position realty

Position Yourself For Success

What Should You Know About Virtual Home Tours?

Starting in March, life as we knew it started shifting for most of us because of the coronavirus pandemic. Non-essential businesses were shuttered, schools were closed, and we started spending a lot more time at home.

The pandemic is still going on, despite most states being in some phase of their reopening plan, and people are doing more things virtually than ever before.

For example, some employers are saying they’ll keep their employees working remotely for the foreseeable future.

A Changing Real Estate Market?
Inevitably, these changes have impacted the real estate market. The market has been surprisingly strong through this, with mortgage rates historically low, but that doesn’t mean buyers and sellers aren’t doing things differently.

The virtual tour is one example. Increasingly homebuyers are going through the entire process online, meaning realtors are showing them homes virtually.

A survey that came out in January, before the pandemic affected America, found that prospective homebuyers preferred to work with agents offering virtual tours. The National Association of Realtors’ 2019 report called “Home Buyer and Seller Generational Trends,” found that 48% of buyers between the ages of 39 and 63 said they found virtual tours very useful as they searched for homes.

The following are things buyers, sellers, and real estate agents should know about virtual home tours.

Agents Can Go in the Home to Do the Tour
The term virtual tour is somewhat generalized, and it can refer to a few different scenarios.

In one scenario, there’s a virtual tour that’s prerecorded, and then anyone can look at it on demand.

There are also instances, particularly now, where real estate agents representing buyers will go into the home and then walk them through it live, but still virtually using something like Zoom or FaceTime.

For some buyers, this represents a better option because their agent can help them understand the nuanced details of the home that they wouldn’t have access to otherwise. If you have a real estate agent who’s doing a tour for you, it’s a much more dynamic experience.

You can ask your agent to show you closets, or provide different angles. You can also ask them to look in the backyard or to examine certain components of the house like the foundation.

What are the Pros of Virtual Tours?
Since we’re still dealing with the effects of the pandemic, one of the perks of virtual tours for buyers is that it provides them with inherent social distancing.

Some people who might be planning a move far from their current location may not even have the option to travel right now, so virtual tours are the only way for them to conduct their search.

It’s also convenient, and there’s a lot to be said for that.

When you take a virtual tour, you don’t want to spend time traveling to the property if it’s something you’re not interested in.

Even if you don’t buy your home completely sight unseen, virtual tours can save you time in the overall process.

Virtual tours can help you get a handle on what you like and don’t like as well.

What Are the Cons of Virtual Tours?
There are downsides to virtual tours. First, you don’t get the full sensory experience of a home. It sounds silly, but homes have a “vibe” and you may feel one way or another about a space when you’re there in person. You don’t feel what the ceiling heights are as an example, or what the finishes feel like.

You’re also not getting a feel for the location if you buy a home without seeing it first. You can ask your real estate agent to provide you with information and perhaps even a virtual tour of the neighborhood, but still, it’s not the same as seeing it for yourself.

Tips for Virtual Tours
If you’re a buyer, there are some things to know going into virtual tours.

First, know what to ask your real estate agent if you’re doing a live tour. For example, remember to ask about the fundamentals like the laundry room, the garage, and the storage spaces. Have your agent show you the roof and the foundation, as well as the less glamorous parts of the house like the water heater and the furnace.

If possible, even if you aren’t going to go to the home, but you live relatively close by, try to drive around and see what you think about the neighborhood.

Finally if at all possible think of virtual tours as one part of your home buying process rather than a complete replacement. They can supplement your experience and save you time, but if you have the chance to go into the home it can help you visualize yourself there.

How Buyers Can Navigate a Seller’s Market

Most analysts would say that currently, we are in a seller’s market. The summer of 2020 has been an interesting time. While the coronavirus has negatively impacted much of the economy, real estate has been surging.

Much of this is likely due to the low interest rates, hovering below 3%. There are other factors too, including pent up demand following strict lockdowns during the spring, and for some people, there’s a focus on moving to the suburbs and away from bigger cities.

If you want to buy, there are a lot of factors in your favor right now, but also challenges because it is what you would characterize as a seller’s market.

In June, the median home price nationwide rose to $295,300, which was in part not only because of the factors named above but also because of low inventory.

Also, while we’ve talked a lot about unemployment over the past few months, we have to consider that many people didn’t lose their jobs. In households where people stayed employed, they may feel like they’re financially secure enough to buy a home.

Sellers are finding that they’re getting multiple offers and offers well above ask.

So what can buyers do during this time?

Be Decisive
If you’re going to jump into a seller’s market headfirst, you’re going to have to be decisive. Time is critical in these situations, and sometimes getting the home of your dreams is as simple as being first.

If you want to see a home that goes on the market, don’t wait until the weekend for a showing. Try to get a showing as soon as you can, or if that’s not possible, do a virtual showing.

Along with being decisive and ready for what’s coming, choose a great real estate agent. You don’t want a real estate agent who you’re playing phone tag with during a seller’s market, because you’re losing precious time. You want someone sharp and responsive.

Submit a Clean Offer
During a seller’s market, it’s not a good idea to give an offer with contingencies. This might actually mean the difference between offers for a seller. A seller might be more interested in finishing things up quickly rather than getting a higher price for their home.

If you can give up some of the traditional contingencies, then a seller might think your offer is more appealing because these provide you with chances to back out.

You can still protect yourself, even without contingencies. For example, maybe you get your loan completely underwritten. This means you go through the full loan process before you make an offer.

Let Go of Perfection
The inventory is really limited right now, and demand is high. This makes it even less likely that you’re going to find the perfect home, and that’s okay.

It’s sometimes better to buy a good home and then make it perfect rather than waiting for perfection to hit the market. There’s a very strong chance that even when inventory expands, there still won’t be a perfect home.

Be Disciplined with Your Budget
When bidding wars are possible, and things are competitive among buyers, it’s easy to get carried away. You may get so emotionally attached to a house that you’re willing to go well beyond your budget. Emotions are also heightened when you’re buying a home anyway.

Set a budget, and don’t let yourself go above it, no matter what the other offers may look like.

Sure, offering too much may get you the house, but it’s going to create financial stress for you for years to come.

Offer More Earnest Money
Earnest money is something like a deposit and you provide it alongside your bid. It’s a way to show the seller you’re serious, but if the deal doesn’t go through you can get that money back.

Usually, you’ll see buyers offering around 1%, but during a hot market, think about offering more. It shows that you’re more invested in the deal and less likely to let it slip through your fingers.

If you have the option to pay with cash, that’s almost always going to win you favor. Cash offers take out the element of financing contingencies, and they make for a simpler transaction, which is beneficial for buyers. A cash buyer also tends to be more serious, and when you buy with cash you’re not beholden to the lender through the closing process.

Finally, if you do enter the market and find that it’s not working for you, or maybe you’re nervous about the prospects, consider waiting. It’s easy to get carried away even in a buyer’s market. A seller’s market can be even more likely to lead you to make a poor financial decision.

Of course, it’s tough to time the market, but if you do have some flexibility in when you buy, consider holding off.

Position Realty
Office: 480-213-5251

Contact Form Powered By : XYZScripts.com
Info