Now, more than ever before, this is the #1 Question I hear from my clients: Should I wait until Shelter in Place is over to sell my house? Should I wait for housing prices to drop? Should I wait for mortgage rates to drop even further?
The answer is, it depends. (Sorry, I know that is deeply unsatisfying.
My Question for you:
Have you casually been thinking about buying or selling a home for the past few years and just haven’t gotten around to it? Then yes, you should probably wait. And that is ok. While prices haven’t dropped, and homes are still selling, it can be a bumpy ride in the best of times, and this is definitely a market for motivated buyers and sellers.
But what if you’ve been planning to sell for a while? What if you are getting to the end of your lease and had been planning to buy? Should you be worried? Absolutely not. Prices have not dropped (good news for sellers) and interest rates are rock bottom low (great for buyers)! (Also, don’t wait for interest rates to go down further, they’re amazing right now don’t get greedy J).
For Sellers: I have good news: Homes are still selling, and honestly, we haven’t seen prices drop the way some people expected. There are some differences, though, from what you might usually expect in the Bay Area. Generally speaking, expect some contingencies, definitely a loan contingency, and be prepared to be flexible. Banks are overloaded and while deals are closing, things like inspections and appraisals can be hard to schedule.
For Buyers: I have more good news: people are still selling, and you can get an incredible mortgage rate! On top of that, sellers who have chosen to sell now are motivated and if you come in with a solid offer, then there is a good chance you can get the home you want. There are some things you need to be aware of, specifically in regard to financing, but, if you have good credit and 20% down*, then you should be fine, and may even get a really great rate!
Have more questions? Then let’s chat!
Note: Some banks are now requiring 25% down for conventional loans and 30% for jumbo loans, so be sure to double-check with your lender before you make an offer. (If you don’t have a mortgage person, I have some great recommendations if you need them).