Ever since people around the world have started working from home to stay safe, a few things have changed in the area of real estate and buying a home. While some things have slowed down, like mortgage approvals, other things have sped up significantly, namely mortgage rates are lower and needs are changing which has led to some very intense competition in buying a home. This is why timing is key.
Start Searching Online
Things have changed rapidly especially since the pandemic. There are more and more people searching online for homes as opposed to going to a home personally for a tour. These factors are reducing the number of homes the buyers are visiting. 3D images and video tours have consistently proved easier in selling, and buyers are finding homes faster. Many of them come from a variety of different cities and countries to purchase homes that they have found online.
Find a Real Estate Agent
Finding and keeping the right real estate agent is going to be an essential part of getting the property you want at the right price. In these competitive times, an agent will be able to direct you through the right processes and tell you what the best scenarios will be for you during your search. When you finally find the right house, there could be a bidding war. A real estate agent will coach you on what to do next to either win the war or move on to the next home on your list. Never underestimate the power of an agent as opposed to going it alone.
Make Compromises
Buying a home is full of compromise. Identify what can you afford versus what you want. Keep lenders’ fees, down payments, property taxes, and in some cases HOA fees in mind. Higher deposits and clauses that escalate the sale are very popular right now. There are even buyers that are waiving appraisals and inspection contingencies just to get the right house and win bidding wars. Some buyers are even starting to allow the seller to keep living in the house a while after closing. Get acquainted with your local housing market. In some markets, different submarkets will behave differently. Some neighborhoods can be popular while others nearby may not attract as many buyers.
Be Patient
Closings have stepped up from a few weeks to almost over a month if not more. Lenders are becoming busier processing loan applications because of these very low mortgage interest rates and higher demand for homes than in the past. You can assume your closing may or may not be seamless, and there are other factors to consider such as lower appraisals and home inspection problems.
All in all, with the pandemic regulations and the low mortgage rates, it can prove to be not only a time-consuming but time-sensitive job to buy a house right now. Things are becoming more streamlined so look for it to ease up – but not soon. Keep up with the trends and what you need versus want and you’re going to be ahead of the game this year and beyond.
