by MG5QSf5qthThe Home Buying Process in The Time of COVID-19 Pandemic
Who would have thought that a year ago homes for sale in Frisco TX would start with hand sanitizer, masks, a thermometer and health questions? These things alone will ring in all of our memories as a time of change where everyone seriously took a different look at how we live in every area of our lives including the Frisco real estate market.
Just like the world over we have all been impacted by these unprecedented times with the COVID-19 Pandemic. As families have been in locked down for extended periods of time, many are finding that they have simply outgrown their home, are in need of something more or are desiring to relocate. The Pandemic has put many in a position to look for homes for sale in Frisco TX to expand or change their living situation or even to invest in property for the future. Because of the Pandemic many factors are now impacting the home buying process. The one word that is resounding loudly in the Frisco TX real estate market is CHANGE! Potential buyers are having to consider more when they are wanting to purchase.
Many are finding that market prices may be in favor of the home buyer, however, potential buyers are also thinking about the WHY behind the purchase. Many home buyers are considering a purchase to live in their new home permanently, this is great in this selling market as long as the buyer’s financial situation is in line with their future expected or unexpected financial needs. If the buyer is purchasing a home in order to flip the purchase, they should consider the fluctuation of the market during a pandemic as they could end up on the other side of the market where they could have lower housing prices that could be temporary or last for years, and they may be unable to sell, move or flip the purchase. The buyer could potentially have more invested for a longer period of time it which they may find themselves unprepared.
The traditional way buyers qualified for Frisco new homes for sale has also changed in the buying process as home buyers are now coming with ready made decisions to purchase. 2 years ago, top real estate agents in Frisco TX could see a number of people interested in buying a home, but only a handful were pre-qualified for the new homes for sale in Frisco TX.
With the Pandemic requirements in the home buying process are also changing as family’s employment and financial situations have drastically changed. Potential buyers should consider having a backup plan. In the midst of the Pandemic the uncertainty of employment is rising everywhere. As businesses are continuing to be impacted many companies are having to downsize and eliminate positions and some have even closed. Because of this, the buyer should also consider their current income, is the buyer strictly relying on it to meet the mortgage obligations or does the buyer have a long-term savings or cash reserve that they can tap into in case of a financial change in this volatile environment.
Another change is occurring at the financial level. Prior to the COVID-19 Pandemic financial institutions were more excepting of credentials to verify employment, credit reports, paystubs, etc., these all could be dated within the last 60 Days. In this new process of home buying financial institutions are becoming more restrictive and only allowing these documents to have a maximum of being 30 days old. This is a major change as financial institutions are keeping a close eye on the funds that are being made available for real estate purchases.
However, potential buyers in the Frisco TX real estate market are also doing their due diligence and are considering many areas of financing, and preparation as they have utilized this time of being locked down and shut in to consider the pros and cons of the purchase of their dream home. Many buyers are using their 401K, Rainy Day Fund or Long-Term Savings, to make a down payment or to purchase a home. Many buyers have saved a lifetime to get their perfect home. It’s a great plan, but also, many are also considering that once these funds are exhausted that they may not be in a position to fund other needed items or to meet any emergency obligations that could potentially arise, such as needing a new roof, storm damage, furnace repairs or installing a new air conditioner. Many are discovering that if there is just enough to cover the down payment, closing and fees, that they should also have enough in their down payment, cash reserve and savings to tide them over in case of an emergency, loss of employment, large house expense or improvement.
In addition, buyers are also becoming more aware that if they have to sell their current home to purchase a new home that they could potentially be putting themselves in a financial situation that they may not have considered for the future, such as a contract falling through or they may have to sell their current home for a lower price. If the buyer has already invested earnest monies into a property purchase, they may have to forfeit those funds and that could affect their purchasing option, their financial position and desire to purchase a home. They are realizing that during a pandemic if any of these factors are of concern that this may not be a good time to purchase
Many buyers are taking note of their financial situation, and are find everything in order, and are moving forward to purchase in the midst of the Pandemic. As they pursue their new home, they are also faced with additional changes that are taking place. Many of these changes are the new way to communicate with potential real estate agents. Gone are the days where a buyer could simply contact real estate agents in Frisco TX by walking into their offices directly without an appointment. More and more potential buyers are utilizing the internet to view and to determine many factors of the buying process. Buyers are determining if they want to visit the property prior to contacting an agent due to the ease in which many different real estate listing websites like Zillow.com, Trulia.com, and Movato.com. These websites provide the buyer the opportunity to take virtual tours, 3D Tours, utilize pictures and in some cases provide actual measurements of the home and more. This is allowing a potential buyer to gain more insight into houses for sale in Frisco TX whereby they can make a more informed decision prior to contacting and interviewing potential Frisco real estate agents.
Buyers are also getting to know and establish rapport with their potential agents by utilizing social media. Although the face-to-face factor has been removed, many buyers are enjoying this new technological process, as they save on time, gas and other expenses that go into meeting with the traditional realtor in-person and it gives the buyer the opportunity to interview several Frisco realtors in a shorter period of time to see if it is the right fit for them.
The Frisco TX real estate market is also seeing a change in potential buyers who are very serious, as they are pre-qualifying by obtaining a letter of qualification from their financial institutions which is helping them come prepared with the proper paperwork and earnest money to secure a new home. This is a great change and an upswing in the home buying process for many realtors as it has helped their time management in working with serious qualified candidates of Frisco houses for sale whereby, they are able to close on more Frisco new homes for sale.
Among the changes that are taking place within Frisco TX realtor’s community during the COVID-19 Pandemic is that agents are taking health and safety very seriously, as they are no longer escorting their potential buyers to the property for showing rather, they are meeting their potential buyers at the home they wish to preview. Another plus in real estate safety works in the favor of the current home or property owner as they can have more assurance of the number of people who are visiting their home on any given day. Agents are conducting health screening for buyers prior to entering a property for showing. Upon entering many buyers are pre-screen with a questionnaire, have their temperatures taken, have to wear a mask and gloves. Many agents are also requesting that potential buyers not touch anything in the home, rather, the owner or agent will open cabinets, appliances, turn the lights on and off, open closets and doors for viewing. Today, to buy a house in Frisco may take a few extra steps, however, agents are taking the health of everyone very seriously as families preview and desire to buy a home in Frisco TX.
The COVID-19 Pandemic may have changed the manner in which houses are previewed and purchased, technology has become more inventive to help the process of purchasing a home from the privacy of a buyer’s home very simple and easy. The professional real estate market has adapted very quickly to the new process of buying and selling real estate in Frisco TX.
