Timing is Everything – Whether to Sell in the Age of COVID-19
If you were wondering if NOW* is an excellent time to sell given the Coronavirus Stay-At-Home orders, the answer is YES.
TOP 5 REASONS TO SELL NOW – Spring 2020 The Age of Coronavirus
1) Low Inventory – Usually, springtime is when we see increased demand for homes. The hills are green, the flowers in bloom. I hear more birds singing. I see more beautiful wildlife sightings than ever before due to less traffic on the roads and in the parks. Life in the ‘burbs right now (I am in Old Agoura) is especially inviting.
2) Low-interest rates on loans: At close to 3% on a fixed-rate 30-year residential mortgage and under 4% for even a jumbo loan, buyers have excellent borrowing power. Low loan rates help keep values stable for the time being.
3) IRS extends 1031 Tax-Deferred Exchange Deadlines; If you sell an investment property now, the IRS says you can have until July 15 to identify a replacement property. Anyone who sells their property in May 2020, will get a few weeks longer than the statutory 45 days. If Stay-at-Home orders continue, there may be further time allowed for 1031 exchanges.
4) Over the past few years, the industry has optimized virtual showings and paperless transactions. COVID-19 has normalized the requirement that buyers qualify before setting foot in a seller’s home. For sellers who abhor tidying up before every time a buyer makes an appointment, this market is a dream come true.
5) People are on the move. We have more time on our hands, and real estate activity is up. People are taking early retirements, starting families, adopting pets. I specialize in horse property. People who grew up with horses are rediscovering the joys of horse ownership. They want to adopt a horse or goats or chickens, or all of the above, and they need a place to keep them. All this is good news for sellers.
5) Buyer demand is high. In addition to reasons #2 and #5 above, many folks are not comfortable with stock market volatility. When their stocks initially lost value last month, investors may have already pulled out of the stock market and have that cash to make their money work for them in real estate. There are still tax advantages and relative stability to homeownership.
*Conditions are subject to change. Rather than wait until they do, it is best to act now and call us today.
Nona Green is a 42-year veteran real estate broker. Her team at Nona Green & Associates #sellsafely. They have the experience and know-how to create a smooth and successful experience for their clients. Nona, Lisa, Steph & Sam can be reached at 818 292-8860.