In more ways than one, it is safe to bet that COVID-19 has upended our lives. Plus, with companies temporarily shutting down, folks asked to remain at home and a pandemic that easily is passed from one person to another, it certainly has changed the real estate sector and the business of selling and buying houses.
You will notice that we said “changed,” and not “stopped.”
With social distancing steps in place and shelter-in-place orders in several states, most are wondering “Is it possible to purchase a home during the coronavirus?” The short answer is yes. But the circumstances are unique and require more patience, new resources, and more ingenuity to pull off. Read further to learn about how social distancing is impacting the home-buying process for sellers and buyers and how to successfully sell and buy a house during the pandemic.
How Is Social Distancing Impacting Buying A Home?
Social distancing is the process of purposefully making space between yourself and other people to stop the spread of sickness. In the instance of the coronavirus, the suggested space is a minimum of 6’. Social distancing might include remaining at home, keeping 6’ of distance from another individual when in public, canceling events that have more than 10 people, working from home or closing schools.
Since much of buying and selling a home involves one-on-one interactions and several visitors entering a house, social distancing has challenged this process in several ways. In the world of real estate, social distancing might involve canceling walkthroughs and open houses, relying on virtual sessions with relators and figuring out new ways to perform closings and appraisals or, at least, conducting them with a lot more caution.
In conjunction with required measures of social distancing, the concern with spreading the disease has made it more difficult for buyers to view the house in person. Sellers who still reside in the house might not want strangers inside their home. Along the same lines, homebuyers might not want to go into an unfamiliar place. Both sides might be concerned about someone leaving or coming in with the coronavirus.
What Are the Pros and Cons of Purchasing A Home During the Pandemic?
The way the virus is currently impacting the real estate sector brings about both cons and pros to moving.
According to one realtor, if someone wants to buy, there is less competition, as lots of folks are on pause. With property showings limited, the likelihood of getting in a multiple bid event is reduced. There might be a chance for buyers to negotiate even better terms; that is, closing date and price.
Buyers also may obtain better terms on their mortgage due to the federal rate cut.
According to expert real estate agents, rates are presently at record lows. Low rates mean lower payments. Plus, because no one is certain how long this period will last, it is believed that rates will remain like this for quite some time. We are on the front end of what might be a historic financial slowdown. Because businesses are shut down for an unforeseeable frame of time, it is likely that rates will continuously, indefinitely stay low.
While this uncertainty surrounding our present situation creates one-of-a-kind advantages for purchasing a house during this time, it’ll also creates many disadvantages.
According to an expert broker, some buyers are being laid off or losing jobs, which may impact if they’re eligible for a loan. Some deals which are pending might fall through. Plus, with companies closing and folks working from home, banks and title companies might not be as efficient.
In conjunction with the possibility of deals falling through or taking much longer than expected, experts bring up one additional point – not having the ability to make a deal at all. Or, worse yet, they might completely regret the purchase if they must buy a house sight unseen.
Experts say that for a lot of their buyers, they’re concerned about being able to write an offer from virtual showings alone. A few buyers aren’t at-ease with house sight unseen unless a contract is subject to a 2nd physical showing of the house. Plus, they might have buyer’s remorse after they see it in person.
What Are the Pros and Cons of Selling Property During a Pandemic?
Many professionals in the real estate industry agree that the main advantage that sellers have now is that there’s less competition because many sellers are pushing pause. Plus, with folks forced to spend more time in their homes and figure out ways to pass time, more eyes might fall on your listing.
If someone wants to sell, inventory stays low, and the majority of buyers are scouting the Web for the house that matches their needs. They receive maximum digital visibility and exposure, therefore giving them the best opportunity of selling their property within their ideal timeframe.
But remember that while you might have less competition within this time, you also may have less buyers.
With folks switching their focus to their safety and health, there might be less interest in home hunting during this time. They might not want to – or aren’t permitted to – stroll through a stranger’s house and place their health at risk. There’s also an uncertainty of whether they’ll have the ability to make a payment down the line, with so much uncertainty over our economy and folks getting laid off left and right. They might choose to wait it out and see where their finances are when the fallout from the coronavirus reveals itself and passes.
For sellers still having a pool of possible buyers, the majority, if not all, will be virtually viewing your house. Due to this, technology problems or any lack of preparation also can hinder a sale. Odds are sellers might be responsible for taking pictures and virtual tours of their houses while social distancing. It might pose an issue for the ones lacking professional equipment or photography skills, which includes knowledge of proper angles and lighting techniques. In addition, sellers might experience problems sending and uploading videos and photos, as well. All of that may have a negative effect on how home hunters see your house – and a virtual view is all some sellers are going to have the ability to provide. Experts warn that not getting a great initial impression on the internet is going to hurt the seller’s prospect for selling a home at top dollar.
