Are you planning on buying or selling a house right now? This global pandemic has affected all of our lives, and real estate is no exception. As a licensed Realtor in Florida, I have seen the changes first hand and have created this guide to help you through your home purchase or sale during this time!
Whilst states are starting to open up, I think it will take some time for things to completely go back to “normal”. In some cases, I believe that some of the changes will be permanent. The real estate industry has been disrupted and we will continue to see more virtual tours and changes that will make things easier for the buyers and sellers.
While some of you may have put your purchase or sale “on hold”, those of you that are buying or selling your house need to know what to expect during this time. Don’t let these changes scare you – they’re actually making the process more streamlined and easier for everyone!
Related Content:
- 8 Steps First Time Home Buyers Should Take
- How To Actually Increase your Home Value
- Pros and Cons Of Selling a Home Without A Realtor
Why Is Real Estate Essential?
In Florida, and numerous other states, real estate was deemed an essential service so we are still allowed to help people buy and sell their homes. Why were we allowed to continue business whilst others had to shut down? It’s quite simple really, people will always need shelter.
Some of the sellers you might see are selling because they’re getting divorced, or maybe they lost their jobs and need to downsize to afford their lifestyles. Some buyers need to buy a home because their lease is up and they can’t afford the high rents around them. Or maybe their job hasn’t been affected and they are just ready for homeownership.
No matter the reason, people need a place they can call home and thus real estate must continue. But, it has changed quickly and drastically compared to how it was just a few months ago.
What You Need To Do If You Are Buying A House In This Pandemic
Are you planning on buying a house in the next few months? The real estate process has changed and you need to be aware and adjust accordingly!
- Don’t skip the pre-approval step – sellers and agents are becoming more weary of allowing showings to buyers who haven’t been pre-approved by a mortgage lender. Everyone is wanting to limit their exposure, and preserve their time by requiring buyers to get a thorough pre-approval first.
Before this pandemic, I was one of the Realtors who would show a few homes to buyers who hadn’t gone to a lender yet, just to get to know them and ease them into the process. I have since become much more strict about ensuring they’re pre-approved. This simplifies everything for all parties involved.
What you need to do: Get all of your ducks in a row so you can get pre-approved quickly! Take these 8 steps to ensure you’re as prepared as you can be before you start the process! - Get your mask & gloves ready – if you’ve booked a showing with me, you’ll expect to see me equipped with a mask and gloves! Please don’t be offended if I try to stay further away from you than normal- we’re all trying to stay healthy during this time!
What you need to do: Get your hands on a mask and some gloves! If you can’t find one, you can make your own mask and use winter gloves instead! If it’s an occupied home, make sure you’re doing your best not to touch anything out of respect for the homeowners and to decrease your risk as well! - Prepare for stricter mortgage guidelines– many banks have raised their credit score and downpayment requirements. Due to the numerous layoffs and furloughs, most lenders are also requiring a more stringent employee verification process where they verify employment multiple times throughout the process.
What you need to do: Shop around! A lot of lenders are having their own, more restrictive guidelines so make sure you speak to multiple mortgage providers! Typically a local mortgage lender or credit union will be more lenient than a bigger bank.
- Anticipate delays – appraisals have had a longer turn-around, so don’t be surprised if your closing takes longer than 30 days.
What you need to do: Expect delays in the process and wait to schedule movers until you have the appraisal back!
- Be ready to compete with other buyers- Real estate is local, and in many places, sellers have taken their homes off the market to protect themselves against COVID-19. This makes finding a home for a buyer more difficult since there is limited inventory.
What you need to do: Now is not the time to “low-ball” on a home. If there are multiple offers, make sure you’re submitting a competitive offer. I will be publishing an article about this in the future, so stay tuned! - Research numerous movers- Make sure to do your research to see what moving truck companies are currently operating and if they need earlier notice than usual.
What you need to do: If you need to rent your own truck, don’t worry! I did it a few months ago and while it was a slightly scarier than driving my sedan, I survived! Here are some great tips on how to find a moving truck, and other FAQ about renting your own!. If you have some larger furniture items you don’t want to take with you, you can donate them to charity (these will pick it up for free! - Do more driveby’s – Before the pandemic, you were able to visit open houses on weekends and pick out your favorites without having to reach out to a Realtor. Now, most open houses are not allowed by the local real estate boards which can make it harder for you to get a feel for homes.
What you need to do: Watch the virtual tours and drive by a neighborhood to get an understanding of the area! If you decide it’s a home you’re interested in – reach out to a Realtor to schedule a showing (once you’re pre-approved of course!). Pro Tip: If you schedule a showing through websites like Zillow or Realtor.com, you’re not necessarily going to reach the listing agent, but a local buyers agent instead! Here are some other ways you can find a Realtor during this time. - Prepare for a mobile closing- you most likely will be having the closing in your car with a mobile notary! Most title companies and law offices have closed to customers and transitioned to mobile notaries who will meet you where it is most convenient.
What you need to do: Pick a spot that isn’t loud or busy to do your signing! Most people tend to do it outside of their future home!
What Sellers Need To Do To Sell Their Home During This Pandemic
If you need to sell your house during this time, you need to focus on making your property as attractive virtually as possible! Here are 10 tips to sell your home during this pandemic.
- Hire a professional photographer – this is more important now more than ever! If the photos aren’t attractive, most buyers will move onto another listing before even giving it a chance. First impressions count.
What you need to do: Hire a professional photographer who knows how to highlight your property in the right ways. - Invest in a videographer – Virtual tours are becoming more common now, so investing in a professional videographer to film a tour can help your property sell faster.
What you need to do: Invest in a professional videographer to film a video walk through of your home.
- Stage your home (physically or virtually)- Staging a home can increase your sales price by 5%. Staging can also help a buyer gain a better understanding of the space.
What you need to do: Find a professional stager to stage your home, or you can virtually stage it with a software for cheaper! - Focus on curb appeal– many buyers will now drive by a home before calling a real estate agent! If your home doesn’t appeal to them they might never even bother scheduling a showing!
What you need to do: Plant some flowering bushes and freshen up the paint on your home! Here are some other great tips on improving curb appeal. - Host virtual open houses- since most open houses are not allowed right now, you can garner traffic with a virtual open house where your agent does a live video walkthrough of your listing!
What you need to do: Help your listing agent by sharing the event page with your social media following. - Promote on social media- since most of us are at home these days, we are frequenting social media more than ever! Make sure you and your listing agent are promoting your home on all of the social media channels.
What you need to do: Post the professional photos and videos to your social media! - Vet your offers- Since many people are furloughed right now, it is very important to interview the lender and buyers agent of the offer that’s presented.
What you need to do: Have your listing agent meticulously vet the offers and interview the buyer’s lender to ensure they’re properly pre-approved and their employment has been verified. - Limit showings to pre-approved buyers- This is more of a tip for you if your home will be occupied during the sale. To limit your risk of exposure to COVID-19 you can ask for serious buyers to view the home only.
What you need to do: Have your listing agent request a pre-approval before approving showings. - Hand sanitizer– keeping your home clean is of the utmost importance during these days!
What you need to do: keep a bottle of hand sanitizer by the door with a note to the buyers to use it upon entering and exiting the home!
- Prepare for a remote closing- you most likely will be having the closing in your car with a mobile notary! Most title companies and law offices have closed to customers and transitioned to mobile notaries who will meet you where it is most convenient.
What you need to do: Pick a convenient spot that isn’t loud or busy to do your signing! Most people tend to do it outside of their future home!