Sure, the Coronavirus pandemic is still wreaking havoc on almost all sectors. The truth remains that there are basic human needs that won’t waver, come rain, come sunshine. Food, clothing, and shelter. The thing is, this global pandemic has affected each of these industries too. So, there are new rules of engagement if you are looking to buy a house during the pandemic or even sell. Some of the effects are favorable to the parties involved while others are simply scary. At the end of the day, you will have to learn how to do the new dance if you are looking to navigate some real estate in the present climate.
- Expect Tougher Credit Requirements for a Mortgage
It’s such a huge surprise that these days, to access the best mortgage rates you have to jump through a lot more hurdles. It’s actually getting tougher and tougher to meet the required credit requirements to actually qualify for a mortgage. In fact, since March, credit levels have dropped significantly and to a whole new low. That’s ample proof that most lenders have tightened the reigns when it comes to giving out mortgages.
That does not mean that it’s practically impossible to get a mortgage, but it was a lot easier when the Coronavirus was not in the picture. On that note, it may be a good idea to get yourself a mortgage broker, they will know best how to ensure that your best foot is put forward. You can equally visit Altrua Financial for ample guidance.
- The market is more competitive
Sure, a lot of people are probably not looking to buy at the moment. Ideally, that would translate to less competition. But the thing is, there are also fewer sellers on the market and as such, it’s a bit harder to drive home a deal. The playing field is leveled, but the effort you need to put into the game is a lot more. So, once you start looking at properties on the market, it’s important to be ready. Even if you don’t get the lowest mortgage rates, be ready to buy before your desired property is snatched off the market.
- Virtual home tours
Of course, limited interaction is a way of life at this point, social distancing and the rest play a big role here. Rather than going for an open house or meeting one on one with the realtor, virtual tours will be held. For the sellers, it’s a whole different ballgame because you have to make sure the home is picture perfect and camera ready.
It’s easier for people to get captivated when they see things for themselves personally. Then on the buyer’s side, you have to try to look past the facade to see what the house really has to offer. It honestly does pose a challenge because there is nothing better than seeing the place in person.
- Realtors may not be necessary
The jury is still out on this one, but the way things are going, some people may prefer to bypass the entire notion of having a realtor. After all, there are no traditional open houses anymore. Even if there were, anyone who values life would not attend. House deals are now being closed in more informal settings and that honestly nudges realtors out of the market.
It’s projected that things are getting to the point that houses will be sold and bought online like a pair of clothes or shoes. Altogether, it’s a sour market for most realtors out there. This is more or less a nail in the coffin since people were already considering whether they need a realtor to sell their homes pre-pandemic.
- There is a lack of choice
There was already a recorded scarcity of houses on the market before the pandemic struck. Now, it’s even worse. At this point, if you are looking to buy, the pickings are quite slim for a buyer. For sellers, it’s even more tricky because some of them have to offer price slashes and discounts.
Nevertheless, the heart wants what it wants, and it’s a big deal to put any amount of money up for a home. Altogether, it makes for a very claustrophobic situation where both parties don’t have the liberty to act or react the way they truly want to. It’s neither a buyer’s or seller’s market.
With the direction things are going, it’s hard to predict how things will turn out. Will things go back to normal, or will this become the new normal. Either way, it’s important to know how to make it out there if you are looking to buy or sell real estate.