Can I sell or buy a home during shelter in place?
YES, you can sell and buy a home during shelter in place! Here is a high-level view of the different elements around real-estate as of recent.
MARKETING:
We have multiple options for marketing homes with shelter in place, and more options as rules relax. Virtual tours, both prerecorded professional and an agent walk through. I attend online broker tours twice a week where properties and pricing and market conditions are discussed with in our local agent community. Digital marketing presence has increased, and so have the number of homes being marketed within the brokerage community without ever going on the open market. Contractors, stagers, gardeners and photographers are all now allowed to prepare homes for market in our local counties!
FINANCING:
For buyers it’s more important than ever to speak with lenders and get your pre-approval process completed. In this market, many listing agents are requiring a copy of a pre-approval before allowing the buyers agent to show their listing.
Many appraisers are currently not accessing the interior of the home, they do a drive by or a desk top review, consult the public records and call agents for information on recent sales and the subject property to help assess the value. Some lenders are waiving appraisals.
SHOWINGS:
Open houses in the East Bay are currently a thing of the past. Prior to showings most agents require waivers to be signed acknowledging risk factors due to COVID-19 and for the buyers to provide the signed disclosure cover along with a lender letter or proof of funds. In other words, buyers need to be serious!
PRICING:
Know that pricing strategy has shifted dramatically. With limited availability to see homes buyers and agents want to focus on properties that are priced within the buyers capacity. The majority of homes are being listed closer to what the sellers expect and will take, or they are declaring at least a bottom line and a range.
INSPECTIONS:
The recent norm in the East Bay has been for sellers to provide inspections. In competition buyers are still writing with few or no contingencies. For the Oakland/Berkeley areas this is frequently the norm even during shelter in place. Inventory is low, there are serious buyers out there. A decent percentage of homes are still getting multiple offers.
ESCROW:
Regular legal updates and forms are being provided by the California association of Realtors to give principles options on how to address Corona virus related issues. A variety of circumstances could adversely affect an escrow including financing, investigation and health related issues. Many contracts are written allowing for potential delays.
Days on the Market…the chart below indicates a faster market than last year for homes going into contract.Buyers should not expect to hang around and wait if they really want to get into contract! “Transparent” pricing means sellers often take offers after a few days.
The chart below shows the April median price of SOLD homes almost unchanged.
SELLERS:
Sellers should consider if they are ready to sell now, dealing with what we know, or want to roll the dice and wait for the unknown.
They may want to consider their price range and location and overall desirability of their home.
The best homes in the highest demand locations tend to do well in any market.
Many resources but not all are now again available to help prepare homes for sale. Be prepared for safety related COVID disclosures and
precautions and guidelines during the prep and sale period.Most buyers in this market are expecting a discount in anticipation of future declines in value and the fact that an unsettled market carries additional risk.
Sellers will succeed if their expectations are closely aligned with the buyers.
BUYERS:
Buyers should carefully consider whether it makes sense to move at this time.
Most importantly, they want to be rock solid financially and motivated to move. For some, the timing is good, they have the time to look and may already have a body of market knowledge behind them.
More than ever, buyers need an experienced realtor for advice. Listing agents want their sellers in contract with solid partners who can navigate through a potentially bumpy transaction.
Financing requires regular check ins. Underwriters can update guidelines. Buyers should have a safety net if their financing is in anyway borderline.
Do not expect to get into contract with an amazing deal!
There are plenty of buyers with solid jobs who are ready to compete on little inventory and knowing they are not buying at the top of the market is reassuring to many.
As always, I’m happy to be a resource for those considering a move and to offer advice in the current environment!
- Jackie
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