Purchasing a Home During COVID-19
- (Photo : Purchasing a Home During COVID-19)
Contrary to what you might expect, purchasing a home is more accessible than usual during the COVID-19 pandemic. The housing market saw historically low mortgage and interest rates and increased demand for homes.
If you want to take advantage of this shift, you have to prepare yourself for a drastically changed process. You'll see different house tours to increased market competition.
The Impact on the Property Market
Past economic crises showed that the property market could take some hits, but a pandemic added a whole new layer to the story.
Luxury, high-end markets suffered the worst hit, which can benefit those looking to buy a bigger, better home on a budget. However, both regional markets and blue-collar suburbs, where people can suffer unemployment, are also affected.
House Price Drop?
As a result, general house prices might see a prolonged drop. Consumers find it more challenging to decide to buy a home due to a lack of job security, so a logical response from the market is a price reduction.
Purchase Procedure Changes
Even with reduced income and fewer house tours, people working in the housing industry are busier than ever. Here are the most significant changes seen in the process so far.
Irresponsive Agents
As one real estate law firm explains, you need a responsible agent to give you timely updates and ensure your transaction is unfolding as planned. Click here to learn more. However, it's a challenge to stay accountable during such a chaotic period, so the service quality is decreasing.
Stern House Tours
Due to the social distancing regulations, you can't merely show up for an open house and look around.
The more stringent process means that you'll have to wear protective equipment, book an appointment in advance, and adhere to all the rules. Sometimes, it'll only be possible to tour virtually.
Bidding Wars
If you find a home you like, be ready to make a competitive offer quickly. Houses, especially those in better neighborhoods, are flying off the market days after listing. Full-cash offers and even driving the costs up to ensure a purchase are quite common.
Financial Scrutiny
If you're taking out a loan, lenders will likely perform a hard inquiry of your finances. With higher demand and unemployment skyrocketing, be sure that your background is clean to secure a purchase.
What You Can Do
While these changes might alarm you and reduce your confidence, they're worth pursuing the all-time low. Here are three things you can do to make it more comfortable for yourself.
Research the Market
If you're recently entering the housing market, don't rush head-first into a deal. Take your time to research the market.
Start with finding an area where you want to live. Then, take a look at available listings, the home values, and average selling prices.
Find a real estate agent whose credentials reassure you and interview them until you find a person you like. Doing the prep work will make the action seem much less daunting.
Virtual Home Views
If you're worried about the health risks of visiting homes or live too far away for appointments, go for virtual tours.
While you won't be able to examine every nook and cranny, technology is now developed enough for these proceedings to be clear and detailed - and whenever it suits you.
Get Home Insurance
These times are challenging and scary. Once you find a home you like, find a reliable insurance company and cover all the bases. Like with home prices, you might have to jump through some hoops, but it's worth the trouble.
Conclusion
The best you can do is stick to the basics. Look into your needs and finances beforehand, find a place and property that suits your needs, and get help from a trusted professional. It might seem daunting, but you'll be glad you did it once you settle in your new, low-interest home.
