Buying or selling a home during a pandemic?

 Here’s what you need to know.

While the COVID-19 pandemic has delayed real estate transactions for some people, housing markets in many areas of the country (especially the Portland Metro area) are showing a strength and resiliency unimaged at this time one year ago. As we continue this path of uncertainty, it is critical to understand the pandemic’s impact on real estate, from simply touring a home to the ability to close transactions. 

Whether you are new to homeownership or have been a homeowner for years, this is an unprecedented time. I want to ensure that during this pandemic, I can provide essential tips for buyers and sellers, so everyone has a safe and hassle-free experience.

WHAT BUYERS NEED TO KNOW

Home tours are a little different – Where in-person showings are still offered, potential buyers should expect quicker tours and will be asked to take extra precautions, such as removing shoes, using hand sanitizer and refraining from touching items in the home.
Many sellers have offered virtual tours of their homes through pre-recorded videos or live video streams. In fact, three in five REALTORS® said they are guiding buyers through virtual home tours.*

Interest rates are low – While new social distancing measures change how buyers view potential homes, interest rates are near all-time lows and home prices are generally holding steady. 

As more people file for unemployment, however, mortgage lenders may tighten lending standards, subsequently driving up rates – or delayed demand could push rates down further. Potential buyers can prepare for homeownership by understanding their budget, building a good credit history, and it is imperative to get prequalified for a mortgage before beginning the search.

Don’t expect a discount – While some home prices are holding steady, majority are the same or higher from one year ago and bidding wars are not uncommon.

Expect delays – If you are terminating a lease, be prepared to leave some wiggle room, even an extra month or two, between moving out of a rental and into a new home in case of an unexpected delay. Hiring moving crews may prove challenging, so buyers should give movers as much notice as possible ahead of their scheduled move.

WHAT SELLERS NEED TO KNOW

Showing and marketing homes during a time of social distancing may seem difficult, but a new wave of tech tools is helping streamline the remote transaction process, as buyers continue home searches online.

Use tech tools to help market and show your home – While in-person showings may be inadvisable, and even prohibited in some states, many digital tools are available to help you continue marketing and showing your home. A real estate agent can help coordinate 3D interactive property scans, virtual tours (either pre-recorded or live), on-demand open houses, and virtual staging to showcase your property. If sellers receive an offer on their home, their agent has the ability to present it to them virtually as well.
 

Take steps to protect yourself – “Sight unseen” purchases are not a new phenomenon, but this pandemic has certainly increased their prevalence. Sellers may want to include language in the purchase agreement that ensures buyers acknowledge that they are responsible for personal verification, walkthroughs, and professional inspections to confirm that the property meets their needs.

Buyers are still searching – Just because they’re not touring homes in-person doesn’t mean buyers aren’t continuing their search. As a result, nearly three in four REALTORS® say sellers have not lowered prices to attract buyers during the pandemic. As potential buyers increasingly browse homes online, having attractive and accurate photos and videos is even more important. Sellers may want to consider using this extra time at home to make updates around their home and take fresh pictures of those improvements.

Final Bit of Advice

As the situation continues to evolve, I encourage buyers and sellers to follow CDC guidelines to protect their health and safety.