The thought of selling your house in an economic downturn may seem scary but we will guide you through it. So much has been happening since the COVID-19 virus has come to Metro Detroit. For the most part, this pandemic was not a foreseeable occurrence but since it’s arrival many things have been changing at a rapid rate. Our economy is spiraling downward very quickly and creating hardships for a lot of property owners in the area as well as around the state in general. Many homeowners have lost their jobs overnight and were forced to file for unemployment. Recently 3.3 million people in the United States had filed for unemployment in the span of one week, the most in the history of this country! As of the time of this post being written there is a state-wide stay-at-home-order in place, issued by Governor Whitmer. It’s really hard to predict the extent of how bad this will impact the housing market in Detroit in the long run. So, here we have put together the ultimate guide to selling your house in an economic downturn in Detroit MI. This information should be vey useful if you are thinking about selling before things might get worse. With so many people’s income suddenly cut off or reduced, it will be difficult to make mortgage payments, pay property taxes or even make repairs.
Stay Calm And Do Not Panic
It’s super imperative to remain calm during a time of crisis such as the one we are in right now. No one can predict the future but we can plan ahead and take some actionable steps to help curve the impact. It is hard to make rational decisions if you are not thinking clearly because of panic and mental distress caused by what is broadcasted on major media outlets. People rushing out to grocery stores and panic-buying definitely is not helping the overall situation at hand either. So regardless of how crazy it might be in the world, don’t get too wrapped up in the chaos.
Be Realistic
Over the past few years the housing market in Detroit has been on the upswing but things are changing quickly. Shortly after this dilema began, there has been a loss of buyer interest due to fear of the unknown. It is also unclear at the moment what changes might occur with the lenders because of so many people being laid-off from their jobs in such a short period of time. Also many sellers are fearful of having anyone walking through their homes and the same goes for buyers as well. This slows things down tremendously when looking to sell your house. With less buyer interest which typically leads to longer days on the market eventually snowballs and drives down property value. As of right now it’s impossible to say for sure if this will happen but it would be ideal to be mentally prepared just in case. The reality is, it might take a while longer for your house to sell and it could possibly sell for much less than what you may have hoped for.
With the stock market down, many people have lost considerable sums of money and a large number of folks had their 401k or retirement accounts deminished over-night. With the shut-down of major businesses such as hotels, bars, restaurants, casinos, movie theatres and more, money is not flowing through the economy and rents are not being paid which may eventually have a crippling effect on our local economy.
Have Patience
As mentioned earlier it just might take a little longer to sell your house than it probably would have a few months ago. Normally the spring is a great time to sell a house in Detroit but this year things might be different. It is important to price your house for sale at a fair but competetive price point, so it doesn’t get passed up by potential buyers in the market who are looking to purchase. Keep in mind that even after finding the right buyer the closing process might take a little longer than usual because many title agents and Realtors are currently working from home.
Hire An Agressive Agent Who Has Experience With Creating Virtual Tours
You will need to work directly with a real estate professional who is technologically savvy. Putting you or your family’s health at risk is simply not an option! You could either make a walk-through video yourself or have the agent or professional do it. If you opt for having someone other than yourself do it, you should go outside while they record the video. Make sure they wear a mask and gloves if they enter your property to protect everyone as much as possible. If you opt for doing the video yourself, you could send the video file to your agent and have them edit it before posting it online. The same goes for photos as well. Just be sure that the house is well lit before taking photos or shooting video footage. The goal is to eliminate any unnecessary foot traffic at your property if possible. There might be a point where a home inspector may need to enter the home and if that is the case, just be clear that you won’t allow them to perform their job unless they wear protective gear.
Keep It Clean
Before you even think about photos or virtual tours you will need to clean and declutter the house and the yard. This means sanitizing countertops and doorknobs, light switches or anything that someone might touch. This time of year the grass begins to grow very quickly as the temperatures start to rise. A well maintained lawn is what we reffer to as “curb appeal” in the real estate world. Before writing the ultimate guide to selling your house in an economic downturn we tried to make sure that we covered a lot of helpful tips.
Utilize Technology
One of the greatest advantages we have today is the easy access to information and technology. We are able to achieve things instantly that would have taken hours or even days just 10 or 15 years ago. In many cases today, we have the ability to sign paperwork online. With all of the health risks going on right now it would be a good idea to utilize these tools. Instead of having a meeting in person you could use a video call app on your phone to conduct interviews if necessary.
Forget About Repairs
When selling your house in an economic downturn in Detroit, there are many factors to consider. A lot of the materials used for home improvement in our country actually come from China. At the moment there might be some shortages because the supply chain has been disrupted due to certain restrictions and manufacturers not operating at full capacity. Also it’s just not a good idea to have contractors coming to your property during this COVID-19 pandemic. It would be a much more intelligent choice to sell your house “as-is”.
Look At Cash Offers Above All
With so many unknowns in our economic future, cash tends to reign supreme during times of crisis. A cash sale usually goes a lot more smoothe as opposed to a traditional bank financed deal. A purchase being financed by an institution will usually require a professional inspection and an appraisal. All of these things take up time and if something goes wrong it can kill the deal altogether. With an all-cash sale you will not have to worry about those things happening in most situations.
Sell Directly To A Professional House Buyer
An awesome alternative to listing your house for sale the traditional way is to sell directly to a professional cash house buyer. At Detroit Fair Offer we buy houses in Detroit for cash “as-is” with our own money. Reach out to us and get a cash offer today and let’s speed up the process. By selling direct, you can completely avoid paying agent fees and closing costs. This is an excellent way for selling your house in an economic downturn.
Are You Facing Property Tax Foreclosure?
The Wayne County Treasurer, Eric Sabree recently announced that they will not be foreclosing on any homes in 2020. Read this article for more information regarding this topic.
