The Impact of Caronavirus on Sellers
Many people contemplating selling are worried about the impact of the coronavirus on sellers and their plans to sell quickly.
The Impact of Caronavirus on Sellers
Are Open Houses Affected
Self-isolation policies are making it ‘extremely difficult’ to put your house on the market this spring, TV homes expert Phil Spencer says. “Viewings are being canceled across the board as thousands of buyers opt to stay home or sellers ask agents to cease viewings. With fewer domestic buyers and a scarcity of overseas buyers, transaction levels are likely to fall sharply in the short term.”
What About Foreclosure
If you are selling because of threatened foreclosure, there’s good news. The government has announced a three months’ mortgage payment holiday for those affected by coronavirus – but Congress has not yet finalized terms and conditions. Remember, payment holidays allow you to take a break, but they do increase the total amount you owe, so it’s not free money. You must pay it back in the future.
Contracts May Be Affected
According to The Law Society, which represents solicitors who practice conveyancing, if lockdown happens, it will be impossible to sign documents in person, or have them legally witnessed: If e-signatures are not accepted, expect significant delays in this part of the process, until the situation improves.’
If you are between exchange and completion, all parties are still legally-bound to proceed unless they are willing to accept financial penalties and potential legal action for breach of contract and damages.
Renters are Affected
We will see states adopt procedures like California. On Monday, Governor Gavin Newsom issued an executive order that authorizes local governments to halt evictions for renters and homeowners, slow foreclosures, and protect against utility shutoffs for Californians affected by COVID-19.
This Executive Order comes as Californians are experiencing substantial loss of hours or wages, or layoffs related to COVID-19, affecting their ability to keep up with their rents, mortgages, and utility bills.
“People shouldn’t lose or be forced out of their home because of the spread of COVID-19,” said Governor Newsom. “Over the next few weeks, everyone will have to make sacrifices – but a place to live shouldn’t be one of them. I strongly encourage cities and counties take up this authority to protect Californians.”
The impact of coronavirus on sellers will have some significant effects on real estate. What we’ll experience is a one-time demand shock to the global economy. Corporate earnings will crater… People will lose their jobs… Economic growth will stall.
There is no doubt about that.
It is essential that you communicate with your landlord, talk with your lender, and don’t live in fear.
The earnings and economic slowdowns from the coronavirus are temporary. We have been through the fire before, and we have come out of it stronger. This is temporary!
Ask for FREE information about How to Sell Your House Fast.
Terra Firma Property Solutions, LLC, is a professional, full-service real estate solutions firm.
We buy and sell properties throughout the greater Kansas City area. We specialize in buying distressed homes, then renovating and reselling them to home buyers and landlords. Terra Firma Property Solutions: excited to be part of the economic rejuvenation of Kansas City and its surrounding areas.
Call us today at (816) 866.0566
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