Should I sell a home during the COVID-19 crisis?
Should I buy a home during the COVID-19 crisis?
Is it safe to sell or buy a home during the COVID-19 crisis?
What do you think will happen with the real estate market?
Those are the questions that people are asking their real estate agents right now, and I have answers and opinions on all four questions.
First, I want to introduce a disclaimer:
I don’t have a crystal ball and I cannot see the future. I do have opinions that are guided by my experience and the thoughts/opinions/advice of others in the industry whose opinions I value. If you run into anyone who claims to know exactly how the real estate market will be affected for the next few months, year or two years; hopefully their crystal ball is working better than mine. The truth is, we just don’t know. These are unique times that we have not seen before. But I am comfortable making a few predictions based on our current data.
Brian Zell – The Zell Group | C21 Everest
Should I Sell a Home During the COVID-19 Crisis?
YES ✅ – If your current situation dictates that selling a home right now is a necessity.
YES ✅ If you want to take advantage of a market where homes are selling at (or near) what they were selling for prior to March 2020. It’s true that the volume of homes has slowed significantly, but prices have stayed essentially where they were. Homes that show well and are priced accordingly are selling, with multiple offers. Interest rates are very low right now, so the buyers who are out shopping for homes, have a lot of buying power. Mortgage lenders are still approving loans to qualified buyers and escrow lengths have not been impacted too much.
YES ✅If you think you’ll be selling your home within the next few years. A lot of so-called experts have been predicting a “shift” in the real estate market for some time. A lack of inventory and historically low interest rates have kept prices rising. These conditions still exist right now, today. But for how long? Selling now might be your best bet for selling at the highest price possible.
YES ✅ If you are considering a move-up (upsizing) or move-down purchase (downsizing). Interest rates have been at a historical low. A low rate can have as much as an impact on your monthly payments as the price you pay. If your monthly budget is a concern, this may be your best chance at historically low interest rates.
Should I Buy a Home During the COVID-19 Crisis?
YES ✅ If you are working and can get pre-approval from a lender. The buyer pool is smaller than it was just a few months ago. Multiple offers have been the norm. Many buyers were competing against 2, 5 even 10 offers or more just two months ago. The VA, FHA and low down payment buyers now have a much greater chance of having their offer accepted. If you are a cash buyer, you haven’t been in a stronger position in years.
YES ✅ If life is dictating that it’s time to buy. Rates are low, historically low. Sellers are motivated. Yes, the market is still a sellers’ market, but sellers are motivated. They’re unsure of what the future holds, so your odds of negotiating a more buyer-friendly deal have increased.
YES ✅ If the amount of your monthly payment is a priority. I think I’ve mentioned it before, but rates are historically low. A difference of 1% on your loan’s interest rate can equal $200-$300 per month (depending on your loan amount). Please see a lender for more information.
YES ✅If you think you want to wait “for the market to drop”. Here’s some food for thought: If you’re renting and paying $2500 per month, you’ll pay your landlord $60,000 over the next 24 months. When we do see the market “shift”, it won’t be like 2008. The loans and predatory lenders that were the reason of the market crash just don’t exist today. Even if prices drop 5-8-10%, you’ll never get the $60,000 you paid your landlord back. If that money was spent on mortgage payments over that span, you’d be paying down your loan (and growing equity) and possibly be taking advantage of the tax savings that home ownership can provide (please see your financial advisor/tax person for more info). Waiting may actually cost you money.
Is it Safe to Sell or Buy a Home During the COVID-19 Crisis?
The California Association of Realtors (and our local Realtor® board) have provided guidelines for safer showings of homes and the practice of real estate. The Zell Group (Brian and Samantha) adhere strictly to these guidelines, whether working with buyers or sellers.
- All showings should be virtual (online). If they must be done in person, only 2 persons from the household that is interested in buying, are allowed in the home along with their agent.
- Everyone who enters will sign a disclosure.
- All persons who enter will wear a face covering, gloves and shoe covers; and will take those items with them when they leave.
- Hand sanitizer will be provided, and guests are asked not to touch any doors, handles, etc while in the home.
No in-person open houses are to be held. We do offer ‘virtual’ open houses via Zoom and Facebook/Instagram live videos.
We offer Matterport virtual tours, property specific websites and videos of our listings to provide the public the most access to the property without having to set foot inside. This is done to greatly reduce the amount of people entering the home.
All other aspects of the home purchase can be done with little human to human contact, including title and escrow services and inspections.
What Do You Think Will Happen With the Real Estate Market?
Remember my disclaimer above?
I don’t have a crystal ball and I cannot see the future. I do have opinions that are guided by my experience and the thoughts/opinions/advice of others in the industry whose opinions I value. If you run into anyone who claims to know exactly how the real estate market will be affected for the next few months, year or two years; hopefully their crystal ball is working better than mine. The truth is, we just don’t know. These are unique times that we have not seen before.
I like to focus on the now and near future. Rates are low and predicted to stay that way in the foreseeable future. This is helping buyers continue to qualify and purchase homes. Low rates and limited inventory are keeping prices up for sellers.
Despite what we are experiencing right now, it is a good time to buy or sell real estate. The question is, is it the right time for you? Let’s talk and see if it makes sense.
Text “TALK” To Brian Zell at 805.836.4321
The Mashburn Zell Group 