The COVID-19 Driven Real Estate Market

By: Maria Girlie Pascual

 

I was ready to hunker down and just happily take care of my one-year-old grandson after his mom passed so soon last May, right after the numbers of COVID19 people that tested positive or were sick from the virus started spiking. Along with this, the unemployment numbers hit more than a million when parts of the country put in a “Stay-in-place” order to prevent the virus from spreading, except for “essential workers” who were free to go to work and help keep the country going like health care workers, truckers, grocery personnel, and, yes, real estate brokers. I was as surprised as you, dear readers, but we made so much progress from the real estate triggered recession of 2008 that the “powers that be” in the government thought that by keeping the housing market alive in the pandemic, and lowering rates at the same time, this sector of the economy will thrive, and their gamble was right. We have more buyers than inventory and this has been one of the busiest working summers I have had in a crisis.

I have been competing for my buyers with multiple offers on different properties, and motivated sellers sweeten the deal with renovations and HGTV inspired remodeling that the milennials look for. Soft grey is still the most popular color for interior walls, with white trim and doors throughout the house. It gives any home a fresh, modern feel, and white kitchen cabinets with quartz counter tops are second “must haves” in residential housing. The third “wow” factor are the hardwood floors..bye bye carpets, hello hard surfaces! Have all three if you’re selling and you will most definitely attract the most number of buyers who look at the pictures of your home online before they call a broker.

A short list of what a buyer needs to do to make sure they can compete for a chance to buy these limited homes will be:

1) START WITH THE MONEY: Talk to a bonafide lender- -don’t get sucked into getting pre-approved by paying upfront fees. Run away from those online lenders that ask for money to do a prequalification. Your local bank or even your Realtor can help you with that process. You’ll need to know how much down payment you need or cash to close, how much your monthly payments will be including the principle, taxes, mortgage insurance (if you’re putting down less than 20%) and utilities and Homeowner’s association fees if it’s a condo.

2) GET A COPY OF YOUR CREDIT REPORT: If you talk to a lender, they can guide you and explain to you what’s on your credit report. Maybe with a little tweaking and cleaning it up, you may end up getting a better rate when your credit score goes up. The lender or banker can also answer most of your financing questions like down payments, closing costs, monthly mortgage payments and interest rates.

3) DECIDE ON A LOCATION: Find out what neighborhood will work best for you and your family’s needs. Is it close to work, to public transportation, to your kids’ school? Is there a park, grocery store or a church nearby? Are you close to family that can help with babysitting, and so on and so forth, but the most important thing about location also is, how are the properties appreciating in this area? Now that’s where the real estate broker can help.

4) WHAT FEATURES ARE IMPORTANT TO YOU? How many bedrooms, how many baths, do you need a basement, a two car garage, a fireplace? This is where lifestyle comes in…do you want a big or small yard? Do you have time to mow the lawn? Maybe a condo or townhome that takes care of the exterior maintenance suits your family better? All these should factor into your home search.

5) HOW SOON DO YOU WANT TO MOVE? This is an important question that you should share immediately with your broker. Vague goals like,”If I find a home that I like I will move” Oh boy, not in this market—what if you have a lease? If you have a home to sell? If your credit needs to be worked on? There’s more to home buying than just getting into a car and looking at everything out there. It will be a waste on both yours, and your Realtor’s efforts if you have no definite time frame to move.

By preparing yourself before you start house hunting, knowing all of these things that go into home buying will make the process more enjoyable, less stressful,and a way to bond with your spouse, children and a chance to know yourself, if you’re buying for yourself.

The choice of a real estate broker is also important, especially now when we need to wear masks and gloves, bring hand sanitizers etc, when viewing homes. If I have a family that wants to see homes, I usually tailgate with them to the homes, but if it’s a couple, I take them in my car but have them wear masks when we drive to these homes. You have to feel comfortable with the broker, and trust them with the information and help that they are providing. Most of my clients become friends, and since I now work with generational buyers, they also have become family.

Call or email me for your real estate questions and concerns. Put my 35 years in the business to work for you, and with you, in taking care of your real estate goals, whether you’re buying, selling, or even just asking! Please stay safe and practice social distancing, wear a mask, and pray for the end of this pandemic.