Real Estate During COVID-19
My advice for buyers and sellers
Over the past few weeks, many have asked, “How’s the real estate market? Are you still able to work?”
The answers are, “different.” And, “yes…and no.” It’s certainly not business as usual. In-person activities have ceased. This includes showings, listing appointments, inspections, appraisals, etc. However, we are still finding ways to close the transactions already in the pipeline — most paperwork can be prepared and signed online; appraisers are doing desktop or drive-by appraisals, and some notarizations can now be done remotely. If you decide to buy or sell at this time, we can offer video tours or live Facetime walk throughs in lieu of in-person showings. Listing appointments can be done via Zoom, etc.
But, let’s be honest — we can’t quite replace an in-person visit of your possible future home with a virtual one. Would you be willing to make what could be the largest purchase of your life, if you’ve never actually stepped foot in the home??
Here’s my advice for…
First-time homebuyers: Sit tight. Very few of you are going to have the stomach to make an offer on a home you’ve never actually seen in person. But, now is the time to get prepared. I mean really prepared. Talk to a lender and get pre-approved. Scour the listings. Drive around neighborhoods. Request virtual tours. Ask your agent a million questions about the home buying process. Because when the stay-at-home orders are lifted, there are going to be a whole lot of you back out there.
Seasoned buyers/investors: This could be your chance. If you feel comfortable making an offer based on photos or a virtual tour, you could score a deal while everyone else is waiting to get in and see the place. Just note: even this could be tricky as in-person inspections are currently not allowed, which could result in an indefinitely-long inspection contingency period. Or, to really make your offer attractive, waive the inspection. (Recommended ONLY if you’re fully aware of the risks…make sure you discuss at length with your agent.)
Sellers: If you can wait…wait. As discussed, although we can offer video tours or virtual walk throughs of your property, the majority of buyers are not going to be willing to buy, sight unseen. Even if you do get an offer, it will likely be contingent upon an in-person inspection. Instead, take this time to get your home ready for sale — paint, organize, declutter, enhance curb appeal, rearrange furniture, etc. Have a virtual consultation with your real estate agent to discuss! Then, once the restrictions are lifted, you will be more prepared than ever to list. There will likely be a pent-up demand; price, terms, and selection of buyers will be heavily in your favor!
You don’t have to take my word for it! Hear what Dr. Lawrence Yun, Chief Economist of the National Association of Realtors has to say about the state of the real estate market in his interview with industry leader Brian Buffini in their podcast, This Too Shall Pass.
“Pent-Up Demand for Homes Expected Following Pandemic” Pennsylvania Association of Realtors
