Buy, Sell, Hold or Panic in Real Estate
Due to the extent of the financial crisis generated from the the Corona Virus, there has been a shift on the already unstable real estate market across the USA. Here in the Tampa Bay area, the changes have been mitigated by economic growth and desirable markets like St. Pete and Tampa.
Buying or selling a home can be a stressful, taxing endeavor. After all, it’s one of the biggest investments and decisions you make during your lifetime.
Selling a home is also anxiety-inducing because it often means the seller is looking to make a profit to put towards another home or needs to rid themselves of the financial burden that homes can often become.
Essentially, selling or panic selling in real estate occurs when an investor or homeowner offloads one or multiple properties quickly, and often for less than market value. The panic is often incited by an economic or emotional, wide-spread incident like the before mentioned Corona Virus.
Multiple homeowners will begin selling their homes, increasing the inventory, and driving prices down further. Here’s what you need to know about panic selling.
Panic Selling Can Negatively Affect Sellers For homeowners, panic selling is often prompted by blockbusting events. A realtor or investor will knock on doors to advise current residents that social groups, usually of a different race, religion, or ethnicity, are purchasing property in the surrounding area. The realtor or investor is hoping to scare homeowners into offloading property for less than market value.
When more homeowners put their houses on the market, increasing inventory, other homes would be valued for less. Not wanting to lose money, more homeowners would list their houses hoping to get out of the area before home values dropped further.
Sellers can also panic sell when a financial shift sets the stock market on a sharp, downward trend. They will also start offloading if investment properties that rely on natural resources, like a lake or ocean home, begin to lack those resources.
What to do? It all truly depends on your long term strategy, consult with your financial adviser, and figure out what is your actual monetary needs and how best to protect it and also figure what is a sustainable income stream.