Not many homeowners are happy with the thought of selling their homes. But a lot of factors are driving them to put their homes on the market amidst the pandemic. Unlike the popular belief, demand for housing is still high, despite the plummeting economy.
Selling a home is already tough, and the “new normal” scenario of social distancing is making it even more difficult.
However, with technological advancements flourishing in every sector, real estate is not far behind. It’s taking advantage of the new-age tools to look around the bend to get back to their regular routine quickly.
For instance, with coronavirus still impacting the country in many ways, a new addendum came into effect to surpass the challenges brought upon by the pandemic. Don’t have any idea as to what we are talking about? Keep reading, and you’ll know.
1. Minimalistic Use of Essential Real-estate Services
With the new CAR listing agreement, one can easily prepare a home to sell on the market. But as per the guidelines, one must adhere to the sanitation rules when showing others’ property. This is why digital tools like videos, Gifs, virtual staging are gaining more attention.
The revised May 4 Shelter-in-Place order allows continuity of residentials or commercial transactions. Furthermore, it will enable service providers such as inspectors, photographers, or videographers to visit the property one time.
2. Showcasing Property Gone Virtual
It’s essential that you use technology-based tools that allow you to engage with people in California that buy houses quickly. Zoom is by far the most convenient way to do that.
Whether your home is vacant or is occupied, you can show the property without compromising the safety.
However, if a buyer wants an in-person inspection of the house, you must get a waiver (PEAD) signed for all in-person showings to protect yourself from any liability.
3. There is a Change in The Pricing Values
It is no surprise that the pandemic affected the buying capacity of potential buyers. However, that’s only one side of the coin. Many buyers have cash or private funds to invest in real estate as a strategy to protect their assets.
Undoubtedly, this turbulence can’t undermine the long-term advantages of owning a home in California. Plus, the current interest rates are allowing buyers to purchase a property at a lower cost. So, it is vital to keep an eye on all the possible transactions that can turn out to be successful.
4. 1031 Exchange Timeline Extended
To those who are still new to the real estate market, a 1031 exchange is a swap of one investment property for another.
According to the Notice 2020-23 released on April 9, 2020, those who are involved in a 1031 exchange will get some relief from 45-day identification and 180-day exchange period deadlines. For instance, the extension will automatically postpone to July 15, 2020.
Now that we cleared about the new policies, there are a few queries that must be answered.
Should You Sell Now or Wait Until SIP Gets Lifted?
Remember, this is the best time to put your property out on the market. Why? Because many people are pulling their homes off, and the inventory is lower than ever.
However, real estate is at its all-time high even more. And with a dearth of houses, one can easily stand out when selling their property.
So, it’s high time you prepare your property by decluttering, deep cleaning, and depersonalizing.
Can You Sell a House Even if It’s Occupied by Tenants?
The answer is, “Yes.” Since you can now show your house using digital tools or in-person, sellers can easily list their property for selling.
All you need to do is coordinate with your tenants so that they are present when you are showing your property to potential buyers.
However, transactions might take around 40 days that was earlier, approximately 24-30 days. So, that might be a little frustrating for now.
What to Expect?
One should not forget that we are suffering from a health crisis, not an economic one. That’s why the economic recession deviates from the ideal recession that one saw in the year 2008.
However, the lasting effects are still unknown, but once things get back to normal, it’s going to be a buyer’s market. Plus, many distressed home sellers might use their house as a mortgage to navigate their current financial situation with the wave of unemployment.
That’s when buying opportunities for investors who have finances multiplied. So, there will be a rush for showings and closing down on a property according to their financial needs. One can expect a spike in the real estate market in the coming months.
One can expect a shift in the housing market. For instance, realtors will continue to use 3D virtual tours or using 360 cameras to capture images of every room. One can also see a surge in remote contract reviews or digital signatures.
The real estate market was on a roll before the coronavirus hit the U.S. The drop in sales in May was the steepest of all times. However, after that, the market is recovering and is continuing to do so in the coming year as well.
This is happening because the industry is transforming its business model from traditional ways to digital mode. Applications like FaceTime, Zoom, and other mobile apps allow buyers and sellers to get on with their everyday work quickly.
In fact, it is expected that residential real estate will fare far better than the other. And with so many changes happening around, one can easily take advantage of these market disruptions for the better.
And with the new rules in place, things are quickly getting back to normal. For instance, buyers must book an appointment to look at a property. They might have to sign waivers for property inspection. It does not end there. Masks and sanitizing wipes will become the new normal. And as per the trends, it’s expected to stay longer than anticipated.
So, if you are a buyer/seller, make sure that these added complexities don’t make you reluctant to move forward. Evolve your practices to align these technologies and streamline your processes for the greater good.