Are you considering buying or selling a house either during the COVID-19 pandemic or soon after its aftermath? If so, there are a few things that you should know if you’d like your real estate transaction to be a success during this time. Buying and Selling houses is no longer what it used to be, especially with all the newly imposed laws and restrictions that have been put in place in light of the global pandemic. As such, it’s important to make sure that you’re following the rule of law to the letter by not only adhering to the specific laws within your state regarding real estate deals but by practicing COVID awareness and social distancing measures in all your home buying/selling interactions as well. In this blog, we are going to talk about everything you’ll need to know when buying or selling your house during the Coronavirus pandemic.
Everything You Need to Know About Real Estate Transactions During the COVID-19 Pandemic
Here is our overview of real estate transactions during the COVID-19 Pandemic
COVID-19 has impacted the world in so many drastic ways. From sealing off borders to initiating country-wide quarantine restrictions, whole economies have taken massive hits due to this worldwide pandemic. Businesses have shut down, people have lost jobs and many families have lost their homes and livelihoods during the long arduous months of 2020 where most of the world was locked at home. And even now as life begins to normalize, most sectors throughout the country (from agricultural to finance) are no longer what they used to be. This is especially true for the real estate industry.
The Real estate industry has taken a massive hit due to the impact of the COVID-19 pandemic throughout the country. Due to lockdown restrictions, and many other laws that have been put in place to make provisions for the pandemic and prevent its spread, real estate transactions of any kind in some places have been put to a grinding halt. And even as the dust has begun to settle in 2021, home buyers and sellers are still finding that the aftermath of the pandemic has continued to make things a little more difficult. To say that these are uncertain times is an understatement. As such, if you’re hesitant when considering entering the real estate market during this COVID-19 pandemic period, it would be understandable. We are living through a unique event in human history.
In this blog, we are going to explore the subject of the COVID-19 Pandemic in relation to its impact on the real estate industry in America. We’ll talk about a few key laws and regulations that you should be aware of when buying and selling either during or post-pandemic, as well as what you can do to improve the chances of your real estate transaction being a success during these turbulent times. So let’s get started…
How the COVID-19 Pandemic Has Impacted the Real Estate Industry
Let’s start by diving into how the pandemic has affected the industry, and what to expect when buying or selling a house.
If you’re considering either buying or selling a house during COVID-19, you’ll likely want to know how the pandemic has impacted the real estate industry. Any of these large-scale COVID effects on the real estate market will be likely to impact you in some way, so learning more about them beforehand will help you enter your real estate transaction fully prepared.
Would you like to find out some of the difficulties homeowners are facing when trying to sell their homes during coronavirus? If so, we’ve got you covered. Below, we are going to list a few of the ways that the COVID-19 pandemic has impacted the real estate industry:
1. Fewer Buyers and Even Fewer Sellers
One of the main ways in which the real estate industry has been impacted by the COVID-19 pandemic is the reduced number of buyers and sellers that are on the market. Due to lockdown restrictions, not many people are keen on going out and viewing properties, or on leaving their homes once they’re sold. As such, you’ll find that most people would have cautiously decided to postpone their real estate transaction until after the pandemic fearing exposure to the virus. This has then resulted in significantly fewer buyers entering the market to purchase houses, and even fewer sellers listing their properties. As such, this will likely make it a whole lot more difficult for you if you’ve decided to enter the real estate game at this time, no matter which side you’re on.
2. Rising Market Values
Another way in which the COVID-19 pandemic has hit the real estate market is as a result of its impact on the number of listed properties. The tragic pandemic-induced recession of 2020-2021 has resulted in millions of people losing their jobs. As such, families that may have hoped to list their properties and upgrade have since pulled their homes from the market. In addition to this, the eviction moratorium has protected all those homeowners who’ve been struggling to meet their mortgage payments, so not many people have had to sell in order to avoid foreclosure. This has significantly reduced the number of home sellers available. From this, due to increased demand, real estate prices have gone up remarkably in the last year, which has but many buyers in a tight spot. This is further compounded by the shortages of raw materials that have slowed down new construction.
In short, if you are a buyer at this time, be prepared to make some crazy concessions in the purchase offer to stand out and get your offer accepted.
