While some say Real Estate should be put on pause right now, many feel like it’s a great time for buyers, while others feel it’s a sellers’ market.
Here’s the information you need for conversations with your clients &/or potential clients no matter which side of the Real Estate transaction they are on.
Why Buy Now?
Buying a house is always both exciting and stressful. But now, with this global pandemic concerning everyone and all the new rules for just being out in public, much less entering someone’s home, some are tempted to pause. HOWEVER, some cannot wait, and others know that with less competition, NOW may be the best time to find a great deal!
Obviously, with unemployment at record highs and massive uncertainty throughout the entire nation, sellers may be desperate. Sure, this buyers’ market may continue for a while even after this pandemic is behind us. But once that happens, everyone from seasoned investors with deep pockets to newly self-proclaimed Real Estate Investors who borrowed a few bucks from Mom and Dad, will be coming “out of the wood work.” Savvy folks know that sometimes, the early bird gets the worm.
Is it even possible right now?
Yes… Government authorities have issued “shelter in place” and “safer at home” directives as a matter of public health. Americans nationwide are practicing social distancing. We are avoiding gatherings of 10 or more people, we are attending school on line, working from home, and staying home except to grab necessities.
Still, in Florida housing is essential and therefore Real Estate and services bundled under real estate as an industry, are essential. These services include appraisals, inspections, rentals, home sale transactions (such as title company closings), etc.
Is it safe to go house-hunting right now?
The safest way to hunt for houses right now is online. Many listing agents and sellers are allowing buyers to view homes through virtual home tours &/or a virtual open house via video &/or livestream.
However, if you wish to view a home live & in-person, real estate agents and sellers should be taking precautions to protect themselves and your health. Make sure that they and you follow all of the CDC and WHO coronavirus-related recommendations: stay six feet away from other people; refrain from touching your face; wash your hands frequently or use hand sanitizer; etc.
Be aware that sellers might ask you to take additional steps or precautions to keep their homes clean, and be willing to follow any extra instructions.
Is it safe to get an inspection right now?
It is if you hire the right Home Inspector! (See the posts from the previous 2 months)
What is an alternative appraisal? Can we do that?
An alternative appraisal is a home appraisal that does not conform to the standard Fannie Mae 1004 appraisal, usually because there is no in-person interior inspection of the home. Instead, appraisers use exterior inspections, someone else’s inspection (such as a home inspector), or even a video provided by the seller, in order to assess the home’s quality and condition.
The Federal Housing Finance Agency has permitted alternative appraisals to be used in lieu of a full appraisal through May 17, 2020, as a result of the coronavirus; these alternative appraisals help maintain social distancing while still obtaining a reliable valuation for both the buyer and seller.
Why are mortgage rates so low? Should I lock mine in?
Mortgage rates respond to upward and downward pressure from Federal Reserve rates. When the Federal Reserve rate was slashed to nearly zero in mid-March 2020, mortgage loan interest rates also dropped to three-year lows. Talk to your loan officer or mortgage broker, and your real estate agent, about timing for locking in your own mortgage loan rate if you’re ready to buy right now.
What can I do to make my home purchase easier right now?
Be aware that the coronavirus is causing substantial delays in many parts of the real estate closing process. Whatever you can do to streamline underwriting for your mortgage loan will be helpful; make sure you have all your documentation together and are careful not to open any new lines of credit while you’re trying to buy.
It may be more difficult to secure a mortgage loan right now due to economic upheaval, and that might mean additional hoops for you to jump through to prove that you have the funds and the financial ability to buy. Be prepared to take those steps so the sale isn’t delayed more than necessary.
What happens if there are unforeseen delays?
Real estate contracts include several dates by which different tasks must be completed in order for the contract to remain valid. Those dates include deadlines for the inspection, the appraisal, the closing itself, and moving out. Because so many real estate services have been disrupted by the coronavirus, you should expect delays.
A coronavirus addendum is a clause that your real estate agent can add to the purchase agreement; the addendum extends these deadlines and also pushes out the closing date by as long as 30 days. If you cannot close the home sale within that extra 30 days, then you will have to negotiate and sign a new purchase agreement with the seller.
For more information, check out Buying a Home During Coronavirus: What to Expect and How to Navigate by Amber Taufen (Posted on HomeLight April 3, 2020)
Why Sell Now?
First, realize that many folks unhappy with how things were handled in MI, NY, CA, etc. may be coming here.
Second, remember that the decision to sell is made in several steps. The first step is to decide that you want to LIST your house for sale. You will still have to decide later whether you want to accept, deny, or counter any offers you receive.
Selling a house is always both exciting and stressful. But now, with this global pandemic concerning everyone and all the new rules for just being out in public, much less, allowing others into your home, some are tempted to pause. HOWEVER, some cannot wait, and others know that with less competition, NOW may be the best time to get top dollar for your home.
Obviously, with massive uncertainty throughout the entire nation, any buyers who are looking now are at least serious, and some may be desperate. Ask any car salesperson how confident they are in selling to a buyer who walks onto the lot in the rain. With unemployment at record highs, many people will be forced to sell after this pandemic is behind us. Wait until then and you may “miss the boat.” Savvy folks know that sometimes, the early bird gets the worm.
Is it even possible right now?
Yes… Government authorities have issued “shelter in place” and “safer at home” directives as a matter of public health. Americans nationwide are practicing social distancing. We are avoiding gatherings of 10 or more people, we are attending school on line, working from home, and staying home except to grab necessities.
Still, in Florida housing is essential and therefore Real Estate and services bundled under real estate as an industry, are essential. These services include appraisals, inspections, rentals, home sale transactions (such as title company closings), etc.
Is it safe to show my house right now?
The safest way to show your houses right now is online. You may choose to allow potential buyers to view your home through a virtual home tour &/or a virtual open house via video &/or livestream. Additionally, if buyers wish to view a home live & in-person, you can take precautions to protect them, yourself, and your home. Make sure that everyone entering the home follows all of the CDC and WHO coronavirus-related recommendations: stay six feet away from other people; refrain from touching your face; wash your hands frequently or use hand sanitizer; etc. Finally, you may wish to ask others to take additional steps or precautions to keep the home clean. Feel free to do so, it’s your home & they are your guests.
Is it safe to allow buyers to get a Home Inspection right now?
It is if you hire the right Home Inspector! (See the posts from the previous 2 months)
What is an alternative appraisal? Can buyers do that?
An alternative appraisal is a home appraisal that does not conform to the standard Fannie Mae 1004 appraisal, usually because there is no in-person interior inspection of the home. Instead, appraisers use exterior inspections, someone else’s inspection (such as a home inspector), or even a video provided by the seller, in order to assess the home’s quality and condition.
The Federal Housing Finance Agency has permitted alternative appraisals to be used in lieu of a full appraisal through May 17, 2020, as a result of the coronavirus; these alternative appraisals help maintain social distancing while still obtaining a reliable valuation for both the buyer and seller.
What happens if there are unforeseen delays?
Real estate contracts include several dates by which different tasks must be completed in order for the contract to remain valid. Those dates include deadlines for the inspection, the appraisal, the closing itself, and moving out. Because so many real estate services have been disrupted by the coronavirus, you should expect delays.
A coronavirus addendum is a clause that your real estate agent can add to the purchase agreement; the addendum extends these deadlines and also pushes out the closing date by as long as 30 days. If you cannot close the home sale within that extra 30 days, then you will have to negotiate and sign a new purchase agreement with the buyer.