Why A Looming Recession May Mean Its Time To Sell

A man stands atop a red line and tries to predict a future recession

With many economists and experts predicted a recession soon, many home sellers are wondering if now is the time to sell their home. It can be intimidating to think about, but many economic signals indicate that it could be a serious possibility in the next year to year and a half. If you’re on the fence about selling your home, here are a few factors to take into consideration.

What type of home do you own?

A recent study by the real estate brokerage group Redfin recently conducted a study to determine which homes were most likely to lose value in a recession. The conclusion was that condos and townhomes lose the most value overall, while single-family and two-story homes generally kept the most value. If you have a condo or townhome, your best financial option may be to sell quickly, before a recession torpedoes the value of your home.

What’s your current financial situation like?

If you’re strapped for cash or need to sell your home fast, a cash sale may be the best decision for you. In a recession, the housing market becomes what is known as a buyer’s market. This simply means that buyers have more sway in home buying negotiations since fewer people will be looking to buy a home. In this scenario, getting the value you want for your home will be even more difficult, and you may have to take significantly less money in order to land a sale.

What are your future plans?

People sell homes for a number of reasons. It may be their livelihood, or it could be a home they inherited from a loved one. A new job opportunity can also mean it’s time to sell, so it’s best to closely evaluate your situation before a big decision. If you anticipate a big move in your future, then a quick cash sale may best set you up for success.

El Paso’s Best Cash Buyers

El Paso’s real estate market continues to grow in size and value, and El Paso Cash Home Buyers expands with it. If you’re looking for the most cash return for your home, contact us to have money in your hand in as little as seven days!

Selling Your Inherited Property in El Paso

inherited property

So you’ve inherited a home! There are contrasting emotions that come with being given a home. For one, you could be excited about the possibilities of the new home. On the other end, you could be scared and/or stressed with the thoughts of maintaining it. These emotions will have a lot to do with the home itself and your plans for it. Will you move into it? Does it have the potential to be rented out?

If you’re currently feeling as though you want to sell the inherited property but haven’t quite made up your mind, take the following into consideration:

1. Do you have the time and resources to maintain it?

As a whole, consider the realities of keeping the home. If you have the needed time and money to maintain the property than you are at an advantage. If you fall on the other side of the spectrum, that’s okay. Not everyone can afford a second home, even if it was given to you as an inheritance. Do you know that common saying, “Nothing in this world is free”? Unfortunately, It’s true. Inherited properties still come with a cost in the form of maintenance and possibly property taxes.     

2. Is the inherited property located in the same city as you?

Living in a different city than where the inherited property is located comes with some major drawbacks. Unless you have friends or relatives who are willing to help you out, you’ll need to find time to check on home every couple of months. Even if no one is living in it, you need to make sure there are no major issues going on. For example, you’ll want to make sure that there isn’t any property damage such as a leaking roof or pest infestation.  

3. Do you plan on renting it out?

One of the biggest advantages of owning an inherited home is that you can rent it out and earn additional income. However, renting it out does require work, time, and money in order for it to be successful. Since renters in El Paso want homes that are modern, clean, and hassle-free, you’ll need to get the home in shape before you can list it. With an older home, this may require several renovations or a complete makeover. While it is possible, you will need to determine whether you have the money for these renovations. Additionally, once you have tenants, will you be able to keep up with the maintenance?

4. Is the home causing more stress than anything?

When parents or grandparents pass away, their children are often surprised at how they chose to divide (or not divide) their lifetime earnings. A home is often one of the most controversial items on the will. It can create tension, fights, and even months or years of not speaking. If you currently find yourself in this situation, it may be best to sell the home. When an inherited property is causing more harm than good, you should move forward and away from the situation by distancing yourself as much as possible. And the furthest you can get is selling it.   

5. Do you need money for something else?

Homes are amazing assets. An inherited home is twice as amazing because you didn’t have to pay upfront for it. The question of whether you should sell it will come down to this: Do you need the money? Even if the home has sentimental value, it’s important to consider whether you could use the money you earn for the home on something more pressing. For example, let’s say you need help sending off your son or daughter to college or you’re tired of being in debt and want to pay off those high-interest rate credit cards so you can sleep better at night. If there are other large expenses that need your immediate attention, selling the inherited home could be wise.

Don’t Stress! Contact El Paso Cash Home Buyers Today

No one is ever prepared for the realities of being granted a home. Even if your parents, grandparents, or whoever left you the home gave you advanced notice of their plans to leave the home in your name, when the time comes, things can feel very differently. Perhaps your situation today can’t afford you the time and resources needed to maintain an entirely separate home.

If you’re feeling overwhelmed by the whole situation, give us a call. We can provide you with a market analysis of your home, which will ensure that we present you with a 100 percent competitive cash offer based on the current real estate market. To learn more, simply give us a call!

3 Signs It’s TIME TO SELL Your Rental Property

sell my home

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!

Do You Need a Fresh Start? When To Consider Selling Your Home

Financial assistance

The reality is, the majority of Americans live paycheck to paycheck. On top of paying the bills that come every month such as the mortgage, electricity, water, and other personal needs including groceries and hygiene products, we still have other bills. It could be the credit cards we used to buy furniture and Christmas gifts, a car payment, student loans, something we financed, and essentially this list of additional bills can go on and on. Carrying debt means that not only are we living paycheck to paycheck but essentially we’re taking on additional debt in the form of interest that won’t go away until the account is paid in full.

It’s no surprise that the desire to start all over again is alive in so many of us. We’ve all made mistakes with money even if it was as minor as buying the wrong pair of shoes that we can no longer return, the feeling of defeat is something we’ve all experienced. If life were as simple as hitting a reset button the majority of us would have hit it by the time we turned 32. But since we don’t have this option, it’s time to be practical. This begins with a financial plan.  

Creating a Financial Plan — Deciding What Goes and What Stays

Think back to a time when you didn’t have debt. What did your life look like? Perhaps you weren’t driving the same vehicle, your student loans were non-existent, you didn’t own so much stuff, or perhaps you didn’t have the house you live in today. It’s easy to get comfortable to a certain lifestyle but once you realize you can longer afford that life, it’s time to make changes.

Making a financial plan begins with listing all of your debt. Write down the lender and exactly how much you owe. Then, determine how long it’s going to take to pay off those accounts. Once you have a clear picture of what your true debt looks like, it’s time to decide what should stay and what should go. Do an inventory of our home. Clean out the garage and see what items you could possibly sell.

One of the biggest items on your list will easily be your home. If you can longer afford your mortgage and your income won’t be changing anytime soon, it’s time to sell.

Selling Your Home for Cash

Imagine not having a monthly mortgage. Or imagine if that payment was even half of what it is today. You could pay off those credits and you wouldn’t feel like you’re consistently suffocating. When you sell your home for cash, not only will you have the ability to start fresh but you can make wise decisions with a clear mind that will put you in a better position then if you were to stay in the one you’re presently in.

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Explore How Selling Your Home in El Paso Can Provide You With Financial Freedom

El Paso Cash Home Buyers is an investment company. We buy homes and invest our own resources to fix them up and make them move-in ready for the next dwellers. When you sell us your home, we are investing in you. Our cash offers are competitive because we know that this amount is going give you the leverage you need to begin your new journey. But above all, our offers are based on the real market value. We’ll never ask you to make any repairs and we always buy as-is. You can think of us like a reset button. Sell us your home and start fresh!