The coronavirus has impacted Americans’ lives in every way. Those who used to work in an office setting probably work from home now. Those who have planned to travel prior to the pandemic, have probably moved it to a later date and now, they must’ve saved more funds for that plan.
But, if you have lingered on the thought of selling or buying a house—well, it has been unclear what should be done under the current health crisis.
The response of the housing market has drastically changed the processes of selling and buying a house. Open houses were canceled and people are left scratching their heads. Whether you have bought many times now or it’s your first time, you must have unlikely faced a situation like this in the past.
You may have already decided to put your plans of buying on hold or have pulled out your house from the market, but if you are in dire need to move, here are the 5 things you should keep in mind:
- Mortgage rates are currently unstable.
Mortgage interest rates are constantly changing these days. The Federal Reserve has already lowered the rate two times this year. This in turn decreased interest rates in credit cards and savings accounts. Inevitably, mortgage rates should be lower too, right?
Long-term loans like 15-year and 30-year mortgages may not be directly influenced by the Fed’s changes in rates, but it still responds accordingly. While short-term loans are directly affected by the actions Fed takes.
Mortgage rates directly affect the demand in the market. When mortgages are low, the demand tends to go high, like in March when refinancing applications went very high because of the sudden drop in mortgage rates.
Low mortgage rates generally indicate that the economy is struggling. But during this unprecedented situation, mortgage rates are constantly changing caused by high market volatility. It is recommended that consumers remain flexible as the rates change.
- Start the process as quickly as you can.
Home buying process takes time. It is best that you talk to your lender and get started immediately with the process. The surge in refinancing applications is not the only reason why the process is slow. Many employees are now working from home which contributes to slower response.
It’s not just the lending that is slowing down, appraisals too, since the process involves the appraiser to physically visit the property and quarantine is preventing them from going out and viewing homes.
If you are aiming to buy a house and move on a later date, you might want to get started contacting your real estate broker and lender now.
- Utilize technology—video and virtual tours.
With the cancellation of open houses and home viewings, many companies are resorting to technology for help to ease the process.
Now, you can do a video call with an agent as he shows you around the house remotely—you can check the parts of the house, the kitchen, bedrooms, toilets, and others.
Other companies also offer 3-D models that you can tour as if you are in a game.
These technologies have been around for quite a few years now, but with the social-distancing, utilization of these virtual helps is becoming a trend. It provides convenience to people checking out homes in the market while still in the comforts of their homes.
- Go for a real estate broker who takes this current health crisis seriously.
During this COVID-19 global pandemic when things and practices have drastically changed for the time being, it’s better to work with a broker who understands the situation, takes it seriously, and goes beyond his duties to serve you in these unique times that require such.
While many parts of the process require personal interaction, it is best to find a real estate broker who makes things easier for you, like maybe closing a home remotely if it’s possible.
- Choose a direct investor.
On the other hand, if you have been planning to sell your home and were itching to move and need fast cash, the best thing you can do is sell your property to a direct investor. They are likewise called the iBuyers. What they do is they offer free consultation and provide you a no-obligation offer in just minutes!
Should you arrive in agreement with their fair written offer, they can close as fast as 7 days or you can choose your close date and they can work around your schedule. Contact one now at Candid Property Solutions – a reputable “we buy houses Los Angeles” company. They helped many people all throughout the years. Who knows, they can help you, too.