Spring season is usually the best time to sell a house –this spring, however, is a different story. As the coronavirus emerged in the US, it impacted almost every industry including real estate. Seeing that the cornerstone of buying or selling a home is face-to-face interaction, it’s no surprise that due to stay-at-home orders and social distancing measures in most states, selling a house in the spring of 2020 will be anything but normal. So far, the latest National Association of Realtor’s survey revealed that 48% of agents have noted a dip in buyer interest compared with a year ago. Naturally, homeowners who were planning to list their homes for sale have found themselves asking: should I sell my house now or wait until after the coronavirus pandemic is over?
Whether or not you should sell your home right now is a personal decision that depends on your area and circumstances. Even though several states and federal governments have issued restrictions to stop the spread of the coronavirus, the US housing market 2020 continues to operate. If this crisis is teaching us anything about real estate, it’s that we can adjust. The way we do business has simply been altered to ensure the safety and health of all persons involved in a transaction. In this article, we’ll help you figure out how to sell your house in the spring, address some concerns, and offer tips for selling your home safely during the pandemic.
When Should You Delay Listing Your Home?
While you can surely list your home right now, there are some situations in which you may benefit from holding off on listing your home. First and foremost is your personal safety. The Centers for Disease Control warns Americans to socially distance themselves to avoid exposure to germs. If you’re in an area with a high number of coronavirus cases, you don’t want to risk having people walking in and out of your home and touching your furniture. In such areas, social distancing measures are also stopping buyers from home shopping. Meaning, you may have a hard time finding a buyer if you decide to sell your house now.
Another reason why you might want to wait from selling your home is if you had just refinanced. If you recently refinanced your mortgage, then hopefully this has helped ease financial woes by lowering your monthly payments. This should help in keeping you more securely in your home – so there’s no reason to consider selling your home. Furthermore, most banks in the US are allowing customers to pause their loan repayments for up to six months if they are experiencing financial hardship due to the pandemic. So if you want to sell because you can’t keep up with your mortgage payments, contact your broker – you may be eligible for the government’s stimulus package.
Finally, if you’re planning to sell in a sellers’ market where buyer demand drives prices up, now is not the best time to sell a house. People are financially worried due to losing their jobs and income from the pandemic, so it’s almost impossible to see eager buyers rushing to the market. Plus, the longer the coronavirus pandemic lasts, the more likely buyers will delay purchasing decisions. And while there still are people buying houses, the number of buyers is not enough to drive prices up. So if you’re unwilling to settle for a price lower than what you may have gotten in a normal spring season, you’re better off waiting.
Related: How the Coronavirus Will Affect US Home Prices in 2020 and Beyond
Why Move Forward With Your Listing?
For starters, if you need to sell your home for personal reasons (like if you’re relocating for a job, in need of more/less space, or facing financial circumstances that require a move) you shouldn’t let the coronavirus stop you. In late March, the Cybersecurity and Infrastructure Security Agency under the US Department of Homeland Security deemed residential real estate sales an “essential business” that is allowed to continue during the pandemic. So, check with your real estate agent and local government to understand what’s allowed in your area, and remember that things could change as this pandemic progresses.
Moreover, there are a few reasons why we might still be in the best months to sell a house. First of all, mortgage interest rates are at an all-time low. Economists predicted that rates would be below 4% in 2020 even before the first known coronavirus cases in the US. While rates have gone up and down in the past weeks, they’re currently still competitive at 3.3% and many predict they’ll drop even lower in the coming months. Hence, many buyers will undoubtedly want to capitalize on those interest rates. In this case, you may be in a good position to find a buyer easily if you decided to move forward with your listing in 2020.
Furthermore, though there’s talk of COVID-19 slowly spurring a recession, that hasn’t happened yet. Currently, housing inventory is low nationwide as many sellers pull off their listings. This spells good news for sellers who decided to keep their homes for sale since this means there’ll be fewer homes for buyers to choose from and home prices might hold steady. However, we don’t know what the economy will look like three or six months from now. If economic conditions worsen, more buyers will give up and home prices could drop. Meaning, if you delay selling your home, you run the risk of doing so when the housing market is down and you’re less likely to get the asking price you want.
