When you look at the professionals who make up any industry, there will always be a bell curve in terms of who is most successful. More often than not, the people at the top of the curve in their respective industries share certain qualities, work ethic, integrity, etc., While this article will not discuss what it takes to be at the top of your game in real estate (Dennis Chernov does provide advice to real estate agents in Rubbing Elbows, Episode #3), we will discuss one particular aspect of being successful in real estate; being able to anticipate things that will effect the market. Sometimes tragedy can be good for business – nobody wants bad things to happen, but the best in the business are prepared for bad things to occur.
On Rubbing Elbows, Episode #3, Dennis and Yana Chernov discussed the nuances of the real estate market. Naturally, they also discussed the realities of the real estate market during the COVID-19 pandemic. Here are a few unpleasant realities that could positively impact the real estate once we have COVID-19 under control.
- Divorce Rates May Go Up
We can’t emphasize this enough – this article is not suggesting these are good things, or that we want them to occur. There is a strong likelihood that we will see an uptick in divorces once the COVID-19 restrictions are lifted. While the truth is that houses aren’t generally sold in dissolution proceedings, the impact of COVID-19 might make that the norm for a few months. In normal circumstances, one spouse is awarded the marital property, and the other is provided with cash value of their 50% community interest in the property. For example, if a house worth $300k is deemed community property, the Wife might be awarded the house in its entirety, while the Husband is awarded an additional $150k of assets from somewhere else. Typically, a house is only sold in dissolution when there aren’t enough assets available to compensate one spouse for their 50% community interest in a property. COVID-19 has thrown numerous markets into a state of emergency, which means it’s entirely possible that there are not enough assets available to offset 50% of a Los Angeles home’s value. As such, it is entirely possible that we see more forced sales as a result of dissolution. Even if this is not the case, people often want to sell their homes as a way to move on a start a new phase of their lives.
- More Homes May Become Available Because the Elderly Are Most at Risk
Most homes are currently owned by members of the Boomer generation, a generation that is unfortunately more at-risk than other generations as it relates to COVID-19. Life threatening events have a way of changing peoples’ perspectives, and it’s entirely possible that members of the older generation will begin seeking living arrangements around more people (their friends, family, etc.,) rather than live at home alone. As a result, a number of homes will become available once this pandemic is under control.
At the end of the day, nobody wants bad things to happen. There is a difference between wanting something to happen and being prepared for it if it does happen (think emergency supplies in case there is an earthquake). The ability to anticipate the market is what separates the good and the great, and the Chernov Team is at the top of their industry for a reason.
At the Chernov Team we understand that knowledge is power, and knowledge of how this pandemic could impact the housing market is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table most prepared leaves with he most, and the Chernov Team always leaves the table with the most.
You can watch Rubbing Elbows, Episode #3 here: https://www.youtube.com/watch?v=cn7_KLqfmh4