10 Tips for Successfully Listing during the Pandemic
In the world of real estate, spring is invariably considered the busiest time. After emerging from winter, people are sprucing up their homes to list on the market, and people looking to buy are anxiously waiting to get settled before summer hits. This spring, however, is obviously quite a bit different. With the COVID-19 pandemic still limiting businesses, jobs, and free movement, it’s understandable if you’re feeling in the dark about whether this spring is still a good time to sell your home. Ray Gernhart of Ray Gernhart and Associates addresses that very topic here:
If you’re thinking about listing your home, here are ten tips to help ensure you do so safely and successfully.
Tip #1: Know That You Can List Your Home for Sale
One of the biggest hurdles during this pandemic is the lack of concrete information and certainty. Pretty much everything feels like uncharted waters, and it can be difficult to know whether certain activities are even allowed. So, first things first, know that real estate has been deemed essential business. If you want to list your home, you can. Realtors are still working for buyers and sellers, and while the landscape might look a little different than it has in the past, it is still a fully functioning industry. Read here to learn more about what selling your home during the pandemic looks like.
Tip #2: Don’t Wait to List for Fear Showings Are Cancelled
Showings are arguably the most important part of the home-buying process. It’s when buyers can actually see how a home looks, determine how much natural light it has, and ascertain innumerable other important details that go into the buying decision. It’s also an opportunity to get a sense for intangible factors that pictures and videos can’t convey, such as the feel of the neighborhood.
If you’re hesitant about listing because you think this essential piece of the process is cancelled, put your fears to rest. Physical showings are still happening. Sure, there’s a lot more hand sanitizer involved than ever before, and potential buyers might be doing their oohs and aahs behind masks, but Realtors are still bringing prospective buyers to available homes. To limit exposure, some Realtors and sellers agree to only show to serious buyers (those with mortgage preapprovals or cash offers), but as a step in the buying process, showings are still happening.
Tip #3: If Possible, Show a Vacant House
People are still understandably concerned about COVID-19, and those concerns are valid. From a logical standpoint, visiting a home that’s currently occupied increases the risk to anyone who comes to see it. Therefore, if it’s logistically and financially feasible, vacate the home after putting it on the market. More people will feel comfortable about visiting a home if they know nobody is currently living there, and the more prospective buyers who are willing to visit your property, the greater your chance of selling at a desirable price point.
Tip #4: Use Technology to Your Advantage
The fear for home sellers, of course, is that they’ll list and nobody will be interested in buying. It’s true; widespread job uncertainty is definitely going to stop some people who would have otherwise jumped into the housing market this spring, but for those potential buyers who were able to keep their jobs, the enticement to buy a home now is high. Mortgage rates are still incredibly low, and terms are favorable for those who can qualify. Yes, the number of potential buyers might be lower, but those still on the lookout are highly motivated.
Tip #6: The Only Certainty Is Uncertainty
Under the best of circumstances, the housing market is still unpredictable at times. Experts do their best to make educated guesses, but their predictions are just that…predictions. Throw in the uncertainty of the current global situation, and it’s really anyone’s guess how much or how little the housing market is going to feel the ramifications of this pandemic.
If the market does slow and home values drop, it would be better for sellers to put their homes on the market now, when listing prices are still essentially unaffected. That being said, selling a home is a huge life decision, and you never want to rush into anything out of fear or a reactionary response. If, however, the conditions are right for you to sell regardless of the pandemic and it’s objectively the right time and decision for you and your family, it could be the wise financial choice to strike now rather than riding the virus out.
Tip #7: Expect Closing to Take Longer Than Usual
A number of factors could slow the closing process. Preapproval for buyers could take longer due to job uncertainty. You could wait longer for repairs while readying your home for listing. Some professionals, such as home inspectors, might be working in a limited capacity. While your house sale could go through unimpeded by the pandemic, be prepared logistically and financially for a longer closing window.
Make sure you’ve also thought through your living situation between homes. If, for example, you were planning on staying with your parents while waiting to move into your new home, you might need to rethink that plan if your parents are at high risk. Hotel options could also be limited right now. Again, this might not apply to your home sale, but it’s always better to have a contingency plan that you don’t end up using than to find yourself needing one.
Tip #8: Expect “Days on Market” to Mean Less
Days on market (DOM) has long been a metric potential home buyers use to help determine if a property has something wrong with it. In hot markets, if a home sits for much longer than a week, many potential buyers get scared off, assuming something must be wrong for it to still be available. In this climate, that metric is meaning less and less. Many potential buyers today understand that myriad factors are affecting home sales right now, and they’re not all directly related to the quality or value of that home. In fact, in some markets, DOM has been removed from listings altogether.
Tip #9: Inventory Is Low
Across many markets, Realtors are seeing more interested buyers than available properties. When inventory is so historically low, it’s a recipe for sellers to do well. When buyers have to fight over what’s available, the chance of a bidding war increases, and buyers are more willing to overlook small details that might torpedo a deal in a more buyer-friendly environment. Say, for example, your countertops are in desperate need of revamping. If the market is full of available homes, someone might be able to step right into a fully remodeled, modern home at a desirable price point. When there’s less on the market, though, people become willing to take on these kinds of tasks after the sale.
If the only thing holding you back from listing your home is a fear of this real estate landscape, it could actually be highly in your favor.
Tip #10: Using the Right Realtor Is More Important Than Ever
In this climate, finding the right real estate agent is essential for sellers. The truth is it’s not the perfect time for everyone to sell, and if you’re unsure, the best tactic is to lean on the experience, expertise, and guidance of a seasoned Realtor. Talk through the chances of your specific property selling in this environment and in your market. Find a real estate agent with the integrity, honesty, and experience to make a wise recommendation based on your asking price, marketability, online presence, and other relevant factors (e.g., whether the home is vacant or occupied).
These are unprecedented times, and it’s hard to know what real estate moves make the most sense. Luckily, you have a friend in the industry you can talk to. If you have any questions about potentially selling your home, just Talk to Ray!
