Homeowners are asking, “Should I Sell My Home During The Coronavirus?”
Spring season is usually “prime-time” for home selling, but this spring season is a whole new ballgame.
With the coronavirus intensifying and pushing the economy in a tailspin, many homeowners are asking the same question: Should I sell my home during the coronavirus pandemic, or wait?
Whether you’re in a situation where you NEED to sell your house, or if you’re just considering putting your home on the market soon, here are some factors to consider during this time of crisis.
What happens to home prices during an economic downturn?
It is no surprise that homes tend to sell for lower prices during a recession. Roger Ma, a New York-based financial planner says,
“If the market is softer and there’s decreased demand, the price that you may be able to command may be less than what you have imagined. It could be less than what you paid, and the net amount that you receive could be less than the amount that you have put into it.”
Is selling now good timing for you?
Because recessions bring in fewer buyers and lesser home prices, if a recession hits and you don’t absolutely need to sell your home during the coronavirus, it might be better to hold off until the economy improves.
Nonetheless, selling a home may be a must for some homeowners: they may need to move due to a change in their employment situation or family circumstances.
Either way, it is less about timing the economy right and more about making a personal decision.
“Try not to focus on the market timing; focus on your own timing,” Ma says.
Are you planning to buy at the same time?
If you’re buying a new home at the same time you’re selling, the financial gains and losses of a recession may even out.
Oftentimes, if you’re selling a house during a recession, you might painfully realize the lower price. But on the flip side, if you’re planning to buy something, you will be receiving that lower price, too.
If you must sell your home, Fiona Petrie, executive vice president of Re/Max Integra, says moving that money to other real estate is the wisest investment.
“If you’re selling in a suppressed market, and you’re moving your money into the same kind of market elsewhere, it is not a bad time to sell. Real estate is tried and true, and I don’t know if there is a better investment out there.”
Pricing your property during a recession
During a recession, Petrie says, the reason a house might not sell usually has to do with an inflated price.
“Sellers need to be realistic on what the value of their home is, and they need to put a home to the closest projected price as possible,” she says. “If the home is priced properly, it will sell.”