Continue to rent or sell?

Question

I was preparing to sell my house in Washington state, and served an eviction notice to my renters. However, Covid-19 has shut down real estate in my area for two weeks and I’ve seen my home value plummet. Will home values raise after this situation has blown over? Should I still keep preparing to sell, or throttle back and rent until further notice?

Ken Mucha · Answer

If you have renters in place it will be a huge challenge to gain access to show, inspect and appraise due to Covid.  it will be much easier to sell when the renters have vacated.  This would be a good time to re-look at comps and see what your competition is like.  if it does not look good you could get new renters and ride it out or test the market in your area.

Parker Worth · Answer

@Evan Polaski

Thanks for your input. I was looking to sell at the time to take the profit and get a larger/better house. Thanks for the info I will looks for renters ASAP

Evan Polaski · Answer

@Parker Worth what was the motivation to sell before things shut down?  No one knows when things will rebound.  It could be 3 months, it could not hit bottom for 3 more years.

In my market, sales are still happening for good prices.  But for how much longer, I wish I knew.  If I were in your boat, I would probably look for a tenant again, assuming the property cash flows, and go right into a month to month lease.  That will give you flexibility should things come back quickly, without eating all the cost of sitting on a vacant house waiting for it to rebound.