5 tips to consider when selling your house during the coronavirus pandemic.
What are the pros and cons of listing your home vs. selling your home to a cash home buyer?
2020 has been a rollercoaster ride of a year so far, and the real estate market has certainly experienced a shift. Although for now the market values have remained steady, the way people are buying houses has been impacted. Heraclitus, a Greek philosopher, has been quoted as saying “change is the only constant in life.” Right now we find ourselves changing the way we live our lives. Working from home, schooling from home, and keeping up with friends and family through video calls are things we are all working on adapting to right now.
Will this be a lasting change? Will it ever go back to the way it was? I can’t answer that question, but I can help navigate through the situation we find ourselves in right now.
Mortgage interest rates are low right now which has triggered a lot of buyers to pursue new opportunities. So if you had thought about selling your house, there are still a lot of buyers looking.
It gets better…
If you do find yourself in a situation where you need to sell your house, inventory is low. So chances are that when you do need to sell, there are buyers waiting and ready to pull the trigger.
Here are our top 5 tips to sell your house during the Coronavirus: selling with a realtor vs. selling to a cash home buyer
#1: Home values can change quickly during times of uncertainty
- Selling your house with a realtor – Going the traditional route will most likely have you working with a buyer using traditional financing (FHA, VA, Conventional financing). As a result of the pandemic, many lenders have changed requirements. Be sure to have your realtor check in throughout the process to make sure the file is getting through underwriting. Also, ask to make sure the lending programs have not changed.
- Selling your house to a cash home buyer – Since cash buyers are not using financing they are purchasing it without an appraisal and other lending guidelines. Once you agree on a price there is no other financing contingency standing between you and settlement.
#2: How to have your home prepared for showings
- Selling your house with a realtor – Selling a home the traditional way will have the buyers walking through your home, touching what you touch, etc. Is that something you can find yourself being okay with? If you have children, or those considered high risk in your family, how will you tackle ensuring the home is cleaned for their safety?
- Selling your house to a cash home buyer – Some companies will buy your home site unseen with photos or a virtual tour (more below)
- Expert Tip: Leave a sanitization box by the front door to require those entering your home to wear shoe covers, use hand sanitizer or wear gloves, and have sanitizing wipes or spray available.
#3: Consider your selling timelines
- Selling your house with a realtor – Selling your home traditionally can take some time in most markets. With the pre-listing phase of staging, getting photography, plus days on market when listed. Once you do accept an offer on your home you’ll then go through the closing process which will take an average of 30-45 days. Times of uncertainty, market changes, lending changes, etc can all impact longer selling cycles
- Selling your house to a cash home buyer – If you chose a cash contract, or an as is sale with an investor they are typically closing in 14 days or less.
#4: Prepare for additional coronavirus paperwork
- Selling your house with a realtor – Many states and brokerages are now including a coronavirus clause that allows a buyer to cancel a contract without any repercussions. Meaning they would not lose their earnest money deposit (EMD). That along can cause a lot of uncertainty when selling your home. What if they simply change their minds?
- Selling your house to a cash home buyer – This typically does not apply.
#5: Leverage Technology to Minimize overall Risk
- Selling your house with a realtor: professional photography, 3D tours, virtual tours. Will a traditional buyer accept this? Even if they do, an appraiser will most likely not.
- Selling your house to a cash home buyer: Some investors will buy your property site unseen. Take some photos with your iphone, shoot a video and send it over
So, what should you do? Sell now or wait it out? Well for now, inventory is very low in most markets across the country. Which means that if you do need to sell, you could likely have your pick of buyers. Another bonus is that values are remaining steady… for now at least. That could change at anytime. We really have no idea what the fall and winter markets will bring. So if you do need to sell, now is still a great time to do so.
If your home is in mint condition, and you’re looking for a high end price then selling it on the market with a realtor is your most likely your best bet.
However, if your house needs work or your circumstances are those which have you needing to sell your house fast then working with a cash home buyer who is local to your market is most likely going to be your best bet.
Questions about selling your home? Contact us today for a free consultation!