If you were considering buying or selling a home in 2020, the COVID-19 pandemic could have left you wondering if now is the right time to do it amidst the economic uncertainty.
As a homeowner, you have the option of putting your house on the market with the ongoing pandemic, wait until stay-at-home orders are lifted in your area, or postpone selling your house indefinitely.
To help you decide, here are some reasons you should sell your home in 2020 – or why it pays to wait.
Reason for SELLING NOW: Mortgage interest rates are at an all-time low
Mortgage finance giant Freddie Mac reports that the average 30-year, fixed-rate mortgage dropped to 3.29%, while the 15-year, fixed-rate mortgage fell to 2.79%.
These low rates initially led to an overwhelming amount of interest from homeowners and buyers. Buyers may get better terms on their mortgage during this time, encouraging even more buyers to enter the market trying to get a good deal.
Reason for SELLING NOW: You have a starter house
There is one factor that is driving home sales for now: demographics. According to the Washington Post, the median age of a first-time homebuyer is 33 to 34 years old. Millennials who are turning 30 are considering purchasing a house, especially homes at entry-level prices. There is also a growing market for older homebuyers who want to downsize.
Reason for POSTPONING SELLING: You just refinanced
If you’ve recently refinanced your mortgage, check if there are clauses that can keep you from selling or force you to pay a penalty if you pay off your mortgage too soon. One clause to watch for is a prepayment penalty clause, which is a fee that could apply if you sell your house too soon after refinancing. The prepayment penalty clause could require you to pay a fee based upon a percentage of your outstanding principal, or a certain number of months’ interest if you pay your loan off early.
Reason for POSTPONING SELLING: You’re not willing to compromise on price
If you sell now, will you get the price you’re looking for?
The uncertainty in the economy and layoffs have prompted some potential buyers to hold off on a home purchase. Some buyers might even face delays in mortgage pre-approval because of changing financial circumstances.
If you’re not open to the idea of settling for a price slightly lower than you may have gotten ordinarily, you’re better off waiting until the market starts rising again. You might have to wait out the recession if you’re unwilling to waver on a sale price.
However, keep in mind that when more homes are listed once the pandemic is over, it means property supply (competition) will increase, and pricex will decrease.
To help you determine whether your home is marketable at this time and accommodate any special needs such as performing a contactless home assessment, it will be in your best interest to contact an expert seller agent in your local area.
The best way to find out if you’re ready to buy real estate is to contact an experienced Realtor in Charlotte, NC. Consult with our team at Valarie R. Brooks Real Estate and VRB LifeStyle Properties by giving us a call at 704.488.5458 or sending an email to Valarie(at)ValarieRBrooks(dotted)com so that we can present you with sound real estate options and show you houses for sale in Charlotte.