Let’s ignore the elephant in the room for a moment and talk about something that seems to be on a lot of people’s minds right now.
Should I buy a house right now?
It’s a question that applies to both buyers and sellers because inventory can be directly related to demand in this industry. Sellers always ask me, “when is the best time to sell?” I think at a time like this, it’s important to look at what we know.
So, what do we know?
Right now, though we have historically low interest rates, we are seeing an uptick in rates because so many people are refinancing.
There is a lot of fear and uncertainty in buyers, given how many people have filed for unemployment and aren’t sure where they will be financially when the dust settles.
However, putting a property under contract now and locking in a low interest rate gives a buyer some control at a time of relative uncertainty. So, if you wait too long to buy, you may miss the money-saving boat.
A couple of pro tips for buyers:
Right now may be a time to look for homes well under your budget. This way you better prepare yourself for closing costs, home maintenance and a rainy day fund. You want to have 2-6% of the purchase price of your home left over and set aside for those things.
But also look into ways to reduce your closing costs. Call around to various lenders to research closing-cost credits or programs that may be offered for purchases in low income areas. This will give you an opportunity to find out more about all the types of loans you may applicable for as well, and those various types of loans can greatly affect your month-to-month budget.
Now to any sellers that may be watching this:
Know that REALTORS are doing our best to ensure that your home is kept safe and germ free upon entry and exit during showings. As I’ve said before we are also offering a lot of virtual tours and walkthrough videos to ensure safety and cleanliness. And, because it’s a good time to buy, it’s a good time to list your property.
I hope that you’re staying at home as much as possible. But if you’re looking for a home, or wanting to list, know that there are safe ways to do it and right now, there is simply a lot less competition out there for both buyers and sellers.
Real estate is essential because a person’s home is where their life happens. I’m here to help however I can, let me know if there’s something I can do for you.