Should I back out of deal? (COVID-19)

[Anthony Fecarotta]

I am in desperate need of good advice. I got under contract on a new house back in early February to close April 1st. My current home (live-in flip) went on the market last week. Illinois has just ordered "shelter-in-place," meaning everything is basically shutdown except for essential services. All my showings have cancelled and the only offer I got was $30k under asking citing "corona virus concerns."

I can backout of my deal now, probably lose my $1000 earnest money and be good. OR, I can roll the dice, dump 35k of renovations into this new place while paying two mortgages for god knows how long, and potentially end up selling both homes at a loss.

I need advice bad. Don't tell me COVID-19 doesn't effect the real estate market when people can't even look at homes without breaking the law technically.