Is Selling Your Home During COVID-19 a Bad Idea?
For the past 100 years, spring stands as the peak season for home buying and selling. But now that we are officially in spring, is it a good idea to sell during COVID-19 restrictions. Will your home sell and are buyers actively looking?
Tucson Association of Realtors released March 2020 (an February 2020 to March 2020 comparison) monthly indicators and the results are:
- New listings have increased
- Still a Seller’s Market
- Sales price increased
- Less days on the market
Local Tucson realtors haven’t seen a decrease in the amount of sales activity because of the historically low interest rates. With the low interest rate, people can buy a house for less than they can rent.
Click here to see All Residential Properties Market Overview.
Why It’s an Essential Service
Even during stay-at-home restrictions, there are circumstances that sometimes make it necessary to put your home for sale, including:
- Estate sales
- Downsizing to go into assisted living
- Job loss
- Divorce
- Military relocations
We don’t know what the economy will look like three or six months from now. If you hold off on listing your home, you run the risk of doing so at a time when the housing market as a whole most likely will go down. End result you’re less likely to get the asking price you want.
Dealing with Strangers Visiting Your House
With COVID-19 restrictions, showings are down approximately 50%, but potential buyers are researching properties on the Internet. When they approach a realtor, they have already picked their top 2-3 choices. This means you have less buyers visiting your home but they are very motivated to purchase.
If you decide to list, we have altered the sales process to minimizes the potential danger of having strangers come in to view your property.
Instead of open houses, we are embracing technology to show your home through a video walkthrough.
- There are two options of creating your video tour:
- If you are living in the home, you can create the video tour with our guidance.
- For unoccupied homes, we create the video for you wearing masks and gloves to protect your property.
- When a potential buyer arranges for a visit, we advise them not to touch anything when seeing the property.
- We will be wearing masks and gloves to open and close the doors and turn on and off the lights.
As a side note… there are more vacant houses coming on the market than occupied houses.
Selling Process Might Go More Slowly Than You Expect
In March, mortgage refinances jumped, driven in part by homeowners pulling cash out of their homes or trying to cut their monthly expenses during the coronavirus crisis. Refinances accounted for 76% of all mortgage applications, according to the MBA.
Because of this unprecedented interest in refinancing, escrow people are swamped and it is taking longer to fund a mortgage. Instead of 35 days or less, funding a mortgage is averaging 35-45 days.
Here is what it means if you are buying a house
For homes $300,000 and under… we have found houses won’t stay on the market for as long as they usually do, because there are many buyers bidding on the relatively few houses for sale. The buyer must make an offer very quickly or risk losing it to another motivated buyer. Tucson homes in this price range are getting list price.
For homes above $350,000… there is a larger inventory of homes with a smaller pool of buyers giving buyers an advantage in price negotiations.
If you’re in the market for a new Tucson home, how do you safely go house shopping
While there are so many variables that can’t be predicted or prepared for in this new state of existence, people’s need for housing is a constant. As a result, real estate services, legal and banking services, and even moving services qualify as essential services.
Buying a home is possible but realize that you may need to be a little more patient and flexible in your transaction as well as the move itself.
How Technology is Helping Buyers Navigate the Home Search Process
A recent realtor.com survey revealed that buyers are still considering moving forward with the home buying process, even if they can’t see the home in-person.
With Covid-19, many steps formerly done in person have shifted to virtual and video. Things like appraisals, document signings, and even home tours are finding their footing in technology to accommodate social-distancing requirements.
- When viewing someone’s home, it is suggested to wear masks and gloves and avoid touching anything.
- The simple conveniences you need for your move may be unavailable or slow wait time on next available service. Cleaners, painters, donation pickup services, and movers have all changed their policies or paused services causing unexpected delays.
Home inventory is low and interest rates are low. With a few extra precautions, this could be a perfect time for you to buy.
FREE CONSULTATION
Everything You Need to Know Now About Real Estate.
Selling or buying a home during a pandemic is new for everyone. It has had unprecedented impact on all real estate transactions. To help you navigate the market, I am offering a free real estate consultation to support you through this crisis.
