The coronavirus pandemic has derailed buying and selling activities in the property market. Albeit fewer homes have been listed for sale, the industry is gradually recovering. Prospective buyers can make purchases and sellers can list their properties for sale while adhering to prevention measures for safe transactions.

When this year started, the Real Estate Market was showing prospects of steady growth until the novel coronavirus took toll of the industry in March. With strict restrictions to limit the spread of Covid-19 put in place, householders took to a cautious approach, trying not to make purchases or listing their properties for sale.  There have been reports showing the volume of mortgage applications falling up to 24%, despite the rock-bottom mortgage rates.

Nonetheless, that's not to say that all hopes of buying and selling your home are entirely shuttered. Those who were on the verge of closing home deals, or want to purchase properties they can still do so.

Here are helpful tips for selling and buying a property in an age when social distancing, wearing facemasks, and the use of sanitizers are a norm.

Do Your Homework

Despite the slump in the number of newly-listed homes, there are still excellent options in property listings. This is a time to research the market and find your preferred property in a community you like. Don't limit yourself to a few selected areas. Extend your search to other surrounding regions that might have homes with excellent value for money, amenities, and facilities.

As you spend more time indoors, it's an opportunity to assess your current home and determine the level of functionality and comfort it offers you. That helps in knowing your priorities when searching and, consequently buying a home.

Speak to an Agent

Most real estate agents have communication protocols during the coronavirus crisis. They currently leverage technological tools to communicate with property buyers, offer virtual tours; negotiate and even finalize deals without having to meet them in person.

If you've inspected a listed property and are willing to close the deal, make a call to your agent for assistance on how to proceed. Agents can organize for an interactive virtual tour where you can ask questions regarding the design, condition of the property, and chattels, etc.

If selling a home is your decision, you can resort to online appraisals. Housing agents understand the market well and will be glad to offer estimates of the property's value and how it may fair in the property market.

Safe In-Person Meetings

Once you've staged your home, you want to meet the prospective buyer(s) in-person to show them the property. Instead of driving property hunters in your car, let them drive themselves to the property, so you can both rendezvous with them on site.

If you're showing an open house, bring along a hand sanitizer or place a sanitizing agent at the door to minimize the risk of contraction. Alternatively, you can also perform pre-screening procedures on the potential buyer to track their contacts if they've recently travelled.

Prepare the Home

During this time when entertainment, sports, and other social areas are closed, take advantage of this while to prep your home for the market. Preparation may entail anything from mowing the lawn, exterior repairs, tidying the gutters, and decluttering the interior.

Start with a DIY approach to reduce the workload before calling the professionals for help. Do an online home improvement search to note the additional décor that can enhance the visual appeal of the home. Once the restriction measures are eased, you can embark on implementing the changes.

Property owners refinance their homes and commercial properties all the time. As your credit improves and you have built more equity into the property, it may make fiscal sense to refinance when interest rates dip low; the move can save you hundreds of dollars every year.

On the other hand, sometimes refinancing a mortgage may not the right thing to do. When you speak to a mortgage professional or real estate agent, we will review what you need to know in order to make informed decisions about how to best proceed with a refinancing plan.

What Are the Penalties?

Possible penalties are a risk for refinancing a home or commercial property. In mortgage agreements, there may be clauses that allow lenders to assess a fee for refinancing and/or paying down an existing mortgage with a line of home equity credit. In certain situations, a mortgage may contain a provision that allows the lender to assess a penalty fee when the homeowner pays more than 20% on the outstanding balance of the loan. If penalties and fees like these wind up amounting to thousands of dollars, it might not be worth it to refinance the property.

New Closing Costs

Then, of course, there are typically new closing costs that must be paid for a mortgage refinance deal. These costs are often difficult to avoid. As essentially a new mortgage, there are the usual examinations, fees, and recording costs that have to be accounted for. Sometimes these fees can be paid in cash or they're simply added to the outstanding balance. However, it's important to accurately gauge the amount in order to weigh it against the cost savings of the refinanced mortgage. As property owners, you would have to ask yourselves if it's worth it.

