Mortgage rates have fallen to a new all-time low.
After reaching a record 3.29% in early March, the 30-year fixed-rate average dipped to just 3.13% in June, according to Freddie Mac. The coronavirus pandemic is suppressing interest rates like few things before it. Will interest rates go lower? They might. But they could also shoot up if the economy recovers faster than expected. Why not grab an all-time-low rate while it’s available?
Questions Sellers Have About the Current Market
There are so many questions and concerns amid the Covid-19 coronavirus outbreak. The real estate market is especially hard hit and sellers are concerned. Real estate at its core is a people business. It relies on person-to-person interaction and the coronavirus necessarily limits this type of contact. As the spring selling season gets started, home sellers will have many questions. It’s important to acknowledge their concerns and to offer practical advice and concrete information to help sellers make the best decisions for themselves and their families.
The Top FIVE Concerns
Should I still try and sell my home?
Of course, there are many aspects to this question. First and foremost, the health concerns of the seller’s family have to be taken into consideration. Unless absolutely necessary, the elderly and those with underlying health issues should not allow unnecessary people into their homes, including buyers and agents. If the household is essentially healthy and is not considered high-risk, then this could be a great time to sell. Consider the advantages of lower inventory coupled with low-interest rates. As listings become rarer, the remaining inventory will get more attention, which could create better offers.
Is it safe to have people come through my home?
This is certainly a concern, but there are practical steps you can take to ensure safer home showings. See below.
What can I do to protect my family during showings?
Protect the home, family, and visitors alike by taking the following precautions:
- Keep hand sanitizer at the front door to offer buyers and their agents when they enter the home.
- If there is a guest bathroom, keep disposable hand towels and soap for guests to use and ask the showing agent to request all visitors who visit the bathroom use them.
- Offer disposable gloves and provide a receptacle for the used gloves.
- Limit the showing days and hours so you can properly clean between showings.
- Have cleaning wipes handy. Request that agents wipe surfaces, door handles, and banisters that have been touched during the showing.
- Ask your agent to offer virtual showings or to host virtual open houses
What happens if my buyer loses their job?
Most real estate contracts include a contingency for the buyer loan approval and funding. Now, more than ever, it’s critical to keep that contingency in place. In the unfortunate event the buyer loses their job or can no longer qualify for the loan during the contingency deadline, the parties typically cancel the contract.
Will I get a higher price if I wait to list my home?
The truth is no one knows. We don’t know how long or short the crisis will be and we don’t know how the financial market will weather the outbreak. While this is a question the seller will ultimately need to decide, the old adage about a “bird in the hand” is important to remember.