| Diamond Realty Brokers
How the coronavirus will impact the real estate market
There’s no question that the coronavirus pandemic will have an affect on us all. What we know for sure is that no one industry will be left behind.
Anytime there is a significant loss in jobs, the number of residential buyers will decrease in some markets. However, residential & commercial investors view this as a buying opportunity. There are always opportunities in real estate chaos. The fact of the matter is that you can use this time to educate yourself on solutions best suited for your household or business. Consumer confidence will be a variable in the economy as the job market affects housing.
Properties that are priced to sell, neutral in colors and well maintained will less likely see a major change in price because the demand for highest & best value will be in a better position than an average property that’s not well maintained. In other words, everything has to properly display & convey it’s value, even your property.
Even during a global quarantine, buyers from all over remain on our websites everyday looking for properties whether homeowners or investors. Prior to the 2008 recession, we were fortunate to develop an online infrastructure that supports virtual operations. Visit GAMLS statistics to compare month to month units sold by categories.
Commercial Real Estate
Although our Agency currently has more commercial real estate volume impacted versus residential since quarantine, it’s too soon to determine the impact as private showings are still taking place. Losses & gains will continue to fluctuate on a weekly basis for some time.
For example, one of our repeat clients that invests in Medical plazas in Nashville TN, may reduce the number of acquisitions in the future because the amount of private medical practice tenants in the plaza may decrease for COVID-19 concerns especially in the dentistry practice. Many business owners will need to re assess their business risk.
There seems to be a lot of uncertainty about whether the country is in a recession. Many consumers are unaware that numerous economists predicted a recession for 2020 in 2019.
However, the recession prediction from economists was based on the 10 year treasury GDP analysis not the housing market or the coronavirus. See this Forbes article.
Hopefully enough small business owners will benefit from the economic relief that’s available to business owners who have been impacted by the coronavirus pandemic.
Feel free to schedule a consultation if you think you need to list or relocate your commercial business.
We are a licensed Business Brokerage in multiple states & co-op with other Business Brokers across the U.S. and abroad.
Guaranteed Cash Offer
Prior to the coronavirus pandemic, we’ve seen an increase in homeowners who accept online offers on their home in an effort to sell without showings or listing their property. Although sellers can still request a cash offer on their home from our website, listing your home traditionally will still get you the highest & best offer on your home.
In other words, listing your property on the market will open the listing to more prospects that will compete for the value of your home so you’ll get a better return on your investment.
Taking the faster private offer is only best if you have time constraints or personal circumstances that outweigh the benefit of patience. The benefit of patience when priced to sell is always a win for the seller.
We’ve always been on top of technology. We have solutions to sell your home online with premier 3D Virtual Reality Tours & Virtual Staging when necessary. We have sold affordable homes to million dollar listings traditionally without showings because we invest in 3D VR technology to help your bottom line. We’ll simply give the buyer a reasonable due diligence period to physically visit & inspect the property or they may cancel within a reasonable timeframe. Feel free to download our virtual marketing plan to list your property.
Sellers receive a detailed report followed by a guaranteed cash offer on their home typically within 24 hours. Due to delays from the coronavirus pandemic, please allow a few more days for the written offer in some states. Feel free to schedule a phone appointment with us online for more details.
Whether you’re thinking of selling or not, this is a good time to do simple maintenance on your property. Get your property clutter free by donating or throwing away things you haven’t used in the last 24 months. The kitchen countertops are the first place that’s usually over saturated with unused items or that need to be transitioned to the pantry or a designated area for items in question. You’ll be surprised how many things add up in there.
Refresh your paint by touching up frequent traffic areas like the entrance, kitchen, bathroom & family rooms. If your property has deep rich colors, now is the time to neutralize your color tone or at least start planning which neutral colors you’ll choose. When in doubt, a fresh white palette can make a dated property feel updated. Visit Neighborly or virtual estimates.
If you need to finance repairs or minor renovations consider drawing from your home equity while you can. Lenders typically increase the loan requirements to obtain a HELOC or (Home Equity Line of Credit) during economic crisis. Not to mention, you’ll need to be employed or have filed your last 2 years business tax returns to draw from a HELOC.
If you’re not thinking of selling & have been financially affected by the pandemic, you can request a forbearance or hardship solution from your lender. Consult with your current lender for details. If you don’t qualify for mortgage relief, short selling your property may be an option.
First, your lender would need to approve you for the short sale. You can request a short sale application from your lender. However, make sure you have visited all other mortgage relief or forbearance options with your lender first. Check the Federal Housing Administration for more information.
Feel free to request a free detailed report on your home value and get an update on recently sold properties in your neighborhood.
Low Interest Rates
Low interest rates will help buyers qualify for a higher sales price and help their debt to income ratios. However, the minimum credit score to obtain a loan is likely to increase.
For example, the sales price of $500,000 x 4% rate (Principal & Interest) payment is $2000 a month.
Sales price of $500,000 x 3% rate (Principal & Interest) payment is $1500 a month.
For more examples, enter your sales price on our Mortgage Calculator.
NOTE: Property taxes & insurance are not included in this example. Interest rates are always subject to change daily.
Home Loans based on bank statements are not being accepted at this time due to the pandemic.
Home loans are limited to your W-2 income & Tax Returns. Buyers can request a mortgage quote online from our website.
If you’re unable to qualify or don’t have the required down payment, leasing a home with the right to buy (without being obligated) may be a good fit for you.
We receive many calls from consumers, asking how to become an Agent. Although our firm doesn’t hire new Agents, here’s a recommendation for an national online real estate school.
If you’re an experienced REALTOR seeking more leads & business to increase your volume. Visit our dedicated Agent Website for more information.
We hope that everyone & every business will become more efficient and produce better leaders as a result of this unfortunate time in our history.
AK & Associates DBA Diamond Realty Brokers is a certified minority & women owned small business.