Real Estate Vernacular is a Changin’
Over the past few weeks we have spoken to a number of clients about specific questions relating to their properties and so we wanted to provide some feedback on how we have responded to and directed them. Some were directly related to Home Ownership but given the broader impac COVID 19/Coronavirus has had on businesses etc. we have included some other questions that have come in.
1. Selling and Buying Real Estate – CONTACT US
We have fielded many questions on this. First and foremost these activities are allowed right now so long as they align with COVID 19/Coronavirus Best Practice guidelines. These guidelines are fluid, which is to say that there have been daily and weekly modifications made to these under the guidance of State, Realtor, County, and Public Health organizations etc. If you are thinking about Selling or Buying Real Estate contact us directly and we can advise of the present situation.
2. Mortgage Payments – CALL YOUR LENDER
A number of questions have related to mortgage payments. The main categories have been: refinancing; cash out refinancing; jumbo loans; interest rates; loan modification and forbearance. With all six of these our recommendation is to talk to your lender or mortgage advisor/ bank before making any changes. As an example forbearance does not mean forgiveness of the loan it literally means ‘holding back’ and terms can differ depending on your loan agreement.
3. Real Estate Metrics – CONTACT US
Is it a sellers’ market? Is it a buyers’ market? Are we in a bubble? As with COVID 19/Coronavirus we are advising client to follow the data. We publish statistics for the Denver Metro area on a weekly basis that show:
Under Contract Listings
Listings Back on the Market
Days on Market
If you are not already signed up to receive these please contact us directly
and we can get you added to the weekly communication.
4. Investment Properties – TAKE GUIDANCE FROM YOU PROPERTY
MANAGER AND FOLLOW LEGAL GUIDELINES
Questions received here have been broadly split between existing Landlords and new potential investors. For existing Landlords concerns expressed relate to tenants present ability to pay, short term changes to
landlord regulations (eviction) and mortgage related questions (see 2.). Our recommendation has been to talk directly to your Property Management Company (PMC) for guidance. If you don’t have a PMC our advice has been to check the existing lease agreement you have with tenants and make yourself familiar with the latest State, City and County Guidelines. Of course if tenants come under hardship we recommend that parties do their best to work out a compromise, amortization arrangements where necessary for missed partial payment rent, with as much grace as is needed during these challenging circumstances. No situation will be the same so you have to act legally and fairly whilst protecting you investment interests.
For new potential investors the present metrics are not indicating a spike in foreclosure/short sale situations so far. This is not to say that things will not change but given the forbearance accessibility the present view is that Home Owners will do all they can to retain their properties especially where they have positive equity.
5. Commercial Property – CONTACT US AND WE’LL CONNECT YOU
WITH OUR COMMERCIAL CONTACTS
Whilst we do not operate in this field we do refer questions of this property type to commercial lenders, commercial realtors and leasing businesses. A couple of questions we have received have been about subleasing a commercial space and selling a commercial property. In these situations we put them in contact with the commercial property contacts we have.
We hope you find this blog helpful and please contact us for more information and or any questions that you may have.