Tips on homebuying in the time of Covid-19

Topics: Real estate, homeownership

Work cited: harrisx&realtor.com, https://www.keepingcurrentmatters.com/2020/08/07/2020-homebuyer-preferences-infographic/

Know the market. According to HarrisX, Covid-19 is either slowing down or stopping home buying. 55% of home buyers are actively searching and trying to make the purchase while 33% indicated that they remain optimistic with the market despite the current health challenge. With such optimism, 41% (close to a half) of homebuyers are trying to make a purchase as soon as they can which shows that the real estate market is still in full force. Furthermore, the livelihood of the real estate market is also driven by the fact that 63% of the consumers are saving more money while staying at home and investing in real estate. Thus, all of these often translate into low inventory of homes for sale and thus, higher listing prices.

Know your budget. Homebuyers should do a preliminary calculation on how much they would need to close the home that they want. The calculation should factor in the down payment, closing costs, home inspections, and other fees (consult the listing agent). The buyer would then assess his/her own budget and speak to a loan officer to ask for the difference. A good credit score is beneficial in the case of taking out a loan (minimum score required) as the officer would help to find the best loan program for the buyer. It is a general rule of thumb that homebuyer would need to know how much he/she can put upfront and how much loan he/she qualifies for in order to proceed with the purchase.

What you need to have. Before heading out to search that perfect home, the homebuyer would need to know what he/she wants in a home. He/she should write down on a list of the most important things for his/her needs and wants. Fine tune the list along the search and define the “must-haves” to help narrow down the search. The goal is to make the homebuying process quick and easy with all the homework done beforehand!

Ready to strike. After doing all the homework as mentioned above (e.g. preliminary calculation, define the must-haves, talk to the lender, etc.), be ready to make the best offer on the home that is the right fit. The seller would acknowledge and value the confidence of the buyer who has done their homework.

Making the strongest offer. Unfortunately, there could many buyers making offer for a property at one time. This could turn into a bidding game where the seller would pick the highest offer. This entire process is nerve wracking because your dream and efforts could be crushed. Therefore, important that make the best offer that the seller likes and eventually agrees to sell. Ask the agent to help negotiating with the seller to find out the price that he/she wants and go from there.

Get a realtor and know him/her well. One of the unknown facts until the buyer gets into the buying is that realtor services are free which are included in their shared percentage. Realtors also know a great deal about filling out all the necessary paperwork and has an extensive connection with lenders, attorneys, inspectors, and so forth. They are good resource to answer questions and get help.

Topics: real estate investment, real estate tips

Work cited: AZ Foothills; https://www.arizonafoothillsmagazine.com/in-house/in-house-news/5-tips-to-buying-a-home-in-2020