You are not alone if you are thinking of buying or selling a home in Salt Lake City. Last month, 2,093 homes were sold in Salt Lake County. That’s a dramatic 15% increase over June, placing Salt Lake as the third fastest-growing market in the nation. A resilient economy, an already existing home shortage, and urban flight are all drivers pushing Salt Lake home demand skyhigh. And long-term growth projections show no reprieve from this demand incline. This intense demand, coupled with tenuous COVID19 circumstances, are creating some unique challenges for buyers and sellers. Be aware of these five things as you buy or sell a home in Salt Lake City during COVID19.
1. Interest rates are low, but non-traditional loans are hard to come by.
According to Kelle Smart from Academy Mortgage Corp, “Mortgage rates have again fallen to a new all-time low…There is a distinct possibility that the average 30-year fixed-rate mortgage could dip below 3 percent.” Prospective buyers are highly motivated to buy now while interest rates are historically low. But if you are looking for a jumbo loan, or are self-employed, you may find yourself in a pinch. These types of loans were shelved back in March. If you need a non-traditional loan, you should begin conversations with your trusted mortgage lender as soon as possible.
2. Bidding wars are common.
A well-priced home in a desirable Salt Lake neighborhood is likely to receive multiple, over-asking offers. The Salt Lake City metro area saw 64% of offers produce above-asking home prices over the past few months. Plan on spending a little more than asking price on a home that you want.
3. Contract cancellations are at an all-time high.
Many homeowners are facing financing issues, or needing extra due-diligence time during contract contingency. In the very least, expect your contract and closing to be delayed. Be mentally prepared for things to fall through. And always have a back-up offer in place.
4. It is safe to show and tour a home without compromising your health.
Realtors are taking extra precautions to keep homeowners and prospective buyers safe. Homes should be sanitized, and booties available. Prospective buyers should bring their own masks. At Niche Homes, we offer virtual tours and open houses. Find out more about our COVID19 precautions.
5. Due diligence and escrow may take longer than normal.
With local governments being closed and mortgage companies backlogged, you can expect due diligence, escrow and closing delays. It is not uncommon for closing dates to be moved back two weeks on average. If financing is an issue, or there are trust or lien questions, expect longer delays.
Navigating a real estate transaction is alway stressful. Add the complexity of COVID-19, especially if you or someone in your household is high risk, and it can seem insurmountable. But now is the peak time to buy or sell your home if you are considering it. As Salt Lake’s premier listing agent, we can advise you on your options and look out for your best interests. Contact us today for a no-pressure consultation and read more about our profit-maximizing listing process including all-inclusive staging.
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