The current state of emergency has literally changed the way that we do business. Real estate is considered an essential business so yes, we are open! However, buyers and sellers alike have wondered about the state of affairs in real estate under the COVID-19 quarantine and what they should do. To that end I have put together a list of considerations for both buyers and sellers to keep in mind when deciding whether or not to make their move.
Considerations for Buying and Selling Real Estate Under COVID-19 Quarantine
Buying
- Getting a Mortgage – Lenders are making the requirements a little more stringent under COVID-19 but it is not impossible to get a loan and you may even benefit from lower interest rates. If you would have qualified for a mortgage before the quarantine, chances are you qualify for a mortgage now. The hoops you would have had to jump through before may be a little higher now but not impossible. Don’t delay if you are ready to buy, keep moving forward with your plans.
- Market Inventory – Some sellers may have delayed plans to list their homes, but many have not and are not going to delay. These sellers looking for qualified buyers like yourself to buy their house so they can move on. Given the circumstance, some may even concede more flexible terms. You have nothing to lose and a house to gain, so go for it!
- Home Values – A few years ago the market was heavily in favor of sellers. Around the end of 2017 and starting in 2018 it started to stabilize more and become more of a balanced market which works in favor of both buyers and sellers. The market is currently in this holding pattern and while we may want to entertain the thoughts of a deep recession and getting a great deal on a home, it is too soon to say what will really happen in the months ahead.
Prices have not fallen steeply, and may not for a while still. When they do it is hard to say how much they may fall and if waiting will be worthwhile, because while you wait for prices to drop interest rates may go up. Nevertheless, one thing that can be said for certain is that the likelihood of prices going up right now is pretty much nonexistent. Steady home values combined with reduced interest rates make for one good reason to buy now rather than later.
Selling
- Listing Your Property – If you are thinking about listing your property, list it! There are many sellers that are going to hold off on listing so your property may be one of the few on the market for buyers to choose from, giving you a better shot then when there is a more robust inventory.
- Pricing Your Property – As I mentioned above, as of late, the real estate market has been relatively balanced between buyers and sellers. That means there is no particular advantage to either. While things have changed because of COVID-19, home values have not dropped drastically, at least not yet. How much they will drop remains to be seen, but one thing is for sure, right now is your best shot at getting top dollar for your property given the known unknowns caused by the national state of emergency. So if you are thinking about selling, don’t think twice, just do it!
- Uber Qualified Buyers & More Offers – With reduced competition and the right listing price offers are likely to come in steadily. Since lenders have instituted stricter guidelines for lending potential buyers for your property have to be uber qualified to purchase right. In other words there is a lot less chance that the deal will fall through because of the buyer’s finances. What this means for you as a seller is that you will have the opportunity to choose the best offer from qualified buyers and to sell for top dollar now rather than to wait and see what might happen later.
By keeping these considerations in mind both buyers and sellers can decide whether now is the right time to make their move.
If you have additional questions about buying or selling during the COVID-19 quarantine, please feel free to call me at 954-993-4246 or email me at desiree@desireeavila.com. I will be happy to answer any questions you may have.
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