First-Time Homebuyers: Navigating Current Market Conditions

CENTURY 21 Mertz & Associates September 13, 2020

Buying a first home is never a simple process. Even at the best times, finding a good home comes with lots of stressors, from loan approvals to bidding wars. But buying your first house during the COVID-19 pandemic? That comes with its unique set of issues to deal with. While a first-time homebuyer can ask friends and family about the home-buying process, we've never experienced such a crisis before, so you'll be navigating uncharted waters. The pandemic has brought many challenges, but you don't have to put your homeownership dream on hold. Things are a bit different than they were pre-COVID, but our real estate agents give you these tips to help you navigate the current market conditions as a first-time homebuyer.

Don't Expect Bargains – When the pandemic hit the nation, many buyers were making low offers on homes thinking that sellers were panicking. And then you'd think that not many people would want to move houses during this crisis. Wrong. There's a pent-up demand for homes, but the inventory is low. Sellers are getting more offers and closing quicker than usual.
The Typical House Tour Has Changed – Since the pandemic, home tours and open houses have been turned upside down due to social distancing and sanitary measures. You need to be prepared to become an expert in digitally touring spaces. This means looking at photos and videos posted by sellers. Alternatively, you can schedule a video tour with your real estate agent, which allows you to ask questions or get a little closer look at everything you're curious about. But if you insist on physically touring a home to see every nook and cranny, the process has become more stringent and meticulous to keep you and the seller safe.
Get Pre-Approved Before You Start House-Hunting – The coronavirus has had significant effects on the global economy. In response, many banks and lenders have changed their standards and guidelines. Many are asking for larger down payments, have raised minimum credit score requirements, and are running employment verifications several times before approving a loan. This has knocked out a lot of people. That said, it's important to work with a lender before you start househunting.
Negotiating for Extras May Not Work – With many homes on the market, buyers get some power. They can submit an offer below the asking price or ask for extras to sweeten the deal. For instance, a buyer may ask the seller to leave behind an appliance or make some improvements. In 2020, we're in a seller's market with the lowest inventory ever. This means that you'll have to make sacrifices to be competitive.
Work With a Reliable Real Estate Agent – Working with a trusted real estate agent is crucial for a successful home-buying experience. An agent is even more invaluable under this unique set of circumstances. Your agent will be your eyes and ears on the ground. You'll depend on their judgment, advice, and even trust them to point out things that can't be captured by pictures or videos.

Even with the challenges and uncertainties of the current real estate market conditions, you can make choices that will set you up for success. Our team at Century 21 Mertz & Associates can assist you in looking at Danville homes for sale, and help you make an informed decision. Contact us to get started.