Ways to Sell or Buy Property During a Pandemic
Now that you know that it’s possible to still sell or buy property during the pandemic, here is how you can do it safely.
First of all, experts say that sellers and buyers must follow all recommended CDC guidelines. They also should follow the executive orders and guidelines set forth by their local governments and state. You also will have to rely on technology. Plus, if you must enter a seller’s house, taking the proper precautions keeps you and the seller safe.
Is It Still Possible to Look at Homes While Social Distancing?
It is more likely that you’ll virtually view the home, and not in person. Within this time, sellers might prefer not to host walkthroughs or showings. Within some states, particularly the ones highly affected by the pandemic, executive orders might require sheltering in place.
Experts say that for sellers and buyers, virtual showings are encouraged. If you prefer physical showings and it is permitted, use some hand sanitizer before you enter the house and do not touch anything in the home. Best practice includes keeping your hands inside your pockets.
Experts recommend respecting a homeowner’s house and be certain that if you’re sick that you cancel a showing or have an agent perform a virtual tour. Health always comes first under today’s circumstances.
If you are a seller who still has plans on hosting showings in your house, you still must comply with all guidelines set forth by the CDC, including:
- The use of PPE, like masks, gloves, or booties
- Using hand sanitizer when entering a house
- Required 6’ of space between visitors
- No more than ten people inside a house at a time
It might be smart to take even more precautions, such as asking guests if they presently feel sick and if they have recently traveled out of state. Just ensure that you ask those questions of all possible buyers in order to comply with fair housing.
According to professionals, to restrict the buyer’s physical contact with a house, open doors and turn on lights before showings. It is okay to limit guest touring specific areas.
When the showing is done, be sure to clean all surfaces of the house. Sanitize the home’s surfaces, particularly handles, doorknobs, and kitchen surfaces after each showing for additional measure.
While it may be intimidating to buy a house sight unseen, entering a person’s house or permitting others into yours is a huge risk during this time. Only consider virtual showings.
Are You Still Able to Get A Mortgage During a Pandemic?
It’s still possible to get a mortgage during this time and it might be an excellent time to do it because rates are low. Thankfully, the majority of the process for obtaining a mortgage may be done on the internet and some kinds of loans are relaxing some loan standards, considering social distancing measures and contagious nature of the coronavirus. For instance, some loans might permit exterior appraisals and have inspection waivers. Some are permitting borrowers to check employment via an email from an employer or year-to-date paystub rather than the majority of recent pay stubs. It’s better to call a home loan professional to check what’s needed of you based on the kind of loan you will receive. You also should look at your job stability and future and current financial situation while considering if this is the proper time to take on such a big financial responsibility. Just because you might have the ability to get a mortgage does not mean it’s the proper time to get one.
Is It Still Possible to Get an Inspection and Appraisal During the Pandemic?
Appraisals are actually a requirement for all loans and typically require the appraiser to enter and stroll through your house. With social distancing requirements in place and concerns for the safety and health of the appraiser and homeowner, that cannot happen. Therefore, as aforementioned, most loans are permitting “drive-by,” or exterior appraisals.
The inspection is one other critical part of the process of home buying. They aren’t needed for all loans yet are needed for some. But, to conduct an inspection, the inspector has to enter the house and assess major parts of it. Fear of safety and social distancing, again, make that more challenging. Thereby, several loans are waiving inspections.
But here is something you should consider: Whether recommended or required, if you’re able to get the inspection, you should. It’s a detailed look into the inner workings of the house, concentrating on the property’s condition, which includes the roof, foundation, plumbing, electrical, cooling and heating. The inspector may see any red flags which might impact the value and safety of the residence. While inspections may be waived, it might be a risky move not to get an inspection.
Are You Still Able to Close on A Home While Social Distancing?
Usually, the closing process, including notarizing and singing documents, has to be performed in person. But an increasing number of states are making online notarization and signature policies. A few states are figuring out other ways to get paperwork signed, such as meeting through windows, exchanging paperwork by placing them at least 6’ away from a notary before leaving, and utilizing hand sanitizer.
How you close is determined by the regulations of your local government, as well as the technology that is available to you. If you have to sign paperwork in person, expect a few possible delays.
Should You Sell or Buy A House During the Pandemic?
Whether it is the proper time to sell or buy property right now depends on your circumstances. While some might have the ability to wait it out, other people might be relocating for a new occupation or might be eager to sell in order to cut costs or downsize. If you are worried about your finances, unsure about the future, or are experiencing cut hours or a job loss, you might consider holding off. If you are in good financial shape or have to sell or buy during this time, compassion and patience are key.
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