Should I Sell My House Now During the Pandemic?
You and your family may be wondering if you should sell your house now during the pandemic. There has been some debate about this topic in the past week, so we decided to list the pros and cons of selling your home while we still can.
This is a question that many people want to be answered – Is now the best time to sell my house? The short answer is no. Pandemics are unpredictable. The severity of this particular pandemic will not be known until it’s nearly over. And, even then, nobody knows what the next one will be like or when it will hit.
During normal times, housing prices continue to rise year after year. As long as house prices are increasing faster than inflation there is never the best time to sell your house because if you wait another year you could get more money for your home. So should I sell my house now during the pandemic? No! Sit tight unless you have pressing reasons such as relocating to take care of an ill relative.
History has shown us that it is very rare for the average person to come down with the swine flu virus. According to experts, only about one out of five Americans are even at risk for contracting this particular strain of influenza. This means that four out of five people will never get sick from it nor will they spread it to others. That itself should give good peace of mind to those who have health problems or where there are infants in the house since these groups have a higher risk factor for developing complications from swine flu if exposed to it. There’s no need to panic or sell your house now just because you found out that somebody else got sick near you, especially if they didn’t come into contact with anyone you cared about.
The best time to sell your house is when it is in the best shape and at its optimum market value. What’s considered “good” and “optimum” will depend on several factors such as:
– Your location (some places are hotter markets than others)
– The condition of your home (renovations can add huge amounts of extra value to your asking price) – Current housing prices in your neighborhood
– Interest rates
– The state of the economy in general (if house prices continue to rise, don’t sell yet!)
By taking into account all these things you may find that there isn’t the best time to sell your house especially when you compare it to historical data on annual increases in house prices. Even if someone tells you that this is a good time to sell, it probably isn’t true. And don’t listen to the real estate agent who says otherwise unless you have some compelling reason such as relocating for a job or need more money for college expenses.
There isn’t the best time so long as your home continues to rise in value every year. Buyers are out there during this pandemic collecting houses like people collect stamps and coins; they know that values (no matter what happens) will climb higher another year from now. Do yourself a favor and put off selling until at least after the holiday season when most buyers are preoccupied with family matters and not house shopping.
ADVANTAGES: By selling your house while there is a demand for housing, you will likely get more than its current market value because many people are unable/ unwilling to buy due to the pandemic. Also, if you find another job outside of currently affected cities, you would not have to worry about putting yourself at risk by renting or staying with friends and relatives who live in areas that are still unaffected. Lastly, it ensures that once the pandemic ends and all jobs are operational again, you’ll be able to come back home again.
DISADVANTAGES: By selling your house during the pandemic, you are taking a risk by potentially losing out on substantial equity gains if the pandemic ends quickly and things go back to normal. Besides this potential loss of wealth, many people do not want to move twice within one calendar year (i.e., selling their house in the late fall/winter only to buy another home next summer). Lastly, it can be very traumatic for some homeowners who have lived in their homes for many years and live where they grew up or raised their children–they may feel that they cannot just leave everything behind easily, even with an offer.
SUMMARY OF ADVICE: I would not wait too long to sell your house. If you are interested, then speak with a realtor or send us an email so we can give you some advice on how to go about arranging the sale of your home. The current “advantage” of selling during this pandemic will likely only exist for the next month or three– it is better than nothing, but if you think that things will change drastically in 3-6 months, then there is no reason why you should risk losing out on substantial wealth gains by waiting (and potentially having millions of homes flooded onto the market as people lose their jobs). It may be difficult emotionally for some homeowners, but life goes on; find new employment opportunities outside of the current pandemic-affected cities and start a new life.
While being glutted with houses is the best time to sell, it is not particularly wise to wait for a flu pandemic to do so. This is especially true if you have a job outside of the pandemic-affected cities and can therefore move to another city with ease.
You may consult and get a free cash offer for a New York house.