First off, the coronavirus has now wreaked havoc on our country physically with severe illness and death as well as our economy and our financial foundation being crippled with a multitude of businesses and “crowd gathering” venues that have been totally shut down by many governors as well as all the school closings locally and around the U.S.
The devastating effects and deadly blows have been experienced by the majority of the countries around the globe; although they have been much more prepared then the U.S. We could have and should have been much more proactive as was expressed by Dr. Micael T. Osterholm, of the University of Minnesota who is a foremost specialist in infectious diseases and bioterrorism.
He has felt since 2000, when he wrote a book called, “Living Terror” and told the powers to be and again in 2017, when he wrote “Deadliest Enemy,” that our country had been grossly unprepared in our defense against deadly viruses.
He had warned congress in 2017 about our situation and told everyone that we needed greater stockpiling of necessary medical devices and supplies, but nothing was done or accomplished. You should watch and read what he had to say in a recent CNBC interview here: https://www.cnbc.com/2020/03/17/coronavirus-us-must-confront-how-were-going-to-live-with-it-expert-says.html
Why are we always “Monday morning quarterbacks”? Just like we put off the rebuilding of our roads, bridges, tunnels and our “mothballed” high-speed rail around the U.S. We wait until we a bridge or two collapses, enough deaths and fatalities at intersections or roads then a traffic light or stop sign gets installed.
Are we so expendable that our government just looks at us as a basic commodity without any value or consideration as not only human beings or citizens? Are we working for them or are they supposed to be working for us?
It’s time for a drastic change in November!
Sorry about diverging, but I had to get this off my mind and vent a little bit!
Anyway, it’s obvious that our real estate market will be affected because of the Covid-19 virus and there is currently fear in going out to not only restaurants or any food location (except maybe grocery stores), but to hair and nail salons, estheticians for facials etc. However, my feeling in waiting to sell your home and putting it on the back burner, thinking that when things cool down in 12-18 months, then you’ll consider selling.
My professional opinion is that this would not be the most beneficial path to pursue. A recession will almost assuredly occur in some form or another, whether it be short term or possibly for a longer period of time in the very near future and I do not think that the Fed or any other government agency will be able to stem that tide.
With all the businesses, schools and “crowd gathering venues” being shut down for a number of weeks or for the season and foreseeable future, it is almost inevitable that this “tsunami” of the reduction in our GDP will be in the negative zone and no one really will know for how long.
Delaying and putting off selling your home, townhome, condo or coop, thinking and hoping that things will get better, will not be financially beneficial.
But the question is, by doing so, will prices stabilize or potentially be reduced? I emphatically say no and I do see prices going down, which have been softening slowly but surely to a more normal appreciation rate.
However, in a recessionary environment as housing inventory usually increases, because demand usually cools off, (right now it has slowed mainly due to the Covid-19 and much more than what would be considered normal) it becomes a supply/demand economic equation. Greater supply, lower demand equals lower prices.
Even though it might be an excellent time to refinance as well as for buyers to purchase due to an even lower interest rate today than a few weeks ago, selling now will be much more to your advantage than waiting.
Here are some suggestions and ideas to consider while putting your home on the market and at the same time being safe and NOT doing open houses but by doing the following:
1.) Advertise showings as is normally done via the internet and then prepare to do the following:
a.) Have all handles, doorknobs and any place that buyers would touch wiped down with Clorox, which will kill 99.9 percent of all viruses before
b.) The agents should wear surgical gloves and could assist in getting those areas wiped down
c.) Have only the agent do the showing by being the only one (and not the prospective purchaser) to open and close doors, draws or any place the prospective purchaser wants to view.
d.) By appointment only showings during specific designated times agreed to by the seller and having only one person or a couple come in at a time for each showing.
e.) If the homeowner has compromised immune systems, respiratory issues or any other physical ailment that would compromise their health, then a strategy of 3D virtual tours would be created to market the home without anyone physically coming into the home.
f.) Have alcohol-based hand sanitizers at the entrance to the home as well as soap and disposable paper towels in all bathrooms.
g.) Discuss with the homeowner/seller if they would agree to temporarily relocate and live somewhere else while their home is being sold, especially if they are motivated to sell and not wait to a much later date after a vaccination is created, which could be 12-18 months and then the coronavirus might subside.
These may not be everything that a homeowner or agent can do but it’s a basis to begin with if you are considering selling now, which I suggest and not wait until a recession hits and then prices will surely slide and go down! Selling now is your best bet. Here is a link to read about the coronavirus (Noval Covid-19) from our National Association of Realtors Website:
P.S. All local elections have been canceled by Gov. Cuomo on 3/17/20 and rescheduled to April 28, so put this date on your calendar and don’t forget to go out and vote or do an absentee ballot by calling your local municipality for information.
Philip A. Raices is the owner/Broker of Turn Key Real Estate at 3 Grace Ave Suite 180 in Great Neck. He has earned designations as a Graduate of the Realtor Institute and a Certified International Property Specialist.
He can be reached by email: Phil@TurnKeyRealEstate.Com, or by cell: (516) 647-4289.