Here is our opinion on this topic:
In this uncertain time, like many other homeowners, you may consider selling your home. Although we are a real estate sales company as well as a property management company, we are currently advising against selling during the quarantine period. Denver still remains a hot market and the sale of your home is still an option but there may be a better time. Some homeowners may have specific circumstances where selling now makes senses as well. To view our current recommendations for successfully selling in this environment, click here. Our opinion to sit tight for a few is due to the following factors:
Showing properties in today’s climate is difficult:
To successfully sell a home, you need to be able to show the property to prospective buyers. The state of Colorado recently issued a Stay-At-Home order, making showings near impossible. This issue alone is enough for us to caution you not to list at this time. People, in general, are more and more conscious about being close to others or in other people’s spaces. Furthermore, we cannot force showings on occupied properties because we never know who may be living with someone with a compromised immune system or who cares for an elderly relative or friend. The stay-at-home order does not support the best conditions for marketing your home for sale. Below are other considerations that can make selling a home difficult today.
Buyers may not be financially stable at this time:
I personally (Ryan Prun – Co-Owner Top Properties) am currently working with a few buyers and have advised them (based on specific conditions) not to pursue going under contract at this time. We could easily go under contract, but in the likely event their income changes in the next 30-45 days and before Closing, the underwriting on their loan would probably fall through. My buyers would be stuck with costs for inspections, appraisals, etc. as well as being excited about the purchase to find out at the end that it was not possible.
From the sellers’ perspective, when/if the financing fell apart last minute and they had to go back to the market, it would be a costly and challenging timeframe for them. We believe, as a seller, you should know this is likely to happen more and more as people pre-qualify, then many lose part or all of their income and the loan falls through just before Closing. You will lose time on the market and be forced to pay months of mortgage you weren’t expecting.
Showing tenant occupied properties is difficult in general, but particularly tricky today.
We wrote an article on selling tenant-occupied properties last year. In summary, selling your property with an active lease agreement can be difficult. Specific types of loans are needed for investors looking to purchase a rental investment. If you are only presenting your homes to investors, your home is only available to a smaller segment of the market. Social distancing becomes an issue when everyone is walking through your bedroom. On top of that, your tenants may not want to move and can make the showings unproductive. They may cause more of a distraction at this time, making the home less marketable. Read our full article here.
If you are still considering selling at this time, Top Properties is here for you, we would however advise planning to list after the stay-at-home orders lift. At Top Properties, you even receive a discount for listing your home with us as your broker. Just know, the timing could be better in the coming months.
We are here for you during this challenging time and are experts in real estate. We have answers to all of the your questions and situations that may come up during a sale transaction. We have the tools in place to assist with the specific situations such as:
- Digital media strategies for marketing
- Video tours and remote viewing options
- Sale negotiation with tenants in place
- Showing occupied homes
- Timing recommendations to go to market
- Expertise in Real Estate contracts for investment properties
- How to get you the highest price for your home
In today’s real estate market, there are many factors to help sales transactions close smoothly. Most importantly, there has never been a stronger focus on digital marketing. Prospective tenants and buyers enjoy our YouTube videos and online marketing. Remember, one of the reasons Denver has grown so rapidly is because so many people move from out of state. Many people from out of state only have the option of viewing homes online. We are uniquely positioned to offer drone photography, high-def, edited professional photos, and full walk-through videos with stabilizing tools to create a sense of truly being present for the experience.
Top Properties has a broad pool of investors we work with. If you are genuinely interested in selling, open a dialogue with your Property Manager / Broker. They will discuss all the options and discounts Top Properties has to offer! Please carefully consider your options. For alternatives to selling your property today, please read our article on mortgage forbearance.
Contact your Top Properties Property Manager / Real Estate Broker for full details and recommendations for a successful sale process in todays environment.
Other Current FAQ’s
- What if my tenants can not pay rent?
- If my tenants can not pay rent, what happens if I cannot pay my mortgage?
- How will maintenance be performed during social distancing?
- Thinking of selling your home – current opinions and practices.
- If the lease on your home is up for renewal soon, should you consider offering a short term lease?