COVID-19 and the resulting stay-at-home orders had many people consider putting their real estate plans on hold. But as restrictions are lifted and the island continues to open, it looks like the coronavirus has actually made some people more eager to buy than they were pre-pandemic.
According to some home buyers, they said they are more likely to buy a home in the next 12 months due to the coronavirus outbreak. There are a variety of reasons these buyers are keen to make a post-pandemic real estate purchase:
- Taking advantage of properly priced inventory
- Being able to save a larger down payment due to reduced spending by staying home.
- After being stuck in a small space for 2+ months, many would-be buyers are also realizing how much they either want their own home or the space that goes along with a larger home.
- Needing a space for a proper home office (which will become more the norm).
We realize that there are many people who have been affected by career layoffs, etc. And it is true that the banks are all being cautious with preapprovals, often requesting applicants to revisit with any updated information. But as a seller, the good news for you is that it is now a prerequisite of COVID 19 precautions for Sales Agents to only show buyers that are properly qualified in order to mitigate any unnecessary exposure to the virus. So, you can be assured that people looking at your property are in a position to buy, and are serious prospects.
In this market, it is essential to list at the right price! Buyers are doing a lot of research online, and many of them are very savvy and well informed (they have spent a lot of time at home researching on the internet). Your home is only worth what the bank appraises it for, and the most interest comes within the first 2 weeks of listing. Pricing your home too high will cause you unnecessary exposure to unsuitable prospects, cause your home to ‘sit’ on the market for longer than it should. And probably selling your property for less than it should, as newer more exciting things are coming onto the market all the time. Or someone who may have bought it if priced correctly, in the beginning, will have moved on and seen other properties that they like just as much. Remember, as the saying goes “A bird in the hand is worth two in the bush”. If you get a good offer shortly after putting your property on the market, it is likely not because you priced your property too low, but rather because the prospects have done their homework, are preapproved, and ready to buy. Sometimes the least qualified prospects make the highest offers, as they are not fully informed of the sales procedure and the additional expenses associated with it …stamp duties (both on the conveyance and the mortgage document) banker’s finder’s fees, lawyers conveyancing fees, land registration fees and more.
So, what does this mean for you? Buyers are ready and excited to get back into the real estate market—so if you’ve been thinking about selling your home, now is a great time to make a move, but be sure to talk to your Real Estate Agent about pricing first.
Article provided by Heather Chilvers. Heather is amongst Coldwell Banker Bermuda Realty’s Leading Sales Agents. She has over 31 years, experience in Real Estate. Follow ‘Heather Sales Agent – Coldwell Banker Bermuda’ on FaceBook, and ‘@heatherrealtorbermuda’ on Instagram.
If you have a question for Heather, please contact her at firstname.lastname@example.org or 332 1793. All questions will be treated confidentially.
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