Real Estate News

What to Know About Buying or Selling A Home During the Pandemic

Written By: Chad Jampedro
Sunday, August 9, 2020

This is because many people are looking for more space. Many are choosing to move from urban areas to suburban and rural locations. Due to changes in their financial circumstances, others are looking to sell their homes or even downsize. Furthermore, with the growing number of people who are working remotely, prospective homebuyers are able to widen their search a little bit. The pandemic has changed thoughts around how people can work.

Regardless of whether someone is looking to buy or sell a home, it is critical to be aware of how the market has changed. This will allow everyone to find the best option for their specific situation. Heres what anyone considering buying or selling during the pandemic should keep in mind.

Know the Local Real Estate Market

One of the most important things that both buyers and sellers have to keep in mind is that local markets can vary from place to place. In many parts of the country, the inventory is tight. This means that those who are looking to sell a home might receive a massive influx of offers in a short period of time. Consider the offers carefully, look for buyers who are pre-approved, and dont be afraid to wait for the best offer possible.

On the other hand, those looking to buy a home might need to widen their search radius a little bit. Even reaching out an extra five miles can provide dozens of additional prospects. Finally, buyers should also not shy away from building their own home. This allows prospective homeowners to customize the house to meet their exact needs. The builder market is growing quickly and this opens the door to a number of new opportunities.

The Loan Market Has Changed

Right now, loans are taking a bit longer than they usually do. This is because some parts of the home loan market are not operating at full capacity. The pandemic has impacted them as well, causing a backlog in their ability to process home loans. Furthermore, traditional lenders such as banks and credit unions, are busy trying to process SBA loans under the Payroll Protection Program PPP, which has placed home loans lower on the priority list right now.

Regardless, buyers and sellers need to be patient. Interest rates are still at historic lows right now. Those who are looking to buy a home that they plan to live in for the next few decades could end up saving hundreds of thousands of dollars over the life of the loan. When new home loans are competing against those looking to refinance, it is easy to see how this can place a drain on the bandwidth and resources of loan advisors.

Questions About Employment Are Common

Finally, buyers should anticipate a lot of questions about the status of their employment. While tens of millions of people have filed for unemployment since the pandemic started, lenders are just as strict as ever when it comes to making sure their borrowers have the capacity to pay back their loans.

Therefore, expect the loan officer to ask whether the applicants employment is stable. Buyers might even be asked to submit pay stubs every two weeks instead of the traditional six weeks. Buyers must be prepared to verify their employment.

Final Word: The Real Estate Market Is Strong

The COVID-19 pandemic has forever changed how people look at the process of buying and selling homes. Right now, everyone needs to expect the unexpected. The good news is that for both buyers and sellers, there are still significant opportunities.

About Chad Jampedro:

Chad Jampedro is an established leader in the mortgage industry with more than 20 years of lending experience. As president of bothnbsp;GSF Mortgagenbsp;andnbsp;GO Mortgage, Jampedro oversees and directs the companies activities throughout the United States. Chad has managed and been a mentor to thousands of sales professionals during his mortgage career, and has successfully developed and sold more than 20 companies.

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