The National Association of Realtors® April Economic Pulse Flash Survey revealed that ninety percent of members feel there is a decline in buyer interest due to COVID-19. However, many people still need to sell their homes if they are relocating for a job, need more or less space, or financial circumstances have changed.
As the market slows down, you need to be aware of changes to the market if you decide to sell. Your house may not get the multiple offers that were occurring before the pandemic. Appraisals are based on similar homes that sold nearby. As fewer homes are sold, comparable comps may be from several months ago and not give you the top value you wanted.
Additionally, closing times have increased. With many third parties involved, such as appraisals to title companies, the time frame to close taking longer than the typical 30-45 days. Tasks like hiring a moving company, which is not considered an essential business in most areas, or transferring utilities are also taking longer.
On the buyer side, requirements for loans are becoming stricter. Buyers may be asked to do certain tasks twice, such as resubmitting pay stubs every 15 days instead of 45 days prior to COVID -19.
Buying or selling a house during the COVID-19 pandemic could cause a lot of anxiety. Things that used to take years to change in the mortgage industry are changing in a matter of days. From interest rates to traditional tasks, you will need to expect the unexpected during this time if you are buying or selling a home.
Speak with a licensed Home Loan Advisor today to get pre-qualified and ready to find your dream when the time is right.