How To Buy Or Sell Your Home During A Pandemic
The COVID-19 pandemic has swiftly spread throughout the US greatly affecting the real estate market. It has been swift and far-reaching, with the U.S. real estate market seeing its fair share of change and uncertainty. Many people are now asking if the real estate industry is going to close for the time being. So, we are here to present you with a guide on how to buy or sell a home during a pandemic hoping it will give you some insight.
The people have not stopped buying and selling real estate but the process through which they go about it has changed. Many buyers and sellers are moving to a more virtual method to go through with the process. Government social distancing regulations vary by state, county, and city. Some states never instituted stay-at-home orders. Others plan to reopen soon, and still, others have not set a date to end strict shelter-in-place requirements. Rules about whether real estate is an essential service during a stay-at-home order also vary.
Effect on the Real Estate Market
If it continues like this it is likely the real estate market will crash. Most likely more houses are going to come on sale soon. Over the past few weeks, Most of the US sellers have been pulling their homes from the market. This is a huge decrease in the Annual listings. The real estate market has been dropping as of recent as many people are pulling out their property.
One of the main challenges as of now is getting your mortgage approved by the banks. A professional moving company in Los Angeles is still hired during a pandemic. The Government has come out with safety concerns for the real estate industry as it involves direct involvement. In many states, the process of showing the house and signing the deeds have all gone virtual.
Changes In Buying And Selling A House During Pandemic
How to buy or sell a home during a pandemic isn’t that different from normal, there are just a few added rules. The stay at home orders in Los Angeles hasn’t stopped people from buying or selling property. Commercial Movers in Los Angeles have been in work a lot recently as many people are in need to move stuff from their workplace back home.
Since interactions between people have stopped agents have found a new way to interact with potential buyers through video calls. All the regular steps are changed with the social distancing in place. For instance, Sellers are touring the home without the homeowners in the house and the final deed is also signed away online.
Credit Requirements For Mortgages Are Now Stricter
Lenders have made it harder for people to get mortgages during the pandemic. If you have a low credit score you will likely not be able to get a mortgage. As jobs are also closing down due to this the banks are limiting who they give the mortgage too.
Virtual Home Tours
Open house tours are not allowed in many locations so sellers are now moving onto virtual to give potential buyers a view of how the house looks like.
Appraisals Using Drive-By
Normally Appraisals are done to check the mortgage value of the house by assessing the condition of it from inside. Now they have changed it allowing alternate methods.
Inspections Done Unaccompanied
Since in many locations social gatherings are not welcome potential buyers are not allowed to be in the same house with the agents. As such the agents take photos and videos for the buyers and answer any questions they have later.
Closings Done Online
In many states, the closings of the house to sign over the deed are done online. Not many states apply this though as many still recommend doing it in person.
Added Coronavirus Clauses
During the pandemic of COVID-19, many people are not sure if they will be able to move or not. This could affect both the buyers and sellers, so a new coronavirus clause is now added for any delay or cancellation to protect both the buyers and the sellers.
Proper Time To Buy And Sell A Property
In the long term, we are not sure how the coronavirus will affect the real estate market. This change is not necessarily a bad thing to happen to the buyers, as the price of costly houses has been dropping as of recently. The luxury houses are no different as this price drop hits them too.
During the pandemic and due to the price drop many sellers are putting their house on hold as they don’t want to suffer a loss. When the pandemic is over we expect there to be a huge rise for people wanting to buy houses as more houses and more buyers will be looking for houses in the market greeting increasing the amount of competition. Residential Movers in Los Angeles are standing ready to help you move to your location so the process of moving is no problem.
Many tenants wait for the right moment to buy a house to finally move out but due to this pandemic, many of them have paused for the moment. The Real estate market is still holding strong, however, for the first time in years a rent versus buy case has come up as low-interest rates combined with the price drop have made people think of buying it instead of renting out.
Tips For Buying Or Selling A Home
Here are some tips if you’re thinking about buying or selling now:
- Carefully consider whether you’re financially and emotionally ready to buy a home and whether you need to move right now. It may be better to postpone if you’re just toying with the idea or worried about losing your job.
- Shop at least three lenders to find the best rates and get preapproved for a mortgage before you start looking for homes. Know that lenders are also grappling with the effects of COVID-19, and the process may move slower than normal.
- Don’t be surprised by a competitive market. There may be fewer buyers out there, but there are also fewer sellers.
- Stay updated on state and local regulations and be prepared for a process that looks different from business-as-usual.