Mount Washington is a neighborhood in Baltimore City, Maryland. Learn more about Mount Washington real estate in this market overview.

Mount Washington, Baltimore, MD 21215 - OfferMarket

Mount Washington, Baltimore, MD

According to data provided by the [National Multifamily Housing Council's Rent Payment Tracker](https://www.nmhc.org/research-insight/nmhc-rent-payment-tracker/), across the United States, 84% of tenants paid their rent by April 12th. This compares to 90% the year prior, a 7% decline from March rent. We expect May rent performance will be worse, given limited savings, continued record jobless claims and delays disbursing unemployment benefits and payroll protection loans.

 

## Consumer Spending

 

The US is a consumption-driven economy. Consumer spending comprises roughly 70% of GDP. According to Wells Fargo, consumer spending is down 35% at this point compared to same time last year. As you read this and think about your own changes in spending, this probably sounds quite accurate to you.

 

If consumers don't spend, businesses can't pay employees, tenants can't afford rent. Rent rates either need to be reduced or landlords need to accept lower rent revenue vis-à-vis higher non-payment rates. Other things could happen like employees forced to take pay cuts to keep their jobs, which will have a similar effect. Or we see a material shift from homeownership to renting as people lose their homes which might support rent rates... Lots of different scenarios to consider.

 

To put it another way, lower rental income results in lower [net operating income](https://offermarket.us/real-estate-glossary/noi-net-operating-income) (NOI) which results in lower valuation.

 

## Insight From The Public Markets

 

Looking at public markets, Equity Residential (EQR) is down 25%, AvalonBay (AVB) is down 29% from February 21 highs. Income producing properties are valued based on cap rate, so from this perspective we should expect valuations to decline in the near term. This said, the Fed is pumping money into the economy which as we saw in the Great Recession should cause asset values to increase both as means of chasing yield with interest rates near zero and as a hedge against inflation (holding cash is not good in that environment).

 

## Facing Reality

 

We don't see consumer spending snapping back to pre-COVID levels quickly. This will take time as the consumer needs confidence that their health and job is safe before spending on non-necessities, things that bring them out of their homes. We wonder if this economic shock might condition business and consumer spending to be more frugal over a longer time horizon.

 

## Summary

 

We do believe multifamily residential asset valuations will decline in the near term (now through mid-2021), but continue to serve as attractive long-term investments.

 

That's just our 2 cents, we are not economists but we are data-driven buy-and-hold value investors. What are your thoughts? Are you buying now or are you waiting on the sidelines?

 

## About OfferMarket

 

OfferMarket is a marketplace for single family (SFR) and multi-family rental investment properties. If you are a residential real estate investor or looking to start investing, OfferMarket is for you.

Analyze the data on how COVID-19 is affecting multifamily real estate valuations.

How will COVID affect multifamily real estate valuation?

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A recent survey from the National Association of REALTORS found that just 48% of sellers would use the same agent agin. 

 

​Many sellers are turning to off-market real estate transactions otherwise referred to as For Sale By Owner or FSBO. The same NAR survey found that For Sale By Owner accounted for 11% of home sales in 2018. That's 605,000 homes and roughly $121 billion worth of housing inventory.

 

If you're thinking about selling your home without an agent, you need to understand that all else equal, listing FSBO without an agent results in lower purchase prices. The reason is simple: *the [Multiple Listing Service](https://offermarket.us/real-estate-glossary/multiple-listing-service) (MLS) is an incredibly powerful marketing channel.* This will come as no surprise when you review the FSBO marketing methods utilization rates below.

 

## FSBO methods used to market home: 

 

- None (did not actively market home): 36%
- Yard sign: 31%
- Open house: 24%
- Friends, relatives, or neighbors: 21%
- [Multiple Listing Service](https://offermarket.us/real-estate-glossary/multiple-listing-service) (MLS) website: 20%
- Online classified advertisements: 13%
- Social networking websites (e.g. Facebook, Twitter, etc.): 11%
- For-sale-by-owner websites: 5%
- Direct mail (flyers, postcards, etc.): 4%
- Video: 1%
- Print newspaper advertisement: less than 1%

 

## 91% of FSBO Listings Are Overpriced

 

OfferMarket collected data on over 1,000 For Sale By Owner listings in Baltimore and Tampa and found that 91% of For Sale By Owner listings are priced too high. This results in FSBO listings generating low interest and awareness, taking a longer time to sell, and a higher than average number of price reductions to find a more appropriate market price.

 

We believe the primary reason that the majority of FSBO listings we studied are overpriced is because owners simply do not have the skill, knowledge and experience necessary to list the property at a price point that will attract optimal interest. Many FSBO sellers are simply out of touch with the true value of their home. This is especially true when markets shift from seller to buyer's market, the seller becomes anchored to the higher and no longer relevant valuation range.

 

## [Free Real Estate Valuation Report](https://www.offermarket.us/tools/free-real-estate-valuation?ref=blog-for-sale-by-owner-fsbo-statistics)

 

## FSBO Playbook: Make Buyers Compete For Your Home

 

Just because traditional For Sale By Owner often does not produce as positive an outcome as listing with a real estate agent does not mean you need to list with a real estate agent.

 

If you want to sell your home without an agent, here is the simple playbook:

## 1. Price your listing attractively.

 

Study the current market conditions, identify recent comparable home sales and current listings.

 

## 2. Use your commission-free terms to your advantage. 

 

If you're not paying the typical 5-6% broker commission, use some of your savings to undercut your competition and deliver more value to buyers. A good deal paired with good distribution will capture their attention.

 

## 3. Make your property stand out. 

 

With a limited budget you can make your house worthy of a closer look from interested buyers. 

 
​
- Deep clean ($150)
- Power wash ($200)
- Professional photography ($250)

 

## 4. Make buyers compete for your home.

 

Competition makes buyers submit their best offer and take action quickly for fear of missing out. Awareness drives interest, interest drives competition.

 

When you sell your home with OfferMarket, you pay 0% commission and gain access to a powerful marketing platform that makes qualified buyers compete for your property.

 

## OfferMarket is an alternative to FSBO: [create your free marketplace listing](https://www.offermarket.us/sell?ref=blog-for-sale-by-owner-fsbo-statistics)

11% of houses sold in 2018 were For Sale by Owner (FSBO) listings. That is 605,000 homes and roughly $121 billion worth of housing inventory. Review these surprising For Sale By Owner statistics.

For Sale By Owner (FSBO) Statistics - Real Estate Blogs - OfferMarket

For Sale By Owner (FSBO) Statistics

Grow your real estate investing business with the most competitive DSCR loan product. OfferMarket also provides DSCR rental loans, bridge loans, hard money, fix & flip, rehab, ground up construction loans.

Rental Loans

An eviction moratorium is a temporary halt in evictions imposed at the Federal and/or State government level as a protection for renters affected by a short-term economic shock such as COVID-19.

 

During an eviction moratorium, landlords and property managers are legally unable to evict tenants for nonpayment of rent, in some cases with the stipulation that certain financial hardship criteria established at the Federal or State level is met.

 

An eviction moratorium can cause rental property owners to seek [mortgage forbearance](https://www.offermarket.us/real-estate-glossary/mortgage-forbearance) in order to avoid [foreclosure](https://www.offermarket.us/real-estate-glossary/foreclosure).

An eviction moratorium is a temporary halt in evictions imposed at the Federal and/or State government level as a protection for renters affected by a short-term economic shock.

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