Related: A Coronavirus Recession and Its Potential Impact on Real Estate
Tips for Selling a Housing During the Pandemic
Now you should have an answer to your question of “should I sell my house now?” If your answer is yes, you might be wondering how to sell my house fast during the coronavirus pandemic in the US. Here are some of the best tips that’ll help you sell your house in 2020:
#1 Get Your Property Inspected
Social distancing measures allow home inspectors and appraisers to do their job with minimal contact. For example, you can and the inspectors to walk through the house by themselves, unaccompanied by the buyer or real estate agent. They should also wear gloves when touching anything in the home and consider wearing a mask as well. Also, ask the inspector to use a hazardous-material uniform to provide a barrier between the inspector and the home. Sellers should also stay secluded in one part of the home and wipe down everything with disinfectant wipes when they leave.
#2 Pricing Your House to Sell
If you’re having a hard time selling a house in the spring, it is usually because the price is too high for the real estate market. It is important to be realistic about the value of your home. You need to make sure you set the right price that will attract buyers to your home during these times. The best way to do that is by running a comparative market analysis. To run a CMA, look for homes that are similar to yours in the area that have recently sold (real estate comps). Check how much these homes have sold for and price your home according to that average. You can easily find real estate comps right here on Mashvisor! Sign up with a 15% discount with promo code BLOG15 to access our tools now.
#3 Use Virtual Reality & Online Marketing
Open houses are not allowed in many parts of the US housing market and are strongly discouraged in others. Instead, buyers and sellers are now relying heavily on virtual open homes, which let people see inside a home via online video. So make sure to hire a real estate agent who has experience in digital technologies and how to use it to show off your home. And if you’re in an area that allows physical showings, make sure to proceed with caution. Ask potential buyers to wear gloves, masks, and to not touch anything when they look at your home. Make sure all the doors are open and to disinfect the house before and after tours.
In addition, now is the time for sellers to heavily rely on online marketing to spread the word about their listings. When writing your listing, be as specific as possible. That way, potential buyers can get a full understanding of everything your property offers. You need to also be accurate, but don’t exaggerate or “stretch the truth.” Make sure to mention features about your home that make it unique or special in some way. And finally, find the best websites where you can list your home for sale. For example, you can list your property for sale on the Mashvisor Property Marketplace for free where it will be viewed by thousands of real estate investors who might be more encouraged than regular buyers to buy a house in cash.
Visit the Mashvisor Property Marketplace now and create a listing for free.
#4 Prepare Your House for Showing
When you’re selling a house in a pandemic, the homes that are going to sell the quickest are ones that are ready to move in. People don’t want to have to deal with fixing things up and are willing to pay the asking price in most cases if the house is ready to go. Even small updates and fixes to your home can make a big difference in how homebuyers view it. To prepare your house for sale, start by decluttering and cleaning the house. You should also work on increasing curb appeal by doing things like painting the front door, fixing a broken window, or putting a security camera system – these are small things but will grab people’s attention. You want to make sure your home is “showroom ready” for buyers.
#5 Include a Coronavirus Clause
Home purchase agreements usually outline penalties for not meeting deadlines or for canceling the deal. Now, many real estate agreements include clauses to protect buyers or sellers in case they have to delay or cancel due to coronavirus-related issues. According to the National Association of Realtors, these addendums may address things like the unavailability of inspectors or appraisers, a buyer’s inability to travel to sign documents, or business or government closures. So if you’re selling you home during the COVID-19 pandemic, make sure your contract includes a coronavirus clause to permit closing extensions or canceling the transaction if you’re unable to follow through the sale without legal or financial repercussions on your part.
For more details, read our step-by-step guide to How to Sell a Home During COVID-19 Lockdown.
The Bottom Line
Is it a good time to sell a house now or should I wait until the end of the coronavirus pandemic? As mentioned, selling your home during these times is a personal decision and a number of things should be taken into consideration. If you’re not desperate to sell, then you probably could afford to wait. On the other hand, if you have a specific reason for selling your home now and don’t have the luxury to take a wait-and-see approach, then it could pay to move forward with your listing – with caution, of course.
For the best insight on how COVID-19 is affecting your local housing market, we suggest reaching out to a top real estate agent in your area. Top agents track daily updates and developing COVID-19 regulations. If you’re still asking should I sell my house now, an agent can help you determine whether your home is marketable at this time, answer any questions you have, and accommodate any special needs. For more information on the impact of COVID-19 on the US real estate market and how sell real estate during these uncertain times, read our blogs on Coronavirus real estate trends.
