Should You Sell Your House During The Pandemic?

The pandemic has disrupted and continues to disrupt many markets. Did you have plans to sell your home when the coronavirus hit the U.S.? Now, you might be wrestling with the really tough decision about whether to move forward — and when.

Some potential sellers are frozen in place, constrained by the pandemic and hoping for improvements in the coming months. But not every seller has the luxury to take a wait-and-see approach without making serious trade-offs. Some may be driven by a job relocation, a growing family, or other life events.

Although selling a home in 2020 and beyond is going to look a lot different than it used to, people haven’t stopped selling houses altogether. And considering that the lingering effects of the virus could last into 2021 and beyond, we can’t expect an “all clear” signal anytime soon for putting out that “for sale” sign.

Find an agent who can help you sell safely

Connect with a professional using the best tools, technology, and practices to navigate COVID-19. The pandemic requires a new way of selling which includes precautions, virtual tours, cleaning and more. All agents should be requiring their buyers to wear masks and gloves. They should also facilitate how many surfaces are being touched and how to safely show the home. You need an agent who can find a way to enforce these regulations and prioritizes your health as well as selling your home.

Real estate analysts predict that COVID-19 will most negatively impact the luxury housing market. Buyers at higher price points who have large holdings in the equity markets may postpone large real estate transactions as they wait for stocks to recover from the market plunge.

Online presence and marketability

According to HomeLight’s Flash Poll for the week of April 1, 2020, 84% of agents have shut down open houses and 45% are restricting or eliminating physical showings. That means your home must shine in online listing photos and videos to convince buyers to leave their house to view it in-person. Many photographers are now offering walk-through videos as well as photos. A professional video will make your home shine. Walking around with your iPhone and shooting a video of your home will not have the same impact. Hire a professional and it will make all the difference.

Open houses are limited during the pandemic

Agents are steering away from open houses. With the requirement of keeping 6 feet apart, an open house just isn’t a feasible option. Also, you don’t want to crowd your home with people and hope that everyone is following the rules. Instead, find an agent that is going to advertise your home significantly so you can depend on appointments only or virtual showings.

If you decide you want to have an open house you will have a lot of steps to take and variables to manage. While disinfecting surfaces and adhering to social distancing practices reduces your household’s risk of coming into contact with the COVID-19 virus, they do not eliminate it. You should discuss the home sale process with members of your house before you list. You may need to adjust visitor procedures or delay your home sale depending on their response.

Few will judge if your home sits on the market

In normal circumstances, homes that sit on the market above an average number of days are at a disadvantage. Homes with a high days on market count can carry a stigma — buyers wonder if the property has something wrong with it or if it’s priced incorrectly.

However, present buyers and buyers’ agents are considerate of COVID-19’s impact on the market so they are unlikely to look down upon homes taking longer to sell. Some MLS systems are even suspending or pausing the accumulation of days on market in order to accommodate for this slower period. This is something you can ask your agent about and they should be able to tell you what to expect in regard to a longer home selling time-frame

You can always change your mind

If you list your home and then are unable to follow through with the sale due to an illness, job loss, or other reason, you can cancel the transaction without repercussions so long as you include a COVID-19 clause in the home sale contract. We definitely recommend you discuss this with your realtor. In most cases contracts with a real estate agent will list specific reasons why you can cancel the listing contract. You want to make sure COVID-19 reasons are listed for your benefit.

To avoid any extra charges from your real estate, review your listing agreement carefully to see if they charge a fee for taking your home off the market early. You can negotiate your agent’s standard agreement to reduce the length of the contract or waive fees; they may be particularly accommodating at this time. Divinity Inspections is always here to help you when you need referrals, a property inspection or a pre-listing inspection.