sight in mind of when you’ll be able to afford your next mortgage payment, that’s when selling your home is the best move. Whether you lost your job, are dealing with a serious health condition, or made a bad financial decision, selling your home through a quick sale will allow you to have funds for your next move. Through a short sale, such as selling your home for cash, you’ll be able to have the means necessary to pay for an apartment or other more affordable housing options.  

You’re Not Alone — Help is Available

Although it may feel like your world is caving in, remember that you’re not alone. So many other homeowners have been through what you’re currently going through and although you likely never imagined yourself in this position, you will get through it.

El Paso Cash Home Buyers is here to offer you the highest cash offer possible for your home. Since we base our cash offer on the market value of your home and we will beat any legitimate competitor’s offer, this ensures you will receive the best cash offer around. Connect with us today to learn more. In many cases, we are able to get you cash for your home, in your hands, in as quickly as seven days.    

3 Signs It’s TIME TO SELL Your Rental Property

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Whether this was once your primary home or you inherited it after a relative passed away, having a rental property can come with numerous benefits. This does, however, depend on what the situation looks like. It’s possible to have a rental property that’s lucrative and easy to manage one year then find yourself with a money pit the next.

If it’s been years since you last saw positive earnings from your rental home, you should consider selling. A good real estate investment looks vastly different than a home with one too many repairs whose current dwellers are making them worse! In addition to not earning the money, you should be from monthly rent, putting money into the home could wind you in the negative.

So if you’re experiencing any of the following, consider selling your home sooner rather than later:

1. Your Rental Property’s Finances Are Always In the Negative

This reason alone should be why you act fast. A rental property should bring you consistent POSITIVE cash flow. When you’re consistently having to chase down the tenants or you find yourself forking out your own money to cover the needed repairs, this can’t be good. Monthly cash flow includes your income on the rental as well as the expenses. These two should leave you with positive income. If the rent isn’t consistently covering the additional expenses, this will hurt you. You might think a month or two of paying out-of-pocket expenses is okay but once you go past that, you will only be damaging your finances.  

2. It’s Located in a Less Than Desirable Area

El Paso’s real estate market is changing. It is one of the top cities to buy a home and yet there are areas that aren’t necessarily seeing those benefits. The reason? Unfortunately, with new development, potential buyers are flocking to areas with newly-built homes. Another possible reason your rental home isn’t seeing traction since the margin of renting vs. buying is so close, many are choosing to buy vs. rent. From a financial standpoint, even renters are looking for the best way to invest. This means finding a home that’s a)for sale and b)located in a new development area. Of course, this isn’t always the case but it may be for your rental property.    

3. Managing it Feels Like a Full-Time Job

The purpose of owning a rental property is to bring in additional income. If this isn’t your primary source of income but it feels like a full-time job, then something may be wrong. From receiving calls from the tenants while you’re at work to spending countless weekends making repairs, the time you devote to the rental property shouldn’t drastically overlap with your professional and personal life. Moreover, if it’s affecting your health in the sense that you’re stressed and consistently worries—this can’t be good.

Ready to Make a Positive Change?

If you’re ready to rid yourself of a rental property that’s no longer worth your time and effort, then consider selling it for cash. At El Paso Cash Home Buyers, we buy rental properties in any and all conditions. With the cash we give you for your property, you’ll be able to use it towards your own home or invest in something else for that matter. Our cash offers are competitive and we’ll even beat another competitor’s legitimate offer. Connect with us today to learn more!