3 Key Things To Know When Purchasing Property In A Pandemic
While the ongoing pandemic has created a lot of uncertainty within industries and households alike, one thing is for sure:
Over the last couple months, the entire world has shown an astonishing ability to adapt and get things done. Technology (ex. virtual tours) has allowed agents and clients to continue working together.
If you have clients looking to make a home purchase right now, I’d like to share three key points you can guide them on during this time.
|1. “How do I negotiate an offer right now?”
Empathy and awareness are important. While sellers might be open to lower offers during this time, most people won’t want to deal with someone they feel is trying to low ball and take advantage of the situation. Help clients understand the value of the home they’re interested in, and help create a reasonable offer.
|2. “Understand a longer closing period is likely”
For now, going straight from getting that offer accepted to the closing table is no longer the norm. With social distancing being a top priority, many of us are shifting to remote work. Clients should know that closing may take longer than the usual 30 days, while appraisers, home inspectors, and repair contractors adjust their workflow and availability.
|3. “Waiting for loan rates to drop may backfire”
Due to COVID-19, rates and investor guidelines are changing on a day-to-day basis. Because of this, locking in current mortgage loan rates instead of floating them to hope they go down further may be the wisest choice for clients, right now. With rates already at historic lows to begin with, this also locks in the underwriting guidelines at the same time so clients aren’t affected by subsequent changes.
|By locking in a mortgage loan rate today, your clients can rest assured they’ll have a rate (and loan qualifications) that won’t budge due to changes in the market.|
Additional Tip: Encourage your clients to over-communicate with their lender. Once again, the credit markets are shifting rapidly right now. It’s more important than ever for your clients to be working closely with a mortgage professional like me that can help keep them in the loop, find and secure the best financing for their current situation (and future goals), and swiftly navigate the closing process.
Contact me today to discuss how we can work together to help your clients negotiate an offer for their dream home during this time!
Bill Nickerson | Senior Loan Advisor | NMLS 4194
Cell: 978.273.3227 | 1500 District Ave | Burlington, MA 01803