Selling Lake Tahoe real estate during the Coronavirus has a lot of sellers either pausing or trying to pivot in order to achieve their real estate goals while also abiding by local and national health guidelines and protocols. With news changing daily, stock market fluctuations and increasing unemployment rates, some buyers are hitting pause on their decision to purchase. These key factors in any other situation would suggest that a seller’s market is over and we are all of a sudden in the throws on 2008 again. Not so fast! Let’s look at the facts.
Let’s start with supply and demand as that really is the starting point for any conversation. Going into this, inventory across the U.S. was still low with increasing values, which is still the case. The Monthly supply is 4.7 for South Lake Tahoe Real Estate. Anything 4 or less is considered a seller’s market, 6 is considered balanced and 8 is considered a buyer’s market. While we may be moving towards a balanced market, we are a ways off from a place where buyers have the advantage. Lake Tahoe Real Estate, at the end of the day, is a local business so as a seller, it is good to keep on an eye on the national market news, but what is most important to you is what is happening close to home. Plus, everyone has different personal goals when it comes to buying homes for sale in Lake Tahoe. Some people have to move due to relocation while others may have more flexibility and can wait or pause a bit. Also, the Coronavirus contagion cycle is important to keep in mind. If local cases are tapering off, the local market will pick up again. If cases are peaking, you may need to plan on hunkering down for a while. But how the local market is impacted is going to differ from place to place. The bottom line here is that inventory is still low, which means less seller competition which means more buyer eyes on your property.
Is now a good time to offer a lower ask price? There are buyers out there who will try and take advantage of a pandemic and assume a seller is desperate to unload a property. Once again, the market dictates whether this is a good move or not. Currently, a buyer who tries this out runs the risk of offending a seller and not only getting their offer declined but losing out on the house altogether. Right now is just not the climate for lowballing. Actually, lowballing is never really a good thing to do, but that is another conversation. In March, the national median home price went up 3.8%. The median sold price for homes for sale in Lake Tahoe increased 2.1% while the average went up 5.7%. So should you offer less or take a lower offer? Likely not. While you should price based on fair market value, even if you are facing job loss or economic hardship, you still have options. In the state of California there is the mortgage forbearance program as well as other programs that are working hard to keep bills paid and people in their homes. While every situation differs, your South Lake Tahoe Realtor will be a good person to work with as they guide you through the various offers knowing what your personal situation is.
While you don’t need to be taking a step back to 2008 and snatching the first offer that comes in, even if it is super low, you should make sure you have your priorities identified and figured out. How low can you go? What counter offer strategies are in line with your personal and financial situation/motivations? Your Lake Tahoe Realtor can help you craft some beneficial negotiations that sweetens the pot for everyone. For example, maybe you take a lower offer, but the buyer takes the home as is or extends or moves up the close date. You have options when it comes to accepting offers regardless of the market condition and buyer demand and now is no different. Once again, it depends on the market.
For more information on selling or buying homes for sale in Lake Tahoe during this time, give me a call. I would be happy to hear your personal goals and situation and help you come up with a game plan and provide more facts about what to know or expect.