Moreover, borrowers have to be careful of 'no closing cost' refinance deals. Too often, these fees wind up somewhere. For instance, the interest rates associated with these loans maybe a quarter or even half a percent higher. That translates into more money owed regardless of whether it's dubbed a closing cost or not.

Other Costs

Take into consideration possible fees before you refinance, like costs related to paying an attorney and relocation anticipation penalties for homeowners who refinance and plan to move in three to five years. By taking all the costs into account and weighing them against the potential savings, you can make a smart fiscal decision about whether to sign your mortgage refinance deal or not.

While refinancing makes sense in many situations, people need to enter into these deals knowing all the monetary considerations beforehand. Mortgage Professionals can help make great borrowing decisions by informing you of the refinancing risks.

We are facing a challenging time as we work together to combat COVID-19 in our country and even our own neighborhoods. With so much uncertainty in the air, is it a good time to think about buying a house? Especially as a First-Time Home Buyer?

The housing market can be highly seasonal, sales are typically low through the start of the year and then heats up in the spring and through the summer, like the weather. Unfortunately, the COVID-19 pandemic has changed those trends because of lockdowns and social distancing measures. The number of homes sold has fallen but prices appear to be holding steady for now.

Are there any benefits to becoming a First-Time Buyer right now?

Low-Interest Rates:

Interest rates have been dropping to an all-time low as a response to the COVID-19 pandemic. Real estate is one of the largest economic sectors; lowering the interest rate is an attempt to entice more people to purchase a home.

There are also various government incentives that may help first-time buyers achieve their dream of owning a home.

For more information contact me today!

Less Competition:

It’s a Buyer’s Market! The slowed activity in the real estate market may help first-time homebuyers in getting into their dream home at a lower price point. This is because there are fewer buyers shopping for new homes and sellers that want to sell quickly may be more likely to negotiate and lower the purchase price

Advice for First-Time Home Buyers:

Do not rush into homeownership if you are not ready. When buying a property, regardless if it is as a first-time homebuyer or not, it should be a decision made based on your life stage and financial situation, not the market. There are costs that you need to be prepared for such as mortgage payments, minimum down payment, closing costs, etc... so you need to ensure you have a secure source of income. If your employment and income are unstable, you may have trouble getting a mortgage, let alone a good mortgage rate.

In conclusion…

Is it a Good Time to Become a First-Time Home Buyer? Ultimately, that choice is up to you and your financial situation. There are pros and cons to purchasing a home at this time and there are many important factors that may affect your answer.

Feel free to reach out, I am more than happy to answer any questions in detail pertaining to your individual situation. Don’t forget to stay safe and stay healthy!

Buying your first home is a scary and exciting process because it’s a HUGE commitment. It’s easy to get swept up in the excitement of home shopping and mistakes can leave you with buyer’s remorse later.

Here are some First-Time Homebuyer Mistakes you may want to avoid:

1) Looking For a Home Before Applying For a Mortgage.
A common mistake that many first-time buyers make is to start viewing homes before they get in front of a mortgage professional. You may end up behind the ball if you find a home that you love and end up losing the property by not being pre-approved for a mortgage.

2) Draining Your Savings
It may not be a good idea to spend all or most of your savings on the down payment and closing costs, especially with the current events. It is a good idea to have three to six months of living expenses in an emergency fund no matter if you plan to buy a house or not.

3) Buying More House Than You Can Afford
It is easy to fall in love with a home that may stretch your budget but overextending yourself is never a good idea. Buying a house that exceeds your budget may put you at a riskier position and less likely to have wiggle room in your monthly budget for other expenses.

4) Miscalculating the Hidden Costs of Homeownership
If you are shocked by seeing your new monthly mortgage payment, wait until you add up the other costs of owning a home. As a homeowner, you will need to pay for property taxes, mortgage insurance, homeowners insurance, utilities, etc. That brings us back to the points listed above, you may need to keep your savings intact.

5) Paying More Attention to the House Than the Neighborhood
It is understandable that you would like a home that meets your needs and checks off items on your wish list. But it is easy to get lost in the home’s aesthetics instead of focusing on things that may be more important. It could be difficult to live in a house you love that is in a neighborhood that you dislike.