Pros and Cons of Buying a House During COVID



Image Source: Pixabay.

Yes, covid-19 is still at large, and yes, there are still people dying, but does that really mean that you should put your house-hunting plans on hold? Sure, most businesses have been put on hold, and the virus can be passed down from one person to another with these oh, but it’s not the end of the world.

Believe it or not, there is a way around this; that’s what we have prepared for you here in this article.

While implementing social distancing measures and practicing other methods of keeping yourself from getting infected, it is, in fact, possible to both buy or even sell a house. 

In this write-up, we’ll talk about the pros and cons of buying a house in the covid-19 era before getting in touch with a professional building company like stouffville home builders. But before we do that, let’s have a look at how social distancing has affected one’s ability to buy a house.

How Social Distancing has Affected Our Ability to Purchase a House

Social distancing involves creating a space between yourself and others to prevent the spread of the covid-19 illness. According to general guidelines from the CDC and WHO, individuals are required to keep at least a 6ft distance from the other person. 

Since much of the buying and selling of houses is done through face-to-face interactions and having several people visit houses, social distancing has made it almost impossible to do so. When it comes to the real estate community, social distancing may lead to the canceling of open houses and walkthroughs and rely instead on virtual meetings like through zoom. What’s more, it forces us to develop  new ways to get appraisals and closings done or perform them with more caution in mind.

So without further ado, let’s look into the pros and cons of buying a house during the covid-19 pandemic:

Pros and Cons of Buying a House During Covid-19

Pros

  1. Rates Are at Record Lows

According to Andrew Helling, owner, and real estate agent of authority, “rates are experiencing all-time record lows.” This means lower payments, and because of the fact we aren’t sure how long the pandemic will last, these rates could remain as they are for quite a while until then. 

Helling says that we’re experiencing what could be a historic financial slowdown. 

  1. Less Competition

Another advantage of hunting for a house during covid-19 is the fact that there’s not much competition from other buyers. This means that you have more chances of buying a home than your rivals, provided you undertake the proper preventive measures. 

If you start your search now, you can get a good deal out before the crisis passes, and there will be more house-hunters back on the market with escalated price rates. Lord only knows if you’ll ever get another golden opportunity like this.

  1. Knowledge of the Market Through a Realtor

Look for a reputable, knowledgeable, and ethical real estate agent who knows the housing market’s ins and outs and has all the relevant data about which houses are being put up for sale. Like those from stouffville home builders, real estate agents should be aware of the current market rates and will guide you accordingly, especially keeping you from overpaying for a property. They’re also wary of the properties that are on sale but not exactly advertised as much as they should be. All in all, buying a house through a real estate agent is the most logical action course. 

  1. Take Advantage of a Price Rise in the Future

Seeing as how there’s a slowdown in the construction sector, it’ll be a while before the market witnesses any new supply. And even if there are positive signs of the situation getting better, it could take a month or two for the market to fully recover and start supplying once to recover and start supplying once again fully. Since demand is typically more than supply, the upcoming quarters could see an incline in property prices. This means that if we invest now, we can take advantage of the appreciation benefits later on if we invest now. 

Now we move on to the darker matters, which are the cons of buying a house for yourself during the global pandemic.

Cons

  1. Buyers Who Get Laid-off May Lose Their Loan Qualification

Some home buyers who are either laid off or furloughed due to budget cuts might end up losing their loan qualifications, which is what Al wisnefske, broker and owner of Land & Legacy Group, says. Some of the deals that are still pending might end up amounting to nothing. And because there are businesses still closing and people still working from the comfort of their homes, banks and title companies may not be as efficient.

  1. Delay in Project Delivery

Given the extension of the lockdown and construction activities being ceased, you can expect many delays in delivering projects. Besides that, given the current liquidity crisis and migrant laborer exodus, the real estate sector’s ongoing state has become challenging. That’s why buyers need to look for real estate makers with a proven track record in project delivery times. 

  1. Purchasing a Property Without Seeing it

Apart from some deals not going through, another problem that could present itself during these dire times – the inability to make a deal. But besides that, there is an even worse situation than we could deal with, and that is purchasing a property before seeing it or investigating it in person.