In a recent survey by realtor.com, people thinking about selling their homes indicated they’re generally willing to allow their agent and some potential buyers inside if done under the right conditions. They’re less comfortable, however, hosting an open house. This is understandable, given the health concerns associated with social contact these days. The question is, if you selling your home now, what virtual practices should you use to make sure you, your family, and potential buyers stay safe in the process?
In today’s rapidly changing market, it’s more important than ever to make sure you have a digital game plan and an effective online marketing strategy when selling your house. One of the ways your agent can help with this is to make sure your listing photos and virtual tours stand out from the crowd, truly giving buyers a detailed and thorough view of your home.
So, if you’re ready to move forward, virtual practices may help you win big when you’re ready to sell. While abiding by state and local regulations is a top priority, a real estate agent can help make your sale happen. Agents know exactly what today’s buyers need, and how to put the necessary digital steps in place. For example, according to the same survey, when asked to select what technology would be most helpful when deciding on a new home, here’s what today’s homebuyers said, in order of preference:
- Virtual tour of the home
- Accurate and detailed listing information
- Detailed neighborhood information
- High-quality listing photos
- Agent-led video chat
After leveraging technology, if you have serious buyers who still want to see your house in person, keep in mind that according to the National Association of Realtors (NAR), there are ways to proceed safely. Here are a few of the guidelines, understanding that the top priority should always be to obey state and local restrictions first:
- Limit in-person activity
- Require guests to wash their hands or use an alcohol-based sanitizer
- Remove shoes or cover with booties
- Follow CDC guidance on social distancing and wearing face coverings
Getting comfortable with your agent – a true trusted advisor – taking these steps under the new safety standards might be your best plan. This is especially important if you’re in a position where you need to sell your house sooner rather than later.
Nate Johnson, CMO at realtor.com ® notes:
“As real estate agents and consumers seek out ways to safely complete these transactions, we believe that technology will become an even more imperative part of how we search for, buy and sell homes moving forward.”
It sounds like some of these new practices might be here to stay.
Bottom Line to Selling Your Home
In a new era of life, things are shifting quickly, and virtual strategies for sellers may be a great option. Opening your doors up to digital approaches may be game-changing when it comes to selling your house. Let’s connect so you have a trusted real estate professional to help you safely and effectively navigate through all that’s new when it comes to selling your home.
Low Inventory: The Top Reasons
Fewer Foreclosed Homes
Thanks to foreclosure and eviction moratoriums, there have been fewer foreclosed homes available than in previous years. On January 20, 2021, newly elected president Joe Biden extended the Foreclosure Moratorium and Mortgage Forbearance Deadline Extension to June 30, 2021. Many believe the number of foreclosed homes will dramatically increase as the moratoriums expire at that time.
Thanks to the increased demand, housing prices have soared, up 13.4% on average. While sellers know they can sell their homes at a reasonable price, there may be concerns about getting a new house they can afford. As a result of this uncertainty, many potential sellers have decided to wait before they put their homes on the market.
Low Mortgage Rates
Thanks to low mortgage rates, many people who might have been hesitant to purchase a home are now eager to buy. There are three primary reasons to take advantage of low mortgage rates:
- Mortgage can be paid off faster
- Build equity
- Save money (less money spent on interest and more on actual principle)
The Coronavirus (Social Distancing)
The coronavirus pandemic has played a large role in the real estate boom. For example, thanks to working from home, virtual learning for kids and social distancing rules, many workers began to seek new living arrangements. Many felt suburban life may help them escape from the civil unrest seen in many large cities. Others needed larger work areas in their homes for themselves and their children.
First-Time Home Buyers
There are over 75 millennials in the United States, making up a quarter of the US population. This next generation of home buyers may be ready to own their first home. Each of these factors play a large role in the current housing market situation.
What Happens Now?
The next 12 months will be critical for the housing market. To determine where we go from here, there are several factors to watch closely:
Will Demand For Homes Increase or Decrease?
On April 28, 2021, the Federal Reserve released a statement pledging to keep interest rates steady. In addition, they announced a continued monitoring of the economy, seeking to achieve maximum employment and an inflation rate “moderately above 2 percent for some time.” By keeping interest rates low, demand could remain high for houses for the foreseeable future.
Will Home Prices Continue To Rise?
Following simple economics, housing prices should continue to rise if demand exceeds inventory levels. However, if rent and mortgage moratoriums are eliminated on June 30, 2021, a large number of foreclosed homes may suddenly hit the market. This could bring housing prices down.
Another important factor is lumber prices. A shortage of lumber has sent the price of new homes even higher: according to the National Association of Home Builders, lumber prices have skyrocketed nearly 250% since April 2020, causing the average price of a new single-family home to increase by nearly $36,000.
Are New Homes Being Built?
According to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, residential construction is up in several areas:
Building Permits. Privately-owned housing units authorized by building permits in March 2021 were 2.7% above the February rate and 30.2 % above the march 2020 rate.
Housing Starts. Privately-owned housing starts in March 2021 were 19.4% the February estimate, and 37% higher than the March 2020 rate.
Housing Completions. Privately-owned housing completions in March were 16.6% above the February 2021 estimate. They were also 23.4% the March 2020 rate.
Based on these numbers, the housing market boom doesn’t appear to be slowing any time soon. However, it’s important to watch the trends: things could change at a moment’s notice. By paying attention and thinking ahead, you can take advantage of the unique opportunities that come your way.
Why East Bay CA?
East Bay CA is known for it's good economy, beautiful landscapes and extremely popular housing market. When other states and territories have experienced decline in housing prices the Bay Area in general has remained strong. This doesn't mean you should not diversify your portfolio across many states, but East Bay CA Real Estate is certainly a strong place to start for a novice investor. There are even some great low cost homes that are ripe for renovation.
Need More Information?
We have a team of friendly, helpful staff & agents that specialize in East Bay CA real estate and property sales that can help you work out how to best get your property portfolio started. Our agents are here to put your needs first, get you the best deals and offers, help you buy or sell your dream home and build your investment portfolio. Reach out to our team today to find out your options.
If you are looking to find an East Bay Realtor, or looking for homes for sale in East Bay CA, or even to sell your home with someone who will make sure you get the best deal and understand your needs - look no further - when you work with us, consider yourself family.