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The travel industry has changed significantly over the past decade. With the popularity of vacation rentals advertised by such sites as Airbnb, VRBO, and Home Away, travelers have more options than ever for lodging during their vacation. Unfortunately, 2020 has seen a serious decline in travel due to the COVID-19 crisis and many owners of these short-term rental properties are wondering what to do.

If you have a short-term rental property, you might be wondering if this is the right time to sell. Here are a few considerations as you weigh your options:

• Long-Term Goals – While travel is down significantly right now, this slump won’t last forever. If this property is part of your overall investment portfolio which makes sense for the long run, consider other strategies to keep the rental. If you have a mortgage, speak to your lender about payment options during this time.
• Housing Inventory and Local Home Prices – Housing inventory is down about 20% year over-year according to the National Association of Realtors®. Lower inventory has also prevented home prices from falling in most areas.
• Historically Lower Interest Rates – Interest rates have dropped significantly since the beginning of the year. It might be time to refinance the property. In addition, if you do decide to sell, buyers are better positioned to buy.

This is a confusing time for everyone. The robust business of short-term rentals has certainly been affected over the past few months and the travel industry will suffer this summer. If you own a short-term rental, consider all your options as you decide whether it’s the right time to sell your property.

Buying a home is exciting. Most people have visualized their dream home—large,
inviting kitchen; multiple bedrooms for family and guests; perhaps a backyard
with built-in BBQ, pool, and fireplace. Yet this dream is often out of reach
financially for first-time homebuyers. These buyers are ready to find a starter
home and perhaps are wondering if saving for a forever home makes more
financial sense.

Before making this decision, it’s important to consult with a professional financial
advisor about your unique situation; more often than not, getting a starter home
makes the most sense.

Things to Look For in a Starter Home vs. a Forever Home

As we already mentioned, a starter home probably won’t have all the features
you dream about, so it’s important to understand the difference between “want”
features and “need” features. For instance, the number of bedrooms might be
more critical than the huge, eat-in kitchen. Finding a home near a park for the
kids might take precedence over the expansive view of the water.

Focus on affordability and find a home that suits not only your immediate needs
but offers the ability to grow in equity. Your starter home should be viewed as a
financial tool to build wealth and position you to move up to your forever home.
Building wealth through homeownership is a great way to ensure you’ll be able to
buy that dream home when you’re ready.

Even during the COVID-19 outbreak, real estate transactions go on. Buyers and sellers still need to move, and the industry is looking for new ways to accommodate both the needs of the transaction and, of course, the safety of everyone.

Many traditional real estate activities can be performed virtually. While no one is suggesting that a buyer will be comfortable buying a home they have only seen during a Zoom visit, they can minimize the number of homes they physically visit by pre-screening these homes ahead of time through virtual tours.

There are a few vital pieces of the transaction that require in-person visits, however. Among these are home inspections and appraisals. Both of these professionals need access to the property to properly perform their duties, and it leaves some potential home sellers and buyers wondering if it’s even possible to conclude a real estate transaction right now.

While everyone should cautiously move forward according to their personal sense of comfort, there are a few things you can do to protect yourself, your family, and the professionals while they are in your home. Before setting the appointments, think through the parts of your home the inspector or appraiser will need to access and think through the process.

Contact the home inspector and appraiser and work out a plan together to keep everyone safe:
• Communicate with them about off-limit areas, and what parts of the home they can access.
• Have a notepad in which they can communicate what parts of the home they came in contact with, and offer hand sanitizer and wipes for them to use before and after touching parts of the home.
• Finally, leave the home during the appointments, and clean properly once you return home.

Life does move on – if you are trying to buy or sell a home during this challenging time, it might take extra effort. However, working with your real estate team, you can conclude a successful real estate transaction amid the COVID-19 outbreak.