Skip to main content

What Real Estate Investors in Southwest Michigan Should Expect During The Coronavirus Pandemic

The coronavirus pandemic has a lot of people wondering what will happen next. We can only use our previous economic experiences to understand what this situation would mean for property owners and real estate investors. Here’s what real estate investors in Southwest Michigan should expect during the coronavirus pandemic.

Shift in Demand

The real estate market is expected to start having fewer buyers and more homes for sale. This means that buyers will have the upper hand during real estate negotiations. There will be less demand for homes, so the sellers will have to be willing to sell at what the buyers are willing to pay. 

Price Dip

Homeowners may be losing income and might not be able to afford their mortgage payment. There may be a surge in distressed properties, which means real estate investors can pick up properties for less than market value. They will have more negotiating room when it comes to traditional real estate purchases. Housing prices in general will not be increasing, and there will be a lack of demand for new construction homes since pre-existing homes will be readily available.

Distressed Sales

This is expected to be a great opportunity for real estate investors because of the increase in distressed home sales. The coronavirus pandemic has put an incredible amount of people out of work and incredibly uncomfortable financial situations. Selling their house might be the only way out. This means they probably won’t haggle much on the price if they aren’t getting many offers. These sellers, however, may be a little more emotional than usual, so do take that into consideration while in negotiations.

Low Occupancy

Real estate investors that own short term rentals or vacation property rentals should expect to have extremely low occupancy rates while the coronavirus pandemic is going on. Most people will not be vacationing or visiting relatives while safer at home orders are in effect across the nation. In addition to the homeowners, vacationers may have lost the income needed to go on these trips. You may need to lower your rates temporarily to attract short term renters. Even if you don’t charge full rent, you will be able to cover at least some of your expenses. 

Eviction and Foreclosure Suspensions

Real estate investors in Southwest Michigan should expect to suspend any pending evictions and foreclosure measures on any tenants during the coronavirus pandemic. Essential-only work orders and safer at home orders have caused an unprecedented amount of unemployed workers, which means they may barely be able to afford food and may not be able to afford the roof over their heads. Under normal circumstances, these people would most likely be evicted, but during the coronavirus pandemic, the eviction must be suspended to give them time to come up with the unpaid rent. Any property owners with mortgages that have also experienced unemployment may also not be able to pay rent on time and under normal circumstances would have foreclosure proceedings drawn against them, but during the coronavirus pandemic, these proceedings must be postponed. 

Tighter Mortgage Lending

With the drop of the mortgage rate on loans, there is a gigantic surge in applications for mortgages on real estate. With this large influx, the mortgage originators must start to have tighter restrictions in order to refrain from over-lending. Lenders might require a higher credit score or a larger down payment. 

This is an unprecedented time. These are what the real estate analysts are predicting to happen based on situations in the past. Please call I Buy SW MI today at (231) 392-3262 or send us a message to discuss what real estate investors in Southwest Michigan should expect during the coronavirus pandemic.

Labels:

Comments

Post a Comment

Popular posts from this blog

4 Common Mistakes to Avoid When Buying Land In Muskegon MI

  Astute investors in the real estate realm who aim to broaden their investment portfolios comprehend the promising returns and countless innovative applications that land can present. Frequently, these enterprising investors merge their diverse business ventures with real estate investments to not only generate wealth but also expand their enterprises by developing a tract of land. 1. Neglecting to conduct proper due diligence ranks among the most crucial errors to steer clear of when purchasing land in Muskegon MI. This entails thoroughly researching the property before presenting an offer, encompassing an assessment of zoning and land use regulations, environmental considerations, as well as the availability of utilities and access. 2. Lacking a well-defined investment strategy stands as another prevalent error—failing to establish a clear plan before acquiring land. It is vital to determine your objectives, whether they involve long-term landholding or targeted developme...
Post a Comment
Read more

5 Things to Know Before Selling Your House to a Cash Buyer in Traverse City, MI

Selling your home in Traverse City, MI to a cash buyer offers a convenient and often faster alternative to the traditional home-selling process. Whether you’re in a hurry or need to avoid the hassle of repairs, a cash sale can seem like the perfect solution. But before you rush into a deal, there are some important things to understand. Here are the five key factors you should know before selling your house to a cash buyer in Traverse City. 1. What “Cash Buyer” Really Means — And What It Doesn’t When people think of a "cash buyer," they might envision someone with a suitcase full of cash ready to buy your house. But in reality, the term “cash buyer” simply means that the buyer does not need a mortgage to purchase the property. The funds for the home are typically transferred directly from the buyer’s account to the seller’s, often within a few days, making the process much faster and simpler than traditional sales. However, it’s important to note that “cash” doesn’t alway...
Post a Comment
Read more

Can I Sell My Fire-Damaged House Fast in Muskegon, MI? (Yes - Here's How)

  Introduction: Selling a home after a fire can seem like a daunting task. Whether the fire caused significant damage or just minor repairs are needed, it’s essential to understand your options and the process of selling a fire-damaged house. In Muskegon, MI, many homeowners face this challenge due to various causes of fires, including electrical issues, cooking accidents, or even natural disasters. If you're looking to sell your fire-damaged home quickly, you may wonder if it’s even possible or if you’ll lose money on the deal. The good news is: yes, you can sell your fire-damaged house fast in Muskegon, MI, and we’re here to guide you through the process. Here’s how. 1. Understanding the Impact of Fire Damage on Home Value The Different Types of Fire Damage: Before you consider selling your fire-damaged house, it's important to understand the extent of the damage. Fire damage typically falls into several categories: Structural Fire Damage: This includes the impact on the wal...
Post a Comment
Read more