If you were planning to buy or sell a home now and are unsure of where you stand, you’re not alone.
It’s safe to say that the coronavirus has transformed people’s lives in so many ways. with businesses temporarily shutting down, people being asked to stay at home, and a virus that is easily passed from person to person, it has certainly changed the real estate industry and the business of buying and selling homes.
A real estate transaction requires the participation of multiple parties outside of the obvious buyer and seller. Whether we are looking at agents, lawyers, bankers, or underwriters, the nature of the business necessitates multiple people interacting to achieve the most favorable deal for all who are involved. Unfortunately, the COVID-19 Pandemic has obviously upended the industry and the overall landscape for buyers and sellers. One of the biggest questions realtors are fielding daily is whether or not this is a good time to buy or sell a property. Just like the world we are currently navigating, the answer is a bit complicated, but there is tremendous reason for optimism for all.
BUYING
Right now there is a lot of information out there about whether it is a good time to buy or sell. During the holidays it is common for there to be less homes on the market and therefore a bit more competition for what is out there. Still, there is no reason to enter into a deal hastily if everything does not feel right.
If you find a property that you are absolutely in love with, setting up a showing through your agent is a bit different than in years past, but it is still a pretty straightforward process in most areas. There will be a COVID-19 waiver of some sort provided by most real estate brokerages, a requirement to wear PPE and maintain social distance, but other than the clear instructions provided by your agent on how to ensure the most hygienic process is followed, you can absolutely still see a property as you would in the past. There is, of course, the option for a virtual showing in many instances, but for those who want to see with their own eyes, that option is available in most areas, even during the pandemic.
So let’s say you find the perfect property and want to put in an offer. That process would look the same as it does prior to the pandemic. Inspections and appraisals are being conducted in most areas as they have in the past, and mortgage rates are historically low. Something that is absolutely critical to understand is that, yes, many areas are currently in “seller’s markets” but you really need to consider the impact of low mortgage rates. Although the asking price of a property may be higher than normal (especially in areas outside of big cities) due to a shortage in properties, the mortgage rates that are trending at times lower than 3.0% mean huge savings over the life of your mortgage.
Overall, the key to a great buying experience starts with finding an agent that you connect with and explains clearly and confidently what the process will look like during the pandemic. Properties are still available and there are many ways to still go and tour a property of interest, whether it be a virtual or in-person showing.
SELLING
During the COVID-19 pandemic, several areas have seen their property values surge as a mass exodus away from cities has created a low-supply, high-demand situation. Many property owners who have been thinking for some time about a move, or are now considering one due to the pandemic are in a prime position to sell for prices that they most likely would never have been able to list for previously.
That being said, many are weary of having showings take place in their homes, or are unsure of what their responsibility is for ensuring the safety of themselves, their family, and for visitors. Again, the key here is selecting an agent that can confidently guide you through the process and explain to you that there are options. Most areas around the country are not requiring you to make your property available for in-person showings, and you can instead opt for a virtual showing to be created by your agent. If you are choosing to list as For Sale By Owner, the onus will be on you to ensure that protocols are followed and that you are following your local and statewide regulations for real estate.
Right now, depending on your area, many properties are getting into “multiple offer” situations, where sellers are really able to choose what deal will work best for them given their circumstances and timeline. Sellers have a lot of control over the process at the moment as the aforementioned supply and demand issue is driving a lot of competition in the marketplace.
In regards to appraisals and inspections, most of the time this will depend on the company that is performing those. Typically, the inspection cannot be done in any fashion other than in person, but appraisals can be done in a “drive by” manner. Especially as cases surge across the U.S., this may resume as commonplace as restrictions are likely to tighten a bit.
FINAL THOUGHTS
When you are finally able to seal the deal, coming to the closing table is usually a major sigh of relief for all parties involved, and that is still the case even as extra precautions are being taken to ensure the safety of all. It is commonplace at the moment for there to be as limited interaction as possible when closing on a deal and usually only the most necessary of people, like you, your attorney, and the bank attorney, for example, to be present in the same room.
Whether you are looking to buy or sell, the coronavirus pandemic has thrown the real estate market a curveball, but this is a time for adjustment and not a time to stand idle. With the help and guidance of a real estate agent, you can absolutely still find the property of your dreams or find a great offer for the property you are looking to list. Many are keen to wait the pandemic out, which to some is a viable option, but if you are in a position to buy or to sell, there is great opportunity right now to do so, and realtors across the country are taking every precaution to ensure that their clients are still receiving the best and safest service possible.
