The Coronavirus Pandemic has brought about significant changes in the way we live, work, and rest. Lockdowns, telecommuting, and vacations at home have become the new norm. These changes have also had a profound impact on the real estate market, which plays a crucial role in economic growth. Selling your house for cash quickly is now a realistic goal, especially if you seek the assistance of professionals. In this article, we will explore strategies and insights on how to sell your house fast for the maximum price, even in these uncertain times.
The Impact of the Pandemic on Real Estate
The economic recovery following the pandemic recession has generated a surge in demand for real estate. However, this surge is accompanied by uncertainty due to the rising incidence of new coronavirus strains and the possibility of new restrictions. Despite this uncertainty in the broader economic landscape, real estate investment has reached record levels, surging by 50 percent compared to a year ago.
Real Estate Sales during the Pandemic
Both the U.S. and European markets have experienced a significant uptick in demand, leading to rising real estate prices. Properties are being snapped up faster, exacerbating the supply shortage. People are now investing in homes in suburban and even rural areas. The pandemic hasn’t caused a collapse in home prices abroad, and during the second half of 2020, many countries experienced high and sometimes frenzied demand. This demand surge can be attributed to those who couldn’t purchase homes during the initial lockdown returning to the market. Additionally, the pandemic has ushered in new housing requirements, and historically low mortgage rates have played a significant role.
Economic Factors
It’s essential to note that last year’s crisis was not purely economic in nature. Most potential buyers haven’t seen a significant decrease in their finances. This is due to the fact that developed countries implemented unprecedented levels of economic support during the first wave of the pandemic. Low-interest rates and affordable mortgages, ranging from 1.5% to 2.5%, have further fueled high demand.
The Housing Market during the Pandemic
The pandemic had varying effects on the housing market. The rental market, being more flexible, saw a swift 10-20% drop as renters experienced reduced income and couldn’t afford previous rental rates. Conversely, the rural rental market saw a significant increase, with some premium properties witnessing several-fold price hikes.
Interest in buying homes also surged, but sales growth is expected to be relatively modest, in the range of tens of percent. This limitation is due to declining incomes, and even the potential for remote work cannot address the primary issue hindering rural housing markets – the lack of infrastructure. In these conditions, price growth is only feasible in successful individual projects, and the market, as a whole, is expected to stabilize.
Preparing Your Property for Sale
To attract potential buyers and enhance the chances of a swift sale, there are specific preparations you should make, suitable for both online and in-person viewings:
1. Declutter and Clean
Ensure your home is tidy and clean. A clutter-free environment allows viewers to focus on your home’s features rather than distractions like dirty dishes or scattered clothes.
2. De-Personalize
Remove personal items like pictures, drawings, children’s crafts, and personal notes. This helps prospective buyers envision themselves as the owners of the property.
3. Pet-Friendly Considerations
Eliminate signs of pet presence to make the property appealing to those with allergies or concerns about pets.
4. Emphasize Cleanliness and Light
A clean, impersonal, and well-lit space is highly appealing. Take advantage of lighting fixtures to brighten the space during evening or dusk showings.
5. Plan the Viewing Experience
When showcasing your home, whether with or without a realtor present, plan a structured viewing route. Highlight the benefits of specific rooms or areas and tailor your presentation to potential buyer interests.
6. Personalize the Experience
Pay attention to buyer preferences and concerns. Building rapport and finding common interests with your guests can enhance their connection to the property.
Market Trends: Low Bids and Shortage of Supply
The combination of increased demand for homes, low mortgage rates (which have dropped from 4.5 percent to as low as 2.65 percent over the year), and a limited supply has led to a rapid increase in real estate prices in the U.S. The median offer price for homes has surged to $346,000. Mortgage rates have remained below 3% since July, and as of January, they have slightly risen to 2.77%. According to Freddie Mac, the largest mortgage servicer, this rate is the lowest in 50 years.
In conclusion, despite the challenges posed by the Coronavirus Pandemic, the real estate market has demonstrated resilience and continued to thrive in many areas. With the right preparations and strategies, you can successfully sell your house for cash at a competitive price, taking advantage of the current market conditions.