The covid-19 pandemic has influenced different markets in the world in various ways. The global economy has also been impacted negatively by the epidemic. Sectors like the real estate market, among others, have also had to suffer the consequences. Many homeowners have been left wondering whether or not to sell their homes. Below are some factors to consider.
Reasons to Sell Your Home
Low-interest rates
Even before the start of the covid-19 pandemic, countries like the US were already experiencing low mortgage interest rates. However, the epidemic has caused the rates to decrease further. The reason why this is the case is that banks and financial situations realize the impact of the pandemic and are trying to lure people into taking loans despite the hard times. At the beginning of March, the average mortgage rate in the Uk reached the lowest rate in 50 years. This is good news for sellers because people have access to low-interest house mortgages. With the continued spread of and deaths caused by the pandemic, the high chances are that the mortgage rates will be maintained at a low or go even lower.
If you have a starter home
If you live in a city where home prices keep increasing and bidding wars are a norm, you should expect first-time buyer activity throughout the year. The parts of the market that are likely to be hit harder are the upper ends. For instance, entry-level homes in places like San Francisco see more activity than those at the higher end of the industry. The price range that falls in the entry-level category greatly depends on the area in which you live and the lower third of the home sale prices for an area. However, even with an entry-level home, you may still have a hard time with the number of buyers. The reason is that many lenders are tightening their underwriting standards. They are doing so because of the increased levels of uncertainty due to the economic state. This means that people with a lower credit score and those with small amounts of savings may find it hard to get a mortgage approved.
If you need to move
Regardless of the stay at home orders in different parts of the country, it is not impossible to sell your home and get a new one. Certain reasons like preparing your kids to start attending a new school may be the reason for moving. If you find yourself in a situation where you cannot wait for the situation to come down, you can list your home after the isolation orders are lifted. While buyers may not be quick to make moves immediately, the positive gains of the economy may cause the housing market to reach a state of rebound. You may also need to move if you have lost your job and are not in a place to pay your mortgage. If you find it hard to afford your home, the best option would also be to sell your home. The increase of such kinds of sales may cause a glut of inventory hence resulting in drops in the home value.
Reasons Why You Shouldn’t Sell
If you cannot afford your next purchase
If you are not employed or have lost your job as a result of the epidemic, it may not be wise to sell your home. If you have also taken a pay cut or are likely to fall victim to layoffs soon, it may also not be wise to sell your home. Selling your home means that you will need to acquire a new one. You do not want to do so if you cannot afford it. Make sure to consider all the worst case scenarios and all the necessary data before you make a decision. Even if you cannot afford your current house, the better option would be to contact your lender and discuss the possibility of deferring your mortgage payments for a short time. You can also request for a loan modification to make sure you do not lose your home during these hard times.
If you are not willing to accept a lower pay
If you were looking forward to selling your home at a time when the market prices are high, this year might not be the best time. The reason is that the chances of home prices increasing are very low at the moment. While the future remains unclear, if you cannot accept to sell at a lower price, the only option may be to put off the sell.
If you just refinanced
Many homeowners have had to refinance recently. If you are such a person, you do not have any reason to sell your home anytime soon. Your refinanced mortgage should help ease your financial challenges by reducing your monthly payments. With this, your home should be secure.
Let us help you sell house fast
At We Buy Any Home, we will help you sell your house fast regardless of the current state of the market. If you are looking to sell for whatever reason, you can reach out for the best and fastest services.