Covid-19 Real Estate News
Like most businesses, the Miami real estate industry has slowed to a crawl, if not a standstill. But it will run again! During this period of uncertainty, here is some advice I have been sharing with my clients and “sphere,” as we say in our industry. Not all of it is encouraging right now, but we must be completely honest with each other in these difficult times.
HOMEOWNERS
Q: Is your home on the market?
A: Try to be patient. You have no other choice. This is an unprecedented situation that we are all dealing with together. Fortunately, it is not a hurricane, in which case we would have to assess physical damage after it is over. Unfortunately, we will have to deal with financial and economic challenges.
Read more here: https://www.miamiherald.com/news/business/real-estate-news/article242490601.html#storylink=cpy
Q: Are you ready to list your home?
A: You may be experiencing the natural anxiety of being confined. Now is a good time to get your house ready for the market. Declutter, donate, and discard items that you might have collected over the years but do not need anymore. Fresh paint and staging brings value and speed when selling. (It will also give you a project on which to focus, instead of the pandemic.) When in doubt, less is more!
Q: Have you been home shopping for some time?
A: Talk to your agent about being sent new listing alerts via email, if you are not already receiving them. (If you prefer to search the internet, I recommend Realtor.com.) Either way, just be ready to act when the time comes. Expect to use virtual showings and video tours as the initial viewing of the property. Many sellers are limiting entry to their properties until they have an offer, or even a contract, on the property – subject to buyer viewing in person, of course.
Q: Looking to start your home search?
A: In order to obtain a loan, get your financial house in order. Loan rates are at historic lows, but many banks are still figuring out the government’s stimulus package, so make sure to choose a lender who has time to work with you. Here are some of the documents they will need:
▪ Paystubs for the past 30 days
▪ Bank statements for the most recent three months
▪ W-2s or 1099s for the most recent two years
▪ Federal tax returns for the most recent two years
Read more here: https://www.miamiherald.com/news/business/real-estate-news/article242490601.html#storylink=cpy
▪ Business tax returns (if applicable)
LANDLORDS
Do what you can for your tenants, especially if they have lost their job. It’s a difficult conversation to have, but appreciate their effort to be upfront with you. Perhaps work out a deferred payment plan where they pay a reduced rate now and repay the shortfall, over time, when they obtain new employment. Some rent is better than no rent. It will also be very difficult to find new tenants right now and, hopefully, the current tenants will keep the property in good condition with utilities running. Contact your mortgage company, as many of them are offering forbearance (but not forgiveness) without additional fees or interest. Speak with your accountant and document lost rental income.
TENANTS
Keep your landlord informed of your situation, especially if your ability to pay rent changes. Many landlords will try to work something out with you, but you can only make things worse by not communicating. If you are not living at the property during the pandemic, remember to keep utilities running to prevent damage to the home in your absence. Do not abandon the property without giving proper notice, as that can lead to legal implications in the future.
STAYING SANE NOW
I hope you are safe and staying out of harm’s way, but social distancing does not mean we have to be anti-social! I know everyone is using Zoom, but try the Houseparty app for group video chats too. It’s a good time! Some communities have created block party singing blogs, and my own kids have been writing chalk messages on sidewalks.
Read more here: https://www.miamiherald.com/news/business/real-estate-news/article242490601.html#storylink=cpy
WHEN IT’S OVER…
In terms of the post-coronavirus market, I believe there will be a significant “breathing” period. Unless there is an immediate need to move, people will need to breathe! Family members will need to hug and spend time with each other. Small businesses and their employees will need time to re-acclimate themselves to the workforce. Students will need to re-adjust to taking classes, doing homework, and recovering lost time with peers. Buyers will re-emerge and sellers will be able to sell their homes again…after everyone breathes.
Read more here: https://www.miamiherald.com/news/business/real-estate-news/article242490601.html#storylink=cpy
