The spread of the global pandemic known as Covid19 has brought a great level of uncertainty to many Americans. Everyday activities are being restricted, family members cannot be visited, and most events have been canceled. However, some big decisions just can’t be canceled; such as buying a house. If you are stuck and need to buy a house during Covid19, here are some tips.
Ensure Job Security
If you are currently in the market for a house, make sure, to the best of your ability, that your company will not be furloughing you. In order to qualify for a mortgage, lenders will need to look at your employment history and check that you have a stable income. If you were to purchase a house and then lose your job shortly afterward, you would run the risk of losing the house to foreclosure.
House prices have generally been fairly stable throughout the pandemic. However, it is likely that they will fall shortly after the state of emergency is lifted, when many people will try to sell. Do not spend more than you are comfortably able to, as the value of the house may decline in the short-term anyway. If you are set on a house that is over your budget, you may be better off to wait and see if it will decrease in price.
No In-Person Visits
During the pandemic, the majority of open houses have been canceled, and even private showings are not recommended. It is preferred that the potential buyer view the house through a virtual tour. Many real estate offices are only allowing showings if the buyers are prepared to make an offer on the spot. This can be stressful to choose a house sight-unseen. As well, you may miss some problems that you would have noticed had you been there in person first.
Workers will not be Available
If you purchase a fixer-upper with the intention of restoring it to its former glory, you might have quite a while to wait. Many construction companies are not starting projects in residential houses due to fears of contamination from the virus. Building supply stores are open again, but there are substantial delays with receiving materials. Certain items might not be in stock, and a visit to the store could cost hours of waiting in line to get in.
No Backing Out
Many people who bought a house right before the pandemic hit, or just in the early days, quickly got buyers’ remorse. They worried that they had overspent on the house, or that their income would be affected and tried to back out of the deal. However, a global pandemic is not an excuse to back out of a closed deal. They mistakenly believed that they could just forfeit their deposit and walk away. However, this is not the case. If a seller has to re-sell to somebody else at a loss, that first buyer could be responsible for paying for those losses.