Deals coming from covid-19?

Question

I was in contract to sell my house in Feb 2020 when all the covid was just starting. The buyers agent just notified me that the buyer is backing out now because he was using his 401k money to retire with and now that he has lost 35-40% he is not comfortable moving to a new location and buying a house. Which cant say I blame him. I notified my realtor who is just helping me walk through the deal and my realtor said he lost 4 of 5 deals last week because of covid-19 issues...

I am moving forward with snuffing my property up and getting it listed and hoping that I will be able to sell it in all of this. I can see obvious issues selling currently. I am in good position so if I need to turn this place into a rental it will be fine. Not what I prefer on this house but hey idt covid cares what I prefer currently...

I am assuming that lots of house sales are going to be affected by covid issues and not every seller will be in a position to hold or convert into a rental. That being said how much inventory will be available and how low will real estate actually go???

Chris Stroup · Answer

Fayetteville, NC is starting to have some MLS properties drop in price. Also, many sellers are more willing to negotiate due to uncertainty. I am a Realtor and I work with investors and financing hasn't been much of an issue. I haven't had anyone back out of a deal yet. Fingers crossed.

I have had listing agents call me and try and accept low offers that they previously turned down.

Karl B. · Answer

Hello. A rental may be the way to go. Brandon Turner had a great point when he stated that some vacation rental homes will likely sell now simply because the owner is bleeding money due to no/greatly decreased bookings.

Since you're near the water I'm assuming there are vacation rentals near you.

My sister's in the same boat in Scottsdale, AZ - she is looking to buy (she sold her house months ago); I will give her the same advice. I would go so far as sending a letter to every vacation rental I was interested in.

OK - I'm rambling now. How low it goes depends on market as well as supply and demand. I'm selling my house in L.A. and it's being rehabbed. I'm confident it will sell as inventory is low and for renters cooped up in a one or two bedroom apartment I can totally see people wanting to get out of apartment living and into their own home and yard.

Justin Tahilramani · Answer

Chris - let me know if you come across any killer deals. Still buying, but im being WAY more selective.

Anthony Wick · Answer

I've been looking for an 8 plex to purchase, with my partners. However, it would have to be a really good deal right now to pull the trigger. For that type of property, the rents are around $700-850 a month. That means probably service industry type employment for tenants. Even if the building was at full capacity, I'd have questions about who is and who is not paying rents right now.

Chris Stroup · Answer

@Justin Tahilramani - Definitely.  I am going to send you a private message.

Justin K. · Answer

I was trying to work some deals for taking over a guys portfolio but he backed out with what is going on. I am still looking and have my agents looking but there is judt not anything worth pursuing in the areas I am. Time to start looking for a new location.

Deals coming from covid-19?

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