The global COVID-19 pandemic impacted almost every industry available in the world. Selling a home requires face-to-face interaction; thus, the way real estate agents do business nowadays has been altered significantly. Most house showings have been canceled, funding loans have become trickier, conducting inspections have become more challenging, and even processing documents have created significant delays. Buyers gave up searching for houses, and sellers eventually pulled their properties off the market. However, adjusting to life during this pandemic is necessary and requires rational and wise analysis when it comes to business.
Therefore, if you're trying to grow your real estate business or only looking to buy or sell a property, you don't necessarily have to give up on your efforts. You can still achieve your real estate goals through critical strategies, including staying up to date on what's happening and working with experienced real estate professionals, such as financial advisors, attorneys, agents, and others. It would be best if you start by asking yourself three main questions before deciding how to proceed with your business during any global crisis.
Many sellers choose to withdraw their properties from the market during a crisis to avoid accumulating days without being shown to potential buyers. The "withdrawn" status means that the property is not conducting any showings, but the seller remains engaged with their agent.
There are multiple factors you should consider before withdrawing your property from the market. However, keep in mind that a spike in "withdrawn" properties reduces the supply of houses available, potentially creating increased buyer demand.
COVID-19 took over the world, but some buyers are incentivized or unaffected by the whole pandemic. For example, those who are job relocating or working in essential industries will always be motivated to buy no matter the situation.
Whether or not you should consider buying a home right now depends on your situation. You might want to reassess your financial capabilities post-COVID-19. That means if you lost a lot of money in your business and it's your only source of income, it's not wise to stretch your spendings further by purchasing a property. However, suppose your income is stable, or it has increased significantly. In that case, you can consider buying a home knowing that you'll strike a better deal during the pandemic than any other time.
More sellers are withdrawing their properties from the market. Buyers are starting to feel discouraged, especially if their favorite property is no longer conducting showings. However, even though the seller withdraws their home, it doesn't mean that the seller is not open to negotiations. Most buyers don't have enough information about these "real estate status" changes. Therefore, working with experienced agents is a wise move, especially during a crisis.
Social distancing measures and lockdowns will no doubt impact your real- estate pending transactions. You should be prepared to expect delays from those who lost their jobs or experienced change in their employment status. Those who have no current job will find it difficult to provide employment verification before closing their pending amount. Depending on your location, lenders are reevaluating credit score requirements, loans, and down payments, which may undoubtedly impact pending transactions.
In some cases, buyers had to stop all their pending transactions and switch lenders to move forward. It's also wise to consider negotiating a more extended escrow period to conduct all necessary home inspections that may be somehow complicated with social distancing and lockdowns.
COVID-19 may have majorly impacted the real estate market; however, properties will always be tangible assets, and it will become a more attractive option for investors in the long run. Consider taking this time as an opportunity to learn all about real estate investing. Starting your own business and building wealth is never too late. It takes the right strategy and a wise team.
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