Coronavirus hasn’t been a pleasant surprise for anyone since we discovered the first case in the country. Nationwide stay-at-home orders were issued, and the pandemic so far has resulted in the loss of 40 million jobs. Many industries have started working partially, but it seems like the situation is going to continue.
At the beginning of March, there were hundreds of homes expected to be listed on the MLS. Buyers were making plans to purchase a home as the spring season approached us. Plans were halted because of this sudden viral disease, and many of us are still wondering about our programs. Buyers and sellers are concerned about market conditions. They are worried about the pricing structure as the unemployment ratio has already reached great depression levels. That’s going to impact the economy and the purchasing power of prospective buyers. Banks are shrinking their ability to lend money. People can’t invest in a house when jobs and mortgages are not available.
Everything Seems So Confusing
We have been getting varying information from different resources. That confusion is making things worse as we don’t know how things will turn out. Many people are going by the rule, “wait and see how it turns out.” The practice may work for hard-hit industries, but it’s not a good option for the real estate sector. If you’re planning to buy or sell a home, you should better take action now. So far, the situation has worsened with every passing week. Other economies may have a different position, but the US economy is fragile because of the funds that were poured into the market. Our national debt is out of control, and life in a year or two seems unpredictable. The next few years are going to be different, even if the current recession brings temporary loss.
What About the Real Estate Market?
Homeowners have been questioning the future of the real estate market. Thousands of sellers pulled off MLS listing while they were preparing their homes for sale. Now, what should be your course of action considering new restrictions and problems? Is it possible to sell a house?
It is still possible to sell a home, although it is difficult. Open house events are not possible and they should be discouraged even if they are allowed.
What Price Will I Get for My House?
For many sellers, the decision to sell a home is dependent on this question. How will the situation turn out? Will I make a profit by selling later?
No one can predict the future, but we can provide some guidance.
Calculate the fair market value of your property. Let’s say the average price of similar homes in your area is $200k. It can be a rough estimate of your home’s value. Next subtract 10% from that number. You’re subtracting the cost of selling your home, which includes commissions and closing costs. What repairs are needed to sell your home? Subtract the respective costs and see the number you get. Will you receive that price if you sell your home now? If so, you should better sell your home now for a fair cash price.
Another way is to look at the prices of the last 50 years while considering the inflation rate. (Do adjust the dollar value for inflation rate). Let say the average price of your home in last 50 years turns out to be $180k, but right now, it’s priced at $178k. That means you’re close to the long-term average, and you can sell your home without a loss. Waiting too long can result in a loss because prices decrease after returning to their long-term average.
Would you like to sell your home for a fair cash price?
Contact us. Fast Home Offer Utah is a real estate solutions company based in Utah. We are buying houses during Covid-19, and we can pay a fair cash price for your home in its current condition. No need to repair the property and no need to list the house on the MLS. We can buy your home with zero or minimum people entering the area.