Typically, New Yorkers will list their apartments for sale when spring rolls around, as it is a busy selling season. Unfortunately, there is nothing typical about the times that are currently upon us due to the COVID-19 crisis. The spring selling season of 2020 was disturbed by the global pandemic that required people to stay at home, dampening the economy. Owners of NYC apartments that were once considering selling their apartments are now wondering what they are going to do with their apartments once everything is back to normal.
In order to help sellers get through the current environment when it comes to selling, we have answered a few key questions about how to sell your home after a crisis has occurred.
Should you wait to list your apartment or do it now?
One of the most common questions at present among those looking to sell in NYC is whether or not it is a good idea to list now or later. While no one can see the future, there are good arguments in favor of doing either one of them. Some brokers advocate for listing new homes now because of the current supply and demand. Since there are little to no new properties being listed presently, sellers that list right now may get greater interest and attention from potential buyers, leaving them to deal with less competition than during ordinary times.
On the other hand, some brokers say that waiting until the situation is clearer is better. Because of the limited number of sales, there is little information that can be relied on for pricing guidance. Though you might be comfortable taking the risk, you might not want to go in completely blind if you like having data before making decisions.
While both strategies have their benefits, it is important to think about whether you want to sell or you need to sell. At the end of the day, if you need to sell your house, you might not have the privilege of waiting to see how things pan out. Or you if you have been thinking of sell my house fast to an investor, that might also work as there is no inspections, mortgage approval, repairs, or commissions nor fees.
How can you get more money from the sale of an NYC apartment?
When you are choosing between real estate brokerages, it isn’t a good idea to opt for the first broker that you meet. Instead, it’s better to interview a number of them and then negotiate the listing commission first. Today, there are financially sound options as opposed to traditional brokerages that can help you save much more compared to the typical five or six percent commission that is common in NYC.
Do all NYC brokers give virtual tours?
One of the good things that has come out of COVID-19 in terms of the real estate business in NYC is that there are more virtual tours than ever, using more sophisticated technology than ever. These immersive tours can help buyers see what they’re getting into before they dive in. Even so, not all brokers in NYC will give the option for a virtual tour. Before you choose a listing broker, ask to see some examples of the virtual tours that their firms offer. In order to maximize the marketing of your apartment, you might want to make sure your broker provides them in the first place and is using top quality tour technology on top of it—not just their smart phone.
A virtual walkthrough experience that is created with high quality technology will offer a more realistic feel of the apartment, which can entice buyers more easily. They are also a great resource for a listing agent to give out during video calls with agents and buyers in order to discuss the tour and show off the best features of the home.
There are many benefits of a virtual tour. For one, it offers marketing content that is richer to show off more details without having to undergo the risk of a lot of physical traffic in the home. It can also save you time by only having to get the apartment ready one time for the virtual tour instead of having to do so before every single showing and open house. Beyond that, a virtual tour also reduces the number of in-person showings with those who are less serious about buying, so you don’t risk wasting your time.
Can NYC buyers be vetted properly before visits in person?
Before COVID-19, listing agents tended to focus on bringing the most traffic as possible to a seller’s listing. This includes showings and open houses that could help the buyer really fall for the home by seeing the property in person. Today, in order to ensure the safety of the seller and their families, listing agents tend to vet the buyers in a more aggressive way earlier in the sales process before they come into the property.
Listing agents are asking buyers to begin by showing their financial qualifications before they come to the first in-person showing. This was once handled during the process of the offer, but it is now becoming more common for buyers to show their mortgage pre-approval beforehand. Though this could seem like a friction point, it is a safer way to market your property and make sure that only those who are serious about the property will visit it.
What are your building’s rules for showings and visitors?
During the pandemic, co-op and condo buildings throughout NYC have put temporary but strict rules in place that regulate or in some cases, even prohibit any visitors or guests. Though these rules are designed around promoting the well-being and safety of the residents and owners, they could make it more difficult to sell an apartment. Before you get ready to list your property, be sure that both you and the listing agent you’re working with know all of the rules that might be in place in your building when it comes to the pandemic.
Can you get a discount bid?
If you are reading the news, you’ll notice that there are many conflicting opinions regarding whether or not the NYC real estate market will rebound beautifully. No matter what you predict, the uncertainty in the market can bring out those who are seeking deals and who are hoping to enjoy a deep discount.
If you get a low bid, it’s best not to take offense or be alarmed. Just because a buyer offers a low bid for your apartment, it doesn’t mean you have to sell it at that price. Agents and buyers will often share stories about the financial crisis in 2008 and what was believed to be a bleak outlook for real estate in NYC during the time in order to push you into accepting a low price offer. Keep in mind that these are tactics that are specifically meant to move you to action and shake you up.
Rely on your listing agent to show you objectively the offers that are available and help you negotiate them properly.
What buyer qualifications does a co-op board look for?
If you are selling an NYC-based co-op apartment, it might be a good idea to ask anyone you know on the board what qualifications they are looking for in this unique time. These boards are known for having stiff requirements, and because of the current climate, it is possible that they may become even more so. Ask questions at the beginning of your sale in order to avoid delays and headaches when dealing with the board.
Will a sale take longer than usual?
There are a number of steps that take place when selling in ordinary times, so COVID may make it take longer. Contract negotiations and other legal items also come with added steps, and appraisers are given less access to look at apartments. Mortgage underwriters also have stronger standards they need to comply with. There are a number of reasons why your sale may be delayed.