Are you thinking about putting your home on the market? Perhaps you’re looking for a new house to buy.
Regardless, you may have reservations during these uncertain times. However, buying and selling property at this time can work in your favor.
Real estate professionals rely on technology more than ever before. Moreover, virtual tours provide convenience to buyers who aren’t comfortable with in-person meetings. Buyers can view properties without leaving the home, and sellers will contend with fewer appointments.
Buyers can also obtain quality deals due to less buyer competition. Sellers will benefit from a higher pool of qualified buyers. However, sellers and buyers will deal with some challenges along the way.
This article will help you determine if you should buy or sell in this climate. Let’s explore.
From a Buyer’s Perspective
Interest rates are low, meaning you can secure a low-interest mortgage if you qualify. With that, buying a house may come with additional requirements. Some lenders have tightened restrictions due to the expected rise of defaults and delinquencies.
Due to the risky climate, some mortgage lenders have become more reserved. Even if you have good credit and income, certain lenders may be unwilling to take the risk.
If the economic fallout reduced your work hours, you could have trouble getting a home loan. In response to the pandemic, many lenders have raised standards in the following ways:
- Raising minimum credit scores
- Raising down payment thresholds
- Enhancing the income verification process
For instance, certain lenders may require a minimum score of 700 to apply. Further, some lenders have suspended the issuance of jumbo loans. A jumbo loan exceeds limits established by the Federal Housing Financing Agency (FHFA).
As a result, Fannie Mae or Freddie Mac cannot purchase, secure, or guarantee the loan. People looking for expensive homes may have trouble obtaining a jumbo loan.
Despite the hurdles, the current climate allows you to lock down a lower interest rate, especially if you obtain a fixed-rate mortgage.
Additionally, you’ll contend with less competition because there are fewer buyers on the market. Conversely, many sellers are refusing to sell or have taken their homes off the market.
Therefore, you’ll deal with less inventory. On average, most homeowners sell their homes every 12 years. However, stay-at-home orders and public health concerns have scared many sellers.
On the other hand, many sellers are highly motivated due to a financial emergency. Perhaps their employer laid them off or reduced their work hours. Further, more sellers are motivated enough to offer seller financing.
From a Seller’s Perspective
If you’re looking to sell your house fast, you can still find plenty of eager buyers looking for a great deal. Selling a house is easier due to increased interest and fewer homes on the market.
In some cases, homes can sell within days or hours. Overall, the housing market keeps on ticking because people still need homes. In particular, many buyers are looking for low-priced homes to save money during these tough times.
On the negative side, a buyer could issue a low-ball offer, hoping you’re desperate enough to accept the deal. If you’re in a stable position, you can hold out for a better buyer or negotiate a suitable price.
Many sellers are also concerned about the fewer buyers due to lockdown orders and financial hardship. Even though there are fewer buyers overall, strict lending mandates have filtered out buyers who are less qualified. This means you’re more likely to deal with stronger buyers who can proceed without delay.
Plus, sellers will deal with less competition since fewer people are selling their homes. To boost your chances of selling your home, take the following steps:
- Increase marketing efforts
- Price your home appropriately
- Maintain your home
To make buyers more comfortable, consider virtual tours.
With virtual tours, you can also reach more potential buyers who otherwise wouldn’t schedule an in-person appointment. You can enhance your virtual tours by:
- Expanding your staging budget to make a better impression.
- Using 3D virtual tours to give buyers a robust view of your home.
- Using high-quality video technology and equipment to enhance the visuals
Talk to a real estate agent about virtual tours. They can provide the best tips on creating a stellar virtual presentation.
Many agents will also conduct live virtual tours, allowing buyers to ask questions on the spot. You can also hire companies to stage your home and film the tours.
The Rise of Expediency
Due to the pandemic, all parties can conduct business through virtual means.
- Example: Meetings are more likely to take place via Google Hangouts or Zoom.
Transaction participants will also share more docs digitally, allowing parties to sign paperwork faster. Also, 23 states have allowed notaries to certify documents without a physical presence. Further, this trend will expand to more states in the future.
In some cases, lenders have allowed appraisers to appraise a home by driving past it or observing photos.
With that, in-person showings and interactions are inevitable. Buyers and sellers should sanitize all surroundings before meetings or showings.
If you’re a seller, sanitize all surfaces doorknobs, and light switches. If you’re a buyer, bring a pack of hand wipes or a mini bottle of hand sanitizer. All parties should wear masks when discussing the transaction. Everyone should also social distance accordingly.
Is Buying and Selling Property the Right Move?
Buying and selling property in a covid world can benefit both sides. For buyers, they can get a low-interest mortgage and secure a quality deal from motivated sellers. However, more lenders are tightening restrictions.
For sellers, they will deal with more qualified buyers who have passed the tougher standards. However, there are fewer buyers in the market.
Are you thinking about selling your property? Read more on our website to learn about visual walkthroughs.