A short holiday week equals a short holiday blog!
Last year, I did a “naughty or nice” checklist that can be applicable to this year. That checklist also serves as a fantastic informational resource. Take a look at the 2019 past blog here.
With all the wild swings seen in the real estate market, this year’s checklist is a bit different. Below is the “naughty list” on what to avoid, and the “nice list” on what to do instead.
The Pandemic Economy
The naughtiest of them all…the Coronavirus. COVID-19 took almost everyone by surprise this year. It turned our local markets into a wildly volatile marketplace unlike anything the South Bay has seen before.
Perseverance. While the virus has affected millions of people’s health, and stay-at-home orders have hurt the economy and local business, this year has taught us to persevere. I am proud to work with colleagues and clients that kept a cool head (and continue to keep a cool head), while finding opportunity in chaos amidst working their tails off.
Sellers & Low Inventory
If you plan to sell in 2021, do not wait to sell in the second half of the year. The inventory is so tight, rates are historically low, and buyers are more motivated than ever to make a deal. Selling in the second half of 2021 adds considerable risk with much less visibility.
When you sell, I think it is wise to jump the market. Think late January, February, or early March. You will benefit from the amazing run up in prices, while still having the mental edge against Buyers who are making a commitment to purchasing in 2021. Remember, your proceeds will likely be invested elsewhere, so if the real estate market does rally into the second half, then other places like the stock market could go with it.
*Not everyone has the luxury of selling any time they choose in a year, but if you do, I think selling early and into the spring is very smart. You won’t lose that much and who the heck knows how the economy shakes out as we get back to normal and stimulus starts to ease. Real estate is illiquid, and it is nice to sell into a hot market.
Buyers, Do Not Get Discouraged
Getting discouraged by the market. Or, even worse, forcing yourself to buy a home that is not right for you. I wrote about this topic last week on the blog, which can be found here. Please do your best to stick to your numbers and be patient. I cannot stress it enough. But, it is easier said than done.
Buy a home that you love and can afford. The growth will take care of itself long-term, so do not get caught up in this rush. You need to have contingency plans to give you a long runway to find the right home at the right price. That said, it is even better if you do not have to buy in all of 2021. Give yourself options.
Make Sure to 3-D Tour
Last year’s naughty list was not having professional pictures for your home’s listing. I can confirm that statement still stands, but with a new addition. This year’s naughty list…not having a 3-D virtual tour. Not everyone is comfortable touring homes during the pandemic and not everyone can travel to come and see your home, so not having a 3-D virtual tour to address 2020’s challenges are short-sighted. The 3-D tours are very affordable and have been amazingly effective in this market.
Quite frankly, industries are slow to change. My hope is that with home shopping done almost exclusively online, our residential professionals throughout the South Bay will make 3-D tours industry standard. The pandemic has made them more valuable than ever and I think they are a marketing tool that cannot be underestimated.
I could go on and on with this cheesy list, but let us stop there.
Wishing you all a safe and happy holiday season.
There is one final blog next week to wrap 2020!
So, I will catch you back here soon.