Impact of Coronavirus on Real Estate Market
Covid-19 will have both short term and long term impact on home sales in the Staten Island area. Those who would have been potential buyers (or tenants) under normal circumstances are hesitant to visit available properties. They might also be afraid of making a financial commitment while facing job and other uncertainties over the coming months.
Many real estate agents are scrambling to save the deals they were working on when the lockdown took effect. Some have reduced their efforts to take on new listings. As they see it, sellers will be hesitant to leave their property, even for a couple of hours. They don’t want total strangers are walking around inside touching door knobs, windows, and countertops.
These agents also expect their sellers to spend for cleaning their home before showing it to anyone, including other agents.
Even if an agent feels ready to put a Staten Island home on the market, they also face numerous delays. This includes getting an appraisal and home inspection performed (due to Covid-19). Some may also face possible delays in mortgage processing.
URGENT REASONS TO SELL YOUR HOME
For some home owners, the complications of Covid-19 could increase the need to sell a home as quickly as possible. Some face job loss, an ease of education requirements, family concerns, and related financial hardship that won’t wait until our lives return to “normal”.
At the same time, it is possible that a local home owner may already be behind on the mortgage. They could be under threat of foreclosure. There could be one or more liens on the property or be faced with a major repair or expense that is unaffordable. Or, they might also have thousands in credit card debt costing them hundreds in monthly interest alone.
The home owner knows that a fast sale would likely eliminate the mortgage payments. It could pay off any liens, and wipe out repair and maintenance expenses.
Some home owners could be going through a Divorce. Others own an inherited property they can no longer keep up. They might find more of a need to downsize in order to maintain their current lifestyle.
SAVE THOUSANDS ON AGENT COMMISSIONS
Staten Island All Cash is local, and continues to buy local homes quickly “As Is”. Since they are not real estate agents, their ability to purchase and close in as few as five days continues during this challenging time.
In addition, not charging agent commissions and paying closing costs puts thousands of additional dollars into the seller’s pocket.
Most real estate agents, weeks later if and when they sell the home, charge 5% (or higher) in commissions. On a home selling for $200,000, the commissions would total $10,000. Add in closing costs which could total an additional $2,000.
Under this example, the seller winds up with a maximum of $188,000 after selling through an agent.
A purchase of the same $200,000 home by Staten Island All Cash, which could close as quickly as five days, would put the entire $200,000 in the seller’s pocket.
More importantly, the seller could use the cash as needed. An existing mortgage, home equity loan, delinquent property tax bill, and/or property liens could be paid in full.
ADVANTAGES OF SELLING FAST “AS IS”
Owing on the home is far from being the only reason for needing a fast all cash sale. The cash payment could be used to pay down or pay off thousands of dollars in credit card debt. Same with car payments, student loans or educational costs, or helping a family member in need.
In the event of a Divorce, selling the home for cash is often the best solution for completing the settlement. Dividing the cash and moving along is often a more desirable solution. It saves one spouse buying out the other and having to remain in a property with bad memories.
Some people have inherited or otherwise unwanted properties. Consequently, the impact of Covid-19 would create a financial burden as the weeks go on.
Of course, there are more reasons to consider selling right now. More and more people are working from home. That trend is likely to continue even after conditions return to “normal”.
Employers will know that their people can easily work from home, saving family emergency time and long commutes.
As a result, people no longer have to live close to work and/or near public transportation or the expressway. This will allow for some home owners to downsize or perhaps move further away where there are reduced expenses in comparison.
Because the home sells for cash quickly “As Is”, the seller can save thousands of dollars more by not having to make repairs, replace required appliances, spend on paint, or undergo significant maintenance costs. (With current conditions, the seller also likely saves weeks of delays trying to schedule professional personnel willing or able to come to the property to perform the requested work.)
A seller not wanting to keep all of the furniture, clothing, or “junk” inside the home is not required to move it. They can leave it in place and let the all cash Staten Island home buyers take care of it.
FAST AND EASY SCHEDULING
Arranging for a fast all cash “As Is” sale to Staten Island All Cash is also more convenient than using a real estate agent. A local representative can be scheduled to visit the property at the convenience of the seller, including evening hours. The visit does not have to wait until “Sunday between Noon and 3 PM”.
It costs nothing to request and receive a Staten Island All Cash “As Is” free, no obligation, offer for your home, regardless of the current conditions. Closings continue to be available as quickly as five days.
As long as Covid-19 continues to grip our lives and the economy, the increased challenges of selling a home the “traditional” way will also remain in place. There is a way to avoid that, no matter the reason(s) for needing to sell.