Buying A Home During the Covid-19 Pandemic

In January of this year, I couldn't have imagined writing a "how to buy a home guide" during a pandemic. 

Life will not "go back to normal" this summer, next fall or maybe ever. The pandemic swiftly altered our everyday routines and will shift the way we live the rest of our lives.

Sure this sounds drastic, but it's already happening and we're only a few months into living life with the coronavirus. 

What Every Home Buyer Needs to Know About Buying a Home During the Covid-19 Pandemic 

• Housing Inventory is at record low levels. According to Realtor.com the volume of newly listed properties nationwide is down by 10.6% since last year. In Maryland, home sales are down 32.4% in May 2020 as compared to May of 2019
• Lenders have more restrictions on some of their loan products. The first step in the home buying process should be talking to a lender. Understand how covid-19 has changed the loan process and how you can prepare. Now more then ever, you need to work with an experienced local lender! Home sellers & listing agents need to know you and your lender can get to the settlement date. By choosing to work with a reputable local lender, your offer may offer the seller peace of mind. 
• As home buyers, you will need to do homework. This means watching virtual home tours, driving by houses and through neigborhoods of interest before you schedule a tour with your exclusive buyers agent.  
• Most home sellers require home buyers to wear masks, gloves and sometimes shoe coverings while touring their home. Yes, this is cumbersome and slows down the process. However, it's important to respect this request. A home seller may have pre-existing conditions that are a particular concern during this pandemic. Two weeks ago, we had to sign a Covid-19 waiver and wear all the appropriate gear before touring a property for sale. We met the home owners as they were leaving the house. The wife was obviously not well and thanked us for taking the proper precautions while touring her home. I think of her everytime I go into someones house and feel a deep responsibility to show properties with great care. 
• When you are buying a home, begin with the location and work down from there. In other words, does the location work for you? Will you work from home or need to commute? Have you checked the local taxes to see if they fit your budget plans? Did your agent provide a link or information to the County Master Plan? After evaluating the location of the home, check out the neighborhood, quality of the lot and then...the house. 
• If you have the skills or money to buy a not-so-perfect house, now is the time to buy a home! Homes that need updated bathrooms and kitchens but are otherwise in good condition are a smart purchase. This is what you should discuss with your agent. This week, I'm working with a new home buyer in Washington DC. As we evaluate properties, he's evaluating his DIY skills to determine how much of a fixer upper he wants to purchase. 
• If you want to buy a perfectly remodeled home, gear up for some competition. There are ways to protect your interests and make a competitive offer but this only happens by understanding the market conditions & what you are comfortable offering. This takes time and your agent or a lawyer should explain every part of a residential contract before you make an offer.

Still have questions about the home buying process? I'm happy to answer any questions even if you live outside of the Greater Washington-Baltimore-Annapolis area.

Good luck & stay safe!