As I was discussing ideas with my wife for this week’s column, we thought the best idea would be to simply answer the questions that we are getting consistently during the Covid-19 outbreak. You may be like me and are sick of hearing about Covid-19. I have had to really limit my screen time when it comes to the news because it really is discouraging. That being said, the coronavirus is impacting every corner or our city and country, including the real estate market. Therefore, here are the answers to some FAQ’s:
If we are headed into a recession, should I buy now or just wait for values to drop first?
I received this question from an associate of mine this week who is moving to Colorado. This is a tough one because we know that historically home prices will drop in a recession. If the current unemployment situation depletes the buyer pool in a significant way, sellers will have no choice but to price more competitively in order to attract a buyer. Yet at the end of the day, a buyer’s mortgage interest rate will have the biggest impact on affordability. We know where rates are today and don’t know where they will be in 30, 60, or 90 days. A best practice would be to purchase while rates are low like they are now versus rolling the dice that both rates will stay low as values drop heading into the recession.
Can a buyer still have access to a home for inspections?
Yes. The protocol for inspections has changed, but yes a buyer still has the right to inspect the home they are purchasing. In most cases, the buyer’s agent will open the door for the inspectors and allow the inspector and their team to enter and inspect without anyone else in the home. The buyer’s agent and the buyer must stay outside to limit the number of people in the home. Only the purchaser on the sale contract is allowed to attend inspections. Family members, boyfriends/girlfriends, and even the children of the purchaser are not allowed to attend inspections at this time. Some inspectors are willing to do a Zoom call after the inspection to cover any concern items with the buyer and other decision makers.
As a potential home seller, should I worry about a buyer’s financing?
A home seller should always concern themselves with the quality and thoroughness of a buyer’s financing pre-qualifications. As a listing agent, one of my first steps is to speak with a potential buyer’s lender to make sure that their financing is solid and that ALL required documents (tax returns, bank statements, and pay stubs) have been reviewed by the lender. A buyer’s job and/or employer could also have an impact on the strength of an offer and the buyer’s ability to perform on closing day. Potential layoff’s and furloughs in the buyer’s industry could be something for a seller to consider as they review potential offers.
If you have questions for our team about any and all home related topics, or questions about the current real estate market, please email us directly. We welcome questions from our community as we strive to be your source for all things real estate related.
This sponsored column is written by Chad Taylor of the Taylor-Made Team and Keller Williams Realty Key Partners, LLC. The Taylor-Made Team consistently performs in the top 3 percent of Realtors in the Heartland MLS. Please submit follow-up questions in the comments section or via email. You can find out more about the Taylor-Made Team on its website. And always feel free to call at 913-825-7540.