From the beginning of the year of 2020, it has been an unbelievable experience as the COVID-19 pandemic happened and in a matter of days, people’s lives have changed dramatically in ways nobody would have even imagined. Most places that conducted businesses were forced to close due to insufficient payments because of the fact that people were forced to stay home and work from home and only leave their homes if necessary. As major organizations and airports shut down, the real estate industry has taken a hit, from the fact that nobody has planned for something like this to happen just in case they needed to extend their contracts or have to travel home.
Instead of spending their time doing recreational activities and eating out, people have only started to go out if they need to get food and home supplies for their households yet most places can have these things delivered nowadays. This year has been difficult for each industry, with most economies of the world having been affected throughout the year. This is the best time to figure out what you will do if you have real estate property and what you can expect by the end of the year. Housing markets around the globe have been growing since the downfall of the COVID-19 pandemic. It is believed that the virus will have its own protocol for another year, which is felt that home prices can drop.
During the pandemic
Since March 2020 and the pandemic has started until now, it is better to figure out what will happen and take advice from professionals and investors as well as real estate agents so that you can make the best out of any opportunity that can arise in the real estate industry in 2020. Before March 2020, housing markets were at a high demand and the homebuyers were endless but after the pandemic, there have been less people renting and looking forward to investing to purchasing a home because of the dropping prices. Then there are the people who are choosing to postpone to purchase a home or put their home until the pandemic ends but whenever that may seem, there will always be people still buying and selling and choosing the right decisions. Regardless to the opinions of many, the uncertainty of the economy has affected purchasing, selling and even renting throughout the globe. Then there are those who are being opportunistic and taking advantage of the cheap rates in mortgage and being able to sell their homes on great credit scores to be able to get a better deal at a better and bigger home.
Are you a Seller?
When it comes to home sellers, a nice chunky sum of profit might be coming your way if you keep in mind that many buyers are being priced out of the market, which could lead less offers towards your household. With less offers, you would like that your home really stands out among the rest that remain to look the same around the area. Always put into consideration that you should wait for the right offer and not have to rush into any hasty decisions. Most buyers will try to decrease the valued amount that you have put out in the public just so that they can get the best offer for themselves but always wait for the offer that you can receive the right amount of profit. Always remember when it comes to negotiating that the more desperate person has less power because they would be willing to accept anything under any circumstance so it’s better to hear all the proper offers that might be coming your way regardless what you might hear, only listen and accept the offer that might peak your interest.
If you want to buy in 2020
On the other hand, if you are looking to purchase a house throughout this year then it is better to stay resilient and motivated so that you can save the right amount needed for that down payment you would want for the dream house that you were looking forward to purchasing. Just remember to not exceed your budget and keep saving because there will be sacrifices that have to be made because if you cannot afford the house that you have in mind, be willing to let go of all that you may want and be focused on what you will need so that you can properly save. It is also better to find the least pricey home in the neighborhood that you can afford and be able to increase your income as your savings will be better over time. Just remember if the interest rates remain to stay lower than the average that there will buyers that will be more motivated to purchase your property sooner than you think, but if the rates increase later during the year, just don’t be worried when your house stays on the market longer than expected. Having to pay for a mortgage is a huge responsibility so when there is added interest rates that are higher for the consumer, then it will obviously be much more difficult to make people start purchasing homes when it’s not convenient for them at the moment.
What this means for you
A real estate agent with experience will give you all the right details that you will need to know and even feed you to set the best expectations on the price to sell your home and how long you will have to wait for the best offer and they will not let you down with any actions along the way. In the end of the day you must decide what you really need within the household, if you are single or married looking to expand your horizons and space or if you are just looking to invest into property for the long term. Be decisive of what you want and combine that information with your future real estate agent.
Mohamed El Zaafarany is a digital marketing consultant with interests in the travel and real estate industries who loves to connect businesses with their target audiences.