3. Eviction Moratorium
Next up, we have the eviction moratorium. If you’re a landlord of any kind and are renting out a property to a tenant, you’ll find that evicting them during the COVID-19 period has been banned by law through the eviction moratorium. This law is scheduled to end soon; however, as the moratorium continues, you should be aware that buying or selling a property that has tenants (even if their lease has expired) is not a good idea.
4. Moving Difficulties
And last but not least, one of the biggest issues that you’ll face if you decide to sell your house during the COVID-19 pandemic, or immediately after, is moving difficulties. Due to state-wide lockdown restrictions, leaving one’s house has been made extremely difficult. As such, people who’ve bought/sold houses and are gearing up to move will find that the immense amounts of paperwork that need to be filed with local law enforcement, as well as all the red tape that needs to be crossed to facilitate a move is hard work. But if you’re dead set on moving, you should consult our 5 tips for moving during corona-virus. They’ll be sure to give you all the helpful information you need.
As you can see from the effects above, the COVID-19 Pandemic has made buying and selling houses quite tough. However, if you’d still like to pull the trigger on your real estate transaction, there are a few things that you can do to carry out a successful real estate transaction during the COVID pandemic. Below, we are going to talk about 6 things you should know about buying and selling houses during coronavirus and outline a few tips that will be sure to help you beat the system.
One thing you should know about buying or selling in Brooklyn Center during corona-virus is that no matter which one you are doing, health should always be your top priority. As such, there is often very little movement in the real estate market, during times of pandemic. With COVID specifically, those with the option to delay a move are doing so for at least a few months. If you find yourself with this option, you should also consider moving at a later date.
For people that need to move quickly, however, there is usually a perception that the seller must be under economic or legal pressures, and being forced to sell. This has the potential to drive one’s negotiations towards an overall lower final purchase price. All in all, be sure to time your move perfectly (outside lock-down periods no matter what your specific situation requires) so that both you and your family remain healthy, and give yourself the chance to get the highest possible value you can from your sale.
Due to changes in the economy brought on by the pandemic, credit has been widely affected negatively all over the country. This means that less of the population will meet the standards that are required by most traditional lenders. For this reason, it’s important that you spend time researching alternative financing options when you are either buying or selling in Brooklyn Center during coronavirus.
Another thing you should be aware of when buying or selling during corona-virus is how to keep safe during the process. It’s frightening to think that someone walking through your house during a showing could potentially contaminate you and your family. Talk to your agent before showings about measures you can take to prevent this, such as: stocking up on hand sanitizer, purchasing a thermometer gun to screen buyers before they enter your home, etc. You can prevent unnecessary contamination of common household surfaces during showings by requesting that your agent be the only person who touches any surface. Likewise, you can ask that all present wear protective gear.
4. Empty is Golden
During coronavirus, there is value in the fact that a home has been sitting empty for those who are either buying or selling in Brooklyn Center. Having a quarantine period of at least two weeks alleviates concerns about disinfecting every nook and cranny of a home after a showing if you are a seller, or before moving in if you’re the buyer.
During coronavirus, many sellers are requesting that only their agents show the home. Another way to keep a low total on the number of people who’ve been inside your home is to ask that only two people be allowed per showing. While the buyer’s agents may not often be in favor of this arrangement, special allowances must be made at this time.
Given the technology of today, you’ll also want to be aware of everything possible about your pool of potential buyers or sellers, when buying and selling in Brooklyn Center. For the tech-savvy who want to go it on their own, you’ll want to be certain that you keep within all of the local, state, and federal laws that govern real estate transactions. As always, you’ll need to investigate just who you’re accepting an offer from. Likewise, you’ll need to go into the process with your eyes wide open to the possibility of online scams. Before finalizing anything by signing on the dotted line, you’ll want to meet face to face with the players in your deal and have done your homework carefully enough to ensure that you are actually dealing with the owner of said property.
So there you have it. There is everything you need to know about selling your house during the COVID-19 pandemic.
More Questions? Maybe you’re having trouble paying your mortgage during COVID. Or maybe you’d like to learn more about COVID restrictions on the real estate market. Whatever your query, you should let FastPath Home Buyers help you quickly and safely through this process. Simply reach out to us by calling (612) 351-2384 or filling in the short form below, and we’ll get back to you with all the answers you’re looking for. You won’t have to face any of the headaches or concerns, whether you’re buying or selling in Brooklyn Center during corona-virus.