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Covid-19 has touched every aspect of modern life including how we interact with each other, schooling our children, and especially business transactions. The impact of the pandemic has been disastrous for the world’s economies and this has extended through banking, businesses of all sizes, and real estate.
The unpredictable nature of the pandemic that has caused so much lockdown and restrictions means that house prices actually rose in 2020 as many people were forced to work from home, which meant that they needed more space. However, many industry analysts predict that the housing market won’t sustain this boom and may collapse at any time.
In order to protect yourself should you wish to buy right now, there are some things you can do, such as:
Use a reputable firm
Expect market fluctuation
Insist on a visit or inspection
As with anything involving large amounts of money, it is always advised to use a well-known and respected real estate firm when buying a property while owing to the imminently predicted collapse, you should expect prices to be as volatile as the pandemic itself and always insist on a proper visit so you or a professional can inspect the home.
Research a Good Agent
There are probably many real estate companies in your area and knowing which one to choose can sometimes be a daunting task. When Googling any company you will always get the odd negative review, no matter the reputation of the firm but this is usually a disgruntled customer who expected more than the firm could possibly deliver or even a rival firm posting negative press.
For this reason, it is advised that you don’t use the internet as a source of information when deciding on a real estate company and instead visit the company offices. While there, get to know the agents and their practice as reputable firms such as Matin Real Estate will always welcome prospective clients and offer advice. Visit more than one and choose the one that feels right for you and your requirements.
Keep an Eye on the Market
The pandemic had an unexpected effect on the housing market in that it actually increased in value by a significant amount of $2.5 Trillion in 2020 and through to 2021. Many believe this is directly related to the fact that many people needed more space to work from home and therefore savvy sellers saw an opportunity to make the most of their property prices as it quickly became a seller’s market and the bubble began.
However, like any bubble before it, including the 2008 housing market bubble that caused an entire world economy to crash, this one is expected to burst also. Considering you are looking to buy, you could hold off until housing prices inevitably decrease as the post-pandemic bubble deflates and they return to normal and reasonable numbers.
Assess the Suitability of a Property
Most real estate agencies will include an inspection clause in their contract when you offer a purchase of a home. This means that the final sale is only conditional on a final inspection by the buyers or a professional inspector in order to assess whether the property is in satisfactory condition. This is normally to inspect the state of the home, the grounds and assess any work that needs doing, however, post-Covid, this could also include a Covid-19 inspection.
When inspecting a prospective home, you could insist on a full and complete sanitization of the property in order to remove any potential Covid-19 infection that could be present on the home from the previous occupants, and especially if any of them has previously tested positive for Coronavirus. Then you can make the decision to move to the next phase of your life and although this might sound a little drastic, the virus can survive for a long time on some materials.