Indianapolis has been experiencing a seller’s market; a time where sellers could put a house on the market and expect offers within days, if not hours. Coronavirus could slow this process down a little bit, so sellers should expect more days on market as a part of listing their home for sale.
It’s impossible to say exactly what effect the pandemic is going to have on real estate prices. While major economic indicators like the unemployment rate do typically have some effect on real estate prices nationally, property owners in the Indy area will need to wait and see whether or not they’ll be getting less for their property in the short-term wake of COVID-19.
The Corbett & Co team spends a lot of time every week analyzing the trends of our local market, and though the story changes a little bit every week, a couple things have been clear so far. First, we haven’t seen a dramatic drop-off in price. Depending on the sector of the market, there may be some decrease, but not anything like we saw in 2008.
Second, home equity and inventory levels have remained relatively steady too, so combined with lower than typical mortgage rates, this is still a statistically great time to buy or sell a home in Central Indiana.
One thing is clear; the comparable sales from six months ago may not be the best indicator of the expected price, so make sure you are dialoguing closely with your Realtor to set price expectations and set up a good strategy for negotiating once an offer comes in.
The Corbett & Co team has been observing a higher occurrence of lower than average initial offers on homes, so if this happens to you, don’t take it personally. Market uncertainty tends to widen the gap between a buyer’s and seller’s opinion of value. As experienced negotiators, our team is confident we can get you the absolute best price possible for your home.
Also, be prepared for new contingencies on contracts. Clauses guaranteeing buyers the ability to walk through a property prior to closing, or the option to pull out of a contract due to sudden job loss are going to be commonplace for a while.
Finally, expect some extra diligence from your Corbett & Co team member prior to recommending the acceptance of an offer. We’re working hard to research a buyer’s situation and financial qualifications, asking for documentation from lenders, etc, to put you in the best position possible to see a contract on your property through to fruition.
- Be prepared for longer days on market
- Stay in close communication with your Realtor about price negotiation strategies
- Be prepared for some unusual contingencies
- Coordinate with your Corbett & Co team member about your buyer’s qualifications and how they are working to make sure any offers you accept actually close