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How to Sell Property in the USA Fast in 2020?
If one was to look at what is happening around the world from the perspective of a historian, it would only be apt to describe the 21st century as Before and After the outbreak of Covid19.
The Corona Virus has succeeded in shutting down the entire global economy and the overseas property market; the United States is no different.
The USA is in an extended lockdown at the time of this writing. These are highly uncertain times when people are more worried about staying alive than about investing, buying a house or even getting back to their regular jobs.
Developments are still very fluid, and uncertainty over the economy is perhaps more devastating than the actual damage caused by the virus itself. The lockdown has impacted most of the sectors of the economy, some more than others.
The stock market has been hit very badly, and the impact on the property market is just as severe. While it is true that real estate does not quite suffer as much as the equity market when the economy looks bleak, fact is both residential and commercial property prices have taken a massive hit.
Which is why if you want to sell property in the USA fast in 2020, we must warn you at the outset that it’s not going to be easy. According to a recent Gallup poll, less than 50 percent of Americans still think it’s a good idea to buy a property.
The last time things were so bad was in 2008, when the property market really took a toll because of the subprime mortgage crisis.
According to Gallup: “Americans' opinions about the housing market have shifted dramatically as the U.S. economy has abruptly slowed down in attempts to stop the spread of the coronavirus.”
The New York Times got it absolutely correct, with the headline: Desperate Sellers, Nervous Buyers: Real Estate Sales in a Pandemic.
In New York State, it has become extremely difficult for real estate agents to do their job as stay-at-home orders are strictly enforced. Agents are forced to look at highly unconventional methods to sell property, such as interacting with clients on Skype, pitching the house on FaceTime.
Although it’s a buyer’s market – buyers are not so keen to buy either, as there is no way for them to physically visit the property under the lockdown.
Another major problem seems to be that the Chinese interest in US properties is now almost gone – disappeared.
High net worth individuals from China have been among the biggest foreign buyers of US properties. But that may not be the case any longer.
There is currently a lot of bitterness and resentment against China for their perceived role in the spread of the Covid19 epidemic. The recent spate of racist attacks on Chinese tourists in the USA has made any wealthy Chinese very wary about buying property there.
Jill Ji, a Chinese-American real estate broker says, “The challenge is, in the short term, we talk about the coronavirus, it’s travel restrictions. They can’t physically come to visit the property. I had people during the Chinese New Year who wanted to come here and look at properties, but they weren’t able to do it because of the outbreak in Wuhan. I also had one person for July, but I am not sure if she is able to come.”
Jim Costello, the senior vice president of Real Capital Analytics says, “It’s going to be hard to disentangle how much of a slowdown will be from the coronavirus versus other existing challenges that Chinese investors have had. If we go back to 2016, that was the peak period for Chinese investment in the United States. In commercial real estate, that was about $19.1 billion in a single year. In 2019, there was only $800 million of investment, so there was a pronounced slowdown. Even if we have a slowdown in 2020, it’s going to be fitting that existing pattern.”
So, again, the question is how to sell property in the USA in 2020 fast?
Well, you can’t do it yourself, and there is no point hiring a local real estate broker as they will not have access to overseas buyers. Hire an overseas property expert who has contacts/relationships with wealthy, sophisticated buyers from Europe, Asia and the Middle East, who have some serious money – or cash - to burn. Do contact us to know more.