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What Real Estate Investors in Fort Myers 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 Fort Myers should expect during the coronavirus pandemic.

Shift in Demand

As the real estate market shifts towards a scenario with fewer buyers and an abundance of homes for sale, the dynamics of negotiation are poised to undergo a significant transformation. With a surplus of inventory, buyers are poised to gain a newfound advantage in dictating terms and prices during property transactions. This shift in power dynamics suggests that sellers will need to adjust their expectations and be more flexible in their pricing strategies to align with the market realities. Consequently, the era of bidding wars and skyrocketing prices may be supplanted by a climate where sellers must be willing to meet the demands of discerning buyers, potentially leading to a more balanced and equitable real estate landscape.

Price Dip

In times of economic strain, homeowners often face the daunting challenge of maintaining mortgage payments amidst dwindling income streams. This predicament can lead to a surge in distressed properties flooding the real estate market, presenting a silver lining for savvy investors. With homeowners struggling to meet financial obligations, these distressed properties become available at prices below market value, offering lucrative opportunities for those with the means to capitalize. Investors find themselves in a favorable position, equipped with increased negotiating leverage in traditional real estate transactions, thereby widening their scope for securing advantageous deals in an otherwise uncertain market landscape.

The ripple effects of economic uncertainty reverberate throughout the housing sector, dampening prospects for property appreciation and stunting demand for new construction homes. As existing homeowners grapple with financial constraints, the pool of pre-owned properties swells, overshadowing the appeal of new developments. Consequently, housing prices stagnate amidst tepid demand, and builders face diminished incentives to embark on new projects. In this climate, the real estate market undergoes a paradigm shift, favoring opportunistic investors poised to navigate the complexities of a landscape defined by economic turbulence and shifting consumer priorities.

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 Fort Myers 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 Sell My House Now USA today at (239) 360-3176 or send us a message to discuss what real estate investors in Fort Myers should expect during the coronavirus pandemic. 

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