How to sell your home after the Coronavirus?
“People will continue to need to sell and buy homes, what is changing is the way of doing it
and today, thanks to the technology that professionals use, it is possible”
Recently I have been talking with several clients living in Madrid, both sellers and buyers. One of them told me something that caught my attention:
“I have lost part of my money due to the investments I have in the stock market and I am still looking to buy, but I am reevaluating what price I can pay now”
This is a clear example of what many people on the demand side are experiencing.
Others, although they have not been affected financially, have preferred to postpone their decision to buy a house in these times of health crisis caused by the Coronavirus.
At the end of this article you will understand:
- How the Coronavirus has affected sellers.
- How to sell your house after the state of emergency passes.
- How will it affect the price of housing
- How the Coronavirus has affected buyers.
Supply and demand during and after the Coronavirus, what can we do?
We recently published an article where we analyzed how Coronavirus will affect a real estate area in very differente ways, including commercial premises, offices and homes. Without a doubt, it will depend on how long it takes us as a society to stop the spread of Covid-19 and how we react afterwards.
In the specific case of housing, several selling owners have withdrawn their properties from the market until further notice, but others do need to sell as soon as possible.
On the supply side, the first measure is to suspend visits until state of alarm decreed by the Government ends. Stay home unless you have an extraordinary reason.
When the alarm state ends
Before making any visits first:
Ask your real estate advisor to take a 360º virtual tour of your home.
For a potential buyer, viewing a virtual tour will allow them to get a clear idea of the design of your home before they see it in person. This will help limit the amount of traffic going to your home to only those buyers who have a serious interest in your property.
In case of visit:
- Make the visit with the minimum number of people possible.
- Keep the minimum safety distance of 1.5 meters at all times.
- Have material for hand cleaning, as well as disposable gloves for the visit.
- Clean your house before and after the visit.
In case of advancing in the negotiation:
- Use programs and technological tools to sign contracts electronically. If
you don’t know how to do it, ask your real estate advisor for help.
I want to sell my house, what else do I need to know?
During the state of alarm, houses cannot be visited, mortgages are not being granted either, and notaries can only sign negotiations that had already been agreed upon before the decree of the State of Alarm.
If you have the flexibility to defer the sale of your home, be patient and wait. If you need to sell for whatever reason, you are interested in knowing the following:
How will the Coronavirus affect the price of homes?
The level of impact that the Coronavirus will have on the economy in general and the real estate sector will depend on how long it takes us as a society to stop the spread of the virus. For some analysts, the indicator to know that we have already entered the exit phase of the pandemic will be when daily infections decrease.
Right now we have a scenario of ERTEs, businesses that close, layoffs and more, where
the income of many families has been reduced. This translates into a decrease in
demand, with its consequent impact on housing prices.
There will be a slight drop in prices, especially for own-use homes, followed by a stabilization phase and then the growth rate will return to the levels we had before the Coronavirus. In market analysis, we can visualize it as a U-shaped recovery.
To put it more concretely, the second quarter of 2020 will reflect a decrease in prices and a decrease in the number of purchases and sales, followed by a slow recovery in the third quarter and then we could close the fourth quarter approaching pre-Coronavirus levels.
And if I’m looking to buy a home, what else do I need to know?
In this situation, those buyers who are in secure jobs and who do not have risks of decreasing their income are in a favorable position because the coronavirus has put out of the market other buyers who have lost their jobs or reduced their sources of income. There is also another group of buyers who, although they have not suffered major economic consequences, have decided to postpone their purchase decision due to uncertainty.
There will be a window of opportunity because home prices will experience falls and those owners in need of liquidity will still sell.
People will recover.
People will go back to tapas.
People will go back to football games.
The children will return to their educational centers.
Things will go back to normal eventually.
If this article has helped you, leave us your comments and we will gladly answer you.