The Coronavirus pandemic has caused different industries to make changes that otherwise would have never occurred. The industries that are lucky enough to have survived have also been forced to make changes. The real estate market has been impacted as the selling and buying of homes are taking longer. The length of the process is already stressful and the fact that many buyers do not want to enter a home physically makes the process tougher. The need for video tours has never been more pronounced than ever before. Below are a few ways that the pandemic has impacted the real estate market. ‘
Buying or Selling a Home Can Take Longer
The purchasing or selling of a home is going to take longer during this time. The need for people to sign certain documents physically can be delayed due to illness or a person not being comfortable breaking personal social distancing rules. The hard truth is that even someone coming to appraise or inspect the home could take a few extra days to do so. There are deadlines after filling out forms that can expire if the process is not managed closely. Asking a real estate agent about key dates is important whether it is a closing date or date you will receive money from your home sale.
There are Steals Available
Selling your home before you enter into the foreclosure process is imperative for many homeowners. There are those that want to sell as quickly as possible. The listings that are great deals are going to be purchased by buyers looking to take advantage of the great deals available. The right real estate agents will show these homes to their clients as soon as they are listed on the MLS. A buyer does have to make the decision whether they want to go see a home or if the video tour will suffice. Visiting a home only if interested in making an offer can reduce the risk of contracting Coronavirus when compared to visiting any homes that even pique your interest.
House Flippers Can Thrive
Setting up a house flipping business plan can result in huge financial gain. The pandemic has led to a variety of contractors dropping prices in order to fill up their schedules. The extra time that flippers have to visit listing and the drop in competition in overall home sales is pronounced. The business plan should incorporate the budget, proposed improvements, and the overall profitability of a home. Certain flippers might see a better return by renting during this trying time and waiting to sell as holding on to a home costs cash.
Certain Homeowners are Using Their Time and Money for Renovations
There is a large number of homeowners that simply are working remotely and have had no impact on their overall income due to the pandemic. Many of these people are saving more money than ever before due to a lack of options to go out to eat or splurge on concert/sports tickets. The money is being used in many cases to improve their current living situations. Renovations and additions with the extra income that have been saved will only drive up the values of homes in certain areas. Renovations being done on one portion of the home can allow for comfortable living in the rest of the home. A complete home overhaul is an option but will likely require the homeowners and their family to stay elsewhere.
The real estate market is constantly in a mode of changing in one aspect or another. After the housing market crashed, this caused lenders to take a much closer look at borrowers than in the past. Technology has made it easier than ever to view homes without visiting them physically. The Coronavirus has made everyone including those in the real estate industry adapt to social distancing rules. The market is not struggling by any means, there are just fewer home sales due to this unforeseen pandemic.