While some feel uncertain about selling in a market like this, some property owners are able to make the most of Covid-19.
Since the beginning of COVID-19, the number of properties available on the market has decreased significantly and a handful of property owners have been able to use the opportunity to get the most for their land. During the current lack of supply, some sellers have kept their properties on the market and were able to accept offers at prices equal to or a bit higher than what they would have gotten before COVID-19. For example, the Housing Price Index for the market in Surrey has risen 1.5% since the onset of COVID in mid-March. This is due to the simple concept of supply and demand. The reason these landowners came out on top, during times most people expected the prices to nose dive, is because of the decrease of good land supply on the market. Investors who are optimistic about prices continuing to rise in the Lower mainland are still looking to buy.
Even though you might have been thinking about revisiting the decision later, given the current circumstances, thinking short-term may be a better opportunity. Since many other property owners are waiting until next year to list their properties in a post-COVID market, there will be a large increase in supply and it will lead to heavier competition. An increase in supply next year could lead to landowners not getting the value they want because their neighbours have lower price expectations. Investors favour landowners that have more realistic price expectations, and an increase of supply could mean sellers are slightly undercutting each other’s prices to get their property sold.
What should you do now if you were thinking about selling in the short term:
Plan out your finances - Why are you looking to sell? How will you invest the proceeds from the sale?
Learn about what changes in your neighbourhood - Review upcoming neighbourhood plans, Town Centre Plans
Learn about the sale activity in the area - talk to a Realtor to learn about exclusive sales that may not be available publicly. Less competition could be a benefit.
Get a property evaluation - Know what your land is worth
Getting advice from a land specialist can help you plan and decide what the best course of action is for you and your family at this time.
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