Buying and selling homes during Covid-19
The Coronavirus and COVID-19 situations have changed the real estate industry and buying and selling homes during the pandemic. With many businesses shutting down, a decrease in income, and with people staying home in fear of contracting the virus, the real estate market had undergone some serious changes. Many of the San Fernando Valley cities such as Calabasas, Hidden Hills, West Hills, Agoura Hills, and Woodland Hills are taking serious precautions with people isolating in their homes and not wanting to host strangers in their homes, even at the expense of not being able to sell their home.
At first, it was close to impossible to set up an appointment to see a home, especially if the owners resided in the home. All open house events had to be canceled and postponed indefinitely. Selling a home started requiring more resources and patience on both the seller and the buyer’s ends. Several factors affected the whole process.
Social distancing. During the Covid-19 pandemic and the requirement to keep 6 feet apart, it became harder to perform home showings and face-to-face interactions. The buyers and their realtors started relying more on virtual tours, photos, and had to find new ways to perform appraisals and closings. Everything had to be done with more caution and took extra time.
Buying a home during Covid-19. With all the showing restrictions and many people not wanting to interact with strangers or leave their home, there is less competition to buy a home and therefore less of a chance of getting into a bidding war with another party. This brings on an opportunity to negotiate better terms and prices. In addition, the mortgage rates are at the record lows, so not only you can get a home for a better price, but you can get a good and affordable mortgage payment as well. Nevertheless, COVID-19 situation caused many people to lose their jobs, and that did create a shortage of potential buyers. Also, many people are not comfortable just buying a home based on the viewing of a virtual tour or photos.
Selling a home during Covid-19. Many realtors agree that there is an advantage to the active sellers because many other sellers decided to put the home sale on hold. Therefore, current homes for sale are getting more exposure. Also, with saving time on the commute and spending more time at home, people are more likely to spend more time looking through virtual listings. However, during the pandemic, it could take longer to sell your home because people might be reluctant to make big investments and may want to hold on to their money during uncertain times, so that will be fewer active buyers on the market.
Can you still get a mortgage during the Covid-19 pandemic? Yes, you can still get a mortgage, however, the conditions and requirements had become more strict because the lenders fear that the home buyers’ employment might be in jeopardy. You can find out more about the process at your local lending company