Should I Sell My Home Now or Wait Until the Coronavirus Eases Up?
You may have had plans to sell your home before the Coronavirus hit. Now you are faced with the tough decision of whether or not to move forward - and when.
Some are waiting it out for now and hoping the situation improves in the coming months. However, not every seller has the luxury to take such an approach without making some serious trade-offs. They may be facing a job relocation, a growing family, etc.
Selling a home in 2020 is a lot different than in the past. So much so, that people have stopped selling their homes altogether. Considering the lasting effects of the virus could carry into 2021 and beyond, we can’t expect to be completely in the clear anytime soon in regards to putting out that for-sale in the front yard.
Here’s some advice for homeowners who are struggling with what to do next.
Act before property values drop
Data supports this statement. You may assume that the coronavirus would impact all markets as swiftly as it did stocks and other markets. But housing is more stable, at least in the short term. Even after COVID-19, a severe supply shortage has propped up home prices for the time being.
A recent report found that 75% of agents report that home prices are holding steady in their market. There’s definitely something to be said for now being a unique — and potentially fleeting — window of opportunity for sellers.
But the economic future of the U.S. is uncertain. If you wait to list, you risk your home value declining.
Some homes may be easier to sell than others in this environment
Before you list, ask an Assist2Sell expert how likely your home is to sell in this unusual market.
Some properties fare a better chance of selling than others based on factors like:
Price point
A well-kept home at the median price point in the Reno/Sparks area, that is priced competitively is likely going to sell.
Real estate analysts predict that the luxury housing market will be hit the hardest by COVID-19. Buyers at higher price points who have large holdings in the equity markets may postpone buying as they wait for markets to stabilize.
Online presence and marketability
You must rely more on online listing photos and videos to convince buyers to leave their house to view it in-person. Walk-through style video tours and advance 3D tours have become vital.
Your next steps should weigh into your decision
If you have already secured your next home or have an immediate need to sell (job relocation, financial reasons, etc.) should move forward with your home sale. If you’re still figuring out your future housing situation, consider how COVID-19 affects your options.
Considerations if you plan to buy:
Mortgage approval: In response to COVID-19’s impact on the economy and employment, lenders are raising the criteria for mortgage approval, requiring higher credit scores and loan-to-value ratios.
Your income security: . Consider how an unexpected job loss may reduce your household income — this may impact your ability to qualify for a loan or make mortgage payments.
Your back-up plan: Create a temporary housing plan in case it takes longer than anticipated to purchase your next home.
Considerations if you plan to rent:
Your credit score: Expect property managers to request a credit check and references before they hand you the lease; property owners may cautiously select new tenants to ensure they are capable of making rent payments.
Your income security: If your company anticipates furloughs or layoffs, you may want to play it on the safe side and rent a home on the lower side of your monthly budget.
COVID-19’s impact on the rental market: Local laws may restrict your ability to view rentals in-person unless they are currently vacant.
Get an expert’s opinion — and go from there
Selling your home during COVID-19 is a personal decision. Spend some time considering how relevant financial variables, health concerns, and local regulations will impact your home sale process.
For the best insight on how COVID-19 is affecting the Reno Sparks real estate market, reach out to an A2S agent. Our team can help you determine whether your home is marketable at this time, answer any questions you have, and accommodate any special needs.
A2S Buyers & Sellers Realty
Office: (775) 688-6060
Email: info@4RenoHomes.com
Address: 6490 S McCarran Blvd F-46, Reno, NV 89509