Real Estate
Should You Buy or Sell Your Home During the COVID-19 Pandemic?
If you are looking to buy or sell a home during the Pandemic, it is still possible.
NATIONAL ASSOCIATION OF REALTORS®, recommends only one buyer enter a home at a time, with 6 feet between each guest. NAR also recommends agents have potential buyers wash their hands or use hand sanitizer when they come in the door. They should also remove their shoes. Children should not be present at any showings during this time.
With mortgage rates fluctuating quickly and closing times taking longer than usual, some lenders are extending mortgage rate lock periods. You can obtain a good rate and hang on to it even if your lender takes longer than usual to process your loan. This outcome will also depend on the rules of your lender and the type of loan product.
An important step in getting a mortgage is proving the borrower has a job. In pre-coronavirus days, lenders called the borrower’s employer for a verbal verification. The Federal Housing Finance Authority, which oversees Fannie Mae, Freddie Mac, and federal home loan banks, has relaxed the rules for loans backed by the federal government because so many businesses are closed. Lenders for federally backed loans now accept an email from an employer, a recent year-to-date pay stub, or a bank statement showing a recent payroll deposit as proof of employment. These documents will be mandatory to close your loan.
Traditional closings, where everybody gathered around a big table to sign the final papers, are no longer possible. Since most buyers hire attorneys, they can coordinate with Title companies and banks in dealing with the limitations to close deals.
Solutions for Home Buyers
● Tour homes virtually or via Facebook Live or Facetime
● Social distanced one-on-one appointments with your agent
● Video Call-in Inspections
● Drive-by Appraiser Valuations
● Doorstep Notaries
Home buyers can schedule in person appointments with their real estate agents while practicing the six foot social distancing rule and online shop for homes via virtual tours. Inspections can be held via video call. Inspectors can work solo, no buyers in attendance, sanitize anything they touch and call you with their findings after they’re done. Appraisers are doing drive-by valuations. Masked and gloved notaries are getting signatures on doorsteps for closings.
Solutions for Home Sellers
● Virtual 3D home tours
● Facebook Live Open Houses
● Buyer social distancing and sanitation practices
● Newly Relaxed Mortgage Rules
● Low Mortgage Rates
To assist sellers in selling their homes, some agents have conducted home tours via FaceTime and other similar tools for years. These platforms have proven invaluable for home buying and selling during the pandemic. Real estate sites report a surge in the creation of 3D home tours. Sellers or Agents can host open houses on Facebook Live.
The real estate industry is creatively and safely responding to the pandemic situation, and mortgage rates remain low. A real estate agent is a great source of information about home buying and selling during the pandemic to help you feel comfortable about the process. There are contract addendums and showing addendums to assist with the buying and selling process.
At the end, if buying or selling a home is important to you, it is still possible during this Pandemic.
Marsha Bowen Washington, Real Estate Agent/Real Estate Advisor
Coldwell Banker Realty, Livingston, NJ
www.marshasellsnjhomes.com
“During the housing crisis, Marsha was able to assist over 300 New Jersey homeowners avoid home foreclosure through home preservation programs and short sales. She is an award-winning agent with a long and impressive list of designations spanning from certification as a distressed property expert to a senior real. estate specialist. Her goal is to offer a positive and pleasant experience for home buyers and sellers. Educating first time home buyers is one of her many specialties.” - 2020 Essex County Top Real Estate Agents
Photo: See a video walkthrough of this beautiful historic Victorian home in the Seven Oaks section of Orange, New Jersey.
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