Coronavirus pandemic has disrupted all of our lives and forced us to change plans. However, as sadly it seems like the current state of the world is here to stay for a while, can we continue with our lives? Should you buy your first home during Covid-19?
If you are amongst people who had to postpone their important dates because of the ongoing pandemic, don’t worry. You’re far from being the only one. Most people who have considered homeownership are fearing making this step in the current situation. Is it even smart to buy your first home during Covid-19, or should you wait for a few years? Let’s assess the situation.
Has Covid-19 Impacted Real Estate Industry?
Despite the overall negative predictions, the real estate industry has so far remained intact. The number sales did go down, but it is still possible to sell your house without too many problems. However, the prices have remained fairly steady.
The biggest change came in the way houses are being shown. As traditional open houses aren’t recommended, everything is slowly but surely moving towards digital interface. Virtual tours are becoming more and more popular.
Still, the unemployment remains the biggest problem when it comes to buying and selling houses in this moment. The biggest determining factor should be whether or not you have a job and a steady income. Suppose everything is ideal on this field – should you buy your first home at this moment?
Pros of Buying Now
There are several pros to buying now compared to waiting for the pandemic to pass. The first one is obvious if you look at the numbers. The interest rates have hit historical lows, which means you can get away with a low mortgage. As soon as the pandemic goes away, the rates will likely go up, which means hesitating isn’t a good option.
Also, there aren’t many homebuyers out there. If you’re lucky to be among the few looking to buy houses in your area, you will probably be able to negotiate with the seller for a lower price.
Not just that, but looking for houses has never been easier. As most people are now selling online, you no longer have to take long drives to the home that you’re interested in. Everything is available through just a few clicks on the computer or the phone. In most states, now you can even get preapproved for a mortgage without leaving your house! Keep in mind that getting preapproved is an important factor if you want to buy your first home now. This will show the seller how serious you are, and it will make you look better compared to the competition.
Cons of Buying Now
Of course, not a single situation is perfect, and this is one of them.
As the unemployment rates are rising, getting approved for a mortgage has become more difficult. There can be additional steps and requirements that haven’t been there before. Also, determining your ability to remain on your current work position will be met with higher standards and criteria.
Also, even though the number of buyers has decreased, so has the number of sellers. If you’ve set your eyes on an extremely attractive house, chances are many people will desire it, as well. Higher competition means higher prices, and this is never good for buyers. Not just that, but most houses currently on the market are leftovers that have already been listed for sale before the current situation. Chances are they aren’t in the best condition, or they are rather unique, which might not be your cup of tea.
Not to mention that many homesellers aren’t willing to allow you to enter their home for the viewing until the deal is made. Even though virtual tours are very detailed in the latest years, they are far from perfect, and you might want to have a better look at the property yourself. If you plan to buy your first home now, you probably want to see it before you sign any papers for it.
Also, the entire homeselling and buying process takes much longer now, as there are several precaution measures that have to be taken, such as limited number of people during homeviewings and document signings.
Should You Buy Your First Home Now?
The final verdict isn’t easy to make. Looking at the current state of the housing market, if you have a stable job and income that you are certain you’ll keep for the following years, then buying a house during Covid-19 pandemic isn’t such a risk. The interest rates are low, and you might even get a fine discount on the house if you are the only buyer.
However, if you fear unemployment, perhaps it’s better to wait a little while. Even if you manage to get a low mortgage, foreclosure might still be a realistic result if you lose your source of income.
What if You Want to Sell Your Home?
Selling a home during Coronavirus pandemic is very much possible – however, if you list your house on MLS the chances of your house not selling have increased. If you urgently need to get rid of your property, the best option would be to sell to a direct buyer, such as Sparks Property Investors LLC. Not only will be able to close the sale quickly, but we’ll also pay in cash and make the sale even easier by buying as-is. There is no more need to live in fear, as we are here to do our best to help you out. Avoid the lengthy process of working with a real estate agent by selling directly to a professional buyer.