Real estate agents who’ve been in the business for a long time know what worries buyers when house hunting, but can agents reassure buyers a house post-COVID?
Typically, Spring and Summer tend to be the ideal time to buy or sell real estate. However, thanks to COVID-19, 2020’s prime-time for selling has stalled significantly. According to HomeLight’s Q2 2020 report, 78% of participating real estate agents saw business decline in April. Thankfully, for many agents, business started up again in June.
With that said, buyer’s are still hesitant about diving into the world of real estate. Let’s take a look at some of their concerns.
1. Qualifying for a mortgage
For many people, applying for a mortgage can have you sweating bullets. You might’ve thought you had all of your ducks in a row and there was no doubt you’d be approved. However, since the beginning of the pandemic, 30 million people are unemployed due to no fault of their own.
Lending companies are hesitant about approving applications and as a result, they’ve increased eligibility requirements. Some have increased the minimum acceptable credit score and require a larger down payment. Others have asked for a debt-to-income evaluation and proof of long-term, stable income.
What really worries buyers is if their lender imposes a mortgage overlay (or a new set of rules on top of already discussed guidelines) on them. You can read more about mortgage overlays here.
2. Short supply of houses
Once it was clear that the coronavirus isn’t going away, real estate agents reported that 30% of sellers pulled their houses from the market, due to concerns of contracting the virus. You can’t blame them, of course. With fewer houses on the market, buyers are worried that there won’t be enough houses that meet their budget and requirements.
However, if you’re thinking about listing your home, you might want to do it now while mortgage rates are so low. For those who do qualify for a mortgage, you have a good chance of getting your house sold quicker than normal!
3. Heated bidding wars
Piggybacking on the previous concern, when there’s more buyers than available houses, buyers are worried that they’ll find themselves in a heated bidding war. Sometimes when you find a house that you love, the chances are pretty high that there will be others who have fallen in love with the house too. Plus, for those who absolutely have to move right away, they may feel pressured to make an offer right away before truly thinking it through.
4. Employment uncertainties
Each day we hear of more businesses closing their doors for good, thus leaving countless people unemployed. This alone is enough to strike fear into the heart of buyers. No one wants to begin the house hunting process only to lose their jobs halfway through. Or worse, they lose their jobs right before they are due to close on their dream home. It’s because of these uncertainties buyers are afraid to take that leap.
Buyers need not be afraid – real estate agents can help!
Before the global pandemic gripped the nation by the throat, house hunting was a landmark moment in the lives of Americans. We’ve been told that owning our own piece of the country was a key piece of living the American dream. Yet, as the future of the nation and real estate hangs in the balance, buyers are afraid of dipping their toes in the world of real estate.
The truth of the matter is, nothing is set in stone. Life is always going to throw you a curveball, but that shouldn’t make you put your life on pause. If you’re thinking about buying a house, consult a top-rated real estate agent in your area. They’ll be able to answer your questions and guide you in the right direction.