Young Asian couple receiving new apartment or room key from realtor or real estate sales agent after ... [+]
There’s no denying that the spread of coronavirus has had a profound impact on the real estate industry. In addition, it has left many would-be buyers with tons of questions, including whether or not now is a good time to buy. To try and put some of those questions to rest, I asked real estate agents to share the one thing that they wanted to tell their buyer clients. Here’s what they had to say:
This is not 2008 all over again
“In 2008, we had a completely different scenario. When the market turned, there were tons of forced-sellers because homes were being foreclosed upon left and right. There were also almost no buyers. The banks were trying to survive. They weren't able to issue new mortgages, so even if people wanted to buy, they couldn't.
Now, we have a much lower supply. There are very few forced-sellers. Even if someone is laid off, forbearance is widely available right now, so foreclosures are not spiking. There are also very few listings on the market right now. A lot of sellers pulled their listings once the virus started because they don't want people coming through their homes.
Putting that all together, there just isn't a big imbalance of supply and demand. In fact, you could paint a picture where buyers rush back into the market once it reopens only to find many fewer choices and prices are pushed up.”
James McGrath, Co-Founder of Yoreevo in New York, NY
It’s okay to wait to buy your home
“It’s okay to change your mind and not buy a home during a pandemic and uncertain times. Buying a home is a huge decision and should not be taken lightly. Take your time and buy a home when you are ready.
Don’t get caught up in the frenzy of the market. Buy a home because doing so aligns with your goals, you are financially prepared to buy and maintain the home, it fits your lifestyle, and you are mentally ready to be a home owner.”
Paul Welden, a Real Estate Agent with HomeSmart in Phoenix, AZ
If you do decide to buy, choosing the right real estate agent is more important than ever
“Partnering with the right real estate agent is always an important decision, but in the current climate, it is imperative. Right now, it is critical to choose an agent that is knowledgeable and also tech savvy.
Many real estate transactions are going virtual, so without an agent who can FaceTime, video conference, and digitally interact, buyers will miss out on opportunities that other, more tech-friendly, will capitalize on quickly. “
Patrick A. Pearce,Jr., a REALTOR with John Moffitt & Associates in Kansas City
You’ll need to make sure your financials are in order too
“Interest rates were pretty volatile at the outset of the pandemic and still may be. It's important to stay in close contact with your lender to lock the rate at the right time. Also, get all documents to them as soon as possible so that there are no delays in closing on time and securing your interest rate.”
Nabeela Kausar, a Real Estate Agent with Realty One Group in Marlboro, New Jersey
Don’t neglect to do your inspections
“It is important that buyer clients do not skip inspections because of the Coronavirus and that the buyer has a reserve to address unforeseen issues.
As more showings are being conducted via video conference, the odds of a problem being missed by the buyer is even greater. Additionally, on this market, it can be more challenging to obtain inspections because some inspectors are not working or may be reluctant to enter homes.
However, even when a seller has carefully cared for a home, there are almost always a few issues with the home. If the buyer is not aware of these issues, and does not properly inspect the home, he or she is going to be on the hook for paying for repairs.“
Rick Davis, a Real Estate Broker and Attorney with Levy Craig Law Firm in Kansas City, Missouri
