How to House Hunt in a Pandemic — Virtually!
We are living in extraordinary times. Not only are the Raiders now the Las Vegas Raiders, the NFL bumped the 2020 Pro Bowl scheduled for Allegiant Stadium to 2022. Thank you, COVID.
I appreciate erring on the side of health and safety. But I’d be a liar if I said I wasn’t frustrated or disappointed or plain old sick and tired of the whole situation.
And I bet you are, too. Especially if buying or selling a home is in your future, as it is with many Raider fans wanting to move to Henderson, Nevada. Especially those fans who live in high-priced California.
Real estate transactions are a bit different, as you can imagine, in a pandemic. The basics are the same — a property owner sells to a property buyer. Hopefully both parties are pleased and walk away thinking they got the better deal.
Following are some changes you may expect if buying or selling real estate in today’s virus-laden climate.
Virtual Home Tours
Most likely you’ll be taking home tours virtually in order to adhere to social distancing protocols. Today’s technology makes this very easy and efficient. Yes, I agree with you, it’s not the same as visiting in person. The good news is that I have years of experience with long distance transactions as many of my clients are international transplants to Silicon Valley who needed to secure housing before arriving in the United States. Virtual real estate transactions are my forte. Though some markets are allowing in-person showings, it’s probably to your advantage to become comfortable with virtual house hunting.
Slim Pickings
The low number of houses on the market is a good thing/bad thing sort of situation. First, the good thing. Buyers may be in the driver’s seat for negotiations. Since the market has calmed down considerably, sellers are not as likely to play hardball. The bad thing is your choices may be limited. Let’s face it, the economy, COVID, and the future, in general, are uncertain, resulting in many would-be sellers’ game plan to be one of sitting tight.
Alternative Appraisals
An appraisal determines how much collateral is in your new home. Typically, an onsite appraisal is required. The Federal Reserve eased the appraisal requirement for most mortgage lenders due to the pandemic. According to mortgage department at Wells Fargo, “Now a lender may use an alternative appraisal for certain types of mortgages, as long as the appraiser uses a combination of the following: tax records, property sketches or pictures, videos, or drive-by inspections of the home. And in some cases, an appraisal may be delayed for up to 120 days upon closing.”
More Verifications for Loan Apps
Applying for a mortgage online is not new, but the pandemic has made it necessary. Financial institutions as well as independent loan brokers and agents are set up to handle online applications, and if they aren’t, you may want to rethink applying with that particular business. You’ll be able upload the necessary income verification documents, too. There’s a good chance you’ll have to verify your income more than once before approval. Don’t let that rattle you. I suggest you shop around with at least three different lenders. If you need a referral to a lender, ask me. I’m happy to help.
Digital Closing
At this stage of the transaction, the digital closing won’t come as a surprise. Along with digitally signing all of the paperwork, you’ll probably e-meet with a notary and get everything finalized through a video conference, using software like Zoom. There also are drive-thru closings, when geographically possible documentation signings can take place in a car.
I hope the above information is helpful. Do you have a question I didn’t answer? Let me know as I’m happy to help. Don’t let COVID sideline your dream of buying a home. The strategy may be different than what you know or were expecting, but it is possible. I like to think anything is possible.
Is there a real estate- or relocation-related topic you would like to discuss in this blog? Let us know at info@raidersrelocators.com. We look forward to hearing from you.
