3 reasons Covid19 may benefit home buyers in 2020

In these uncharted waters we can only turn to data to make predictions for the future of the real estate industry, regardless of the location. As real estate brokers are deemed essential while others are unessential, we are being forced to get creative with the ways we conduct business while also staying informed about the market from the ground (or rather, from our homes).

Here are 3 reasons why Covid19 may benefit home buyers in 2020:

1) There will be fewer real estate agents, especially those who got in the business because Million Dollar Listing made it look easy.

Only the prepared and resourceful agents will make it out of this, which means you could face fewer inexperienced, lazy agents during your search. If you use Zillow or Streeteasy and are frustrated when you're connected to an agent who simply "paid for your call," or if you feel like you're being tested on by an inexperienced agents, only to lose time, and maybe even money, the experienced agents are still pumping out valuable information. They've also pivoted to offer virtual services, not tomorrow, but weeks ago. Unfortunately we are already seeing many agents simply leaving the business.

2) Home values will not increase at the same level we've experienced.

While every market is different, we are seeing homes sitting on the market a bit longer. Even those that are vacant and can be safely shown, buyers are more skittish right now. This could lead to listing values leveling out, or even going down in some markets. But remember, every market is different. In markets where there is a shortage of inventory, even pre-Covid, we are seeing homes taking a bit longer to sell.

3) The listing and closing processes are being refined.

This is one I'm very hopeful for. For anyone who has ever bought in New York City, you know it's a hurry up and wait kind of process. With a timeline that can stretch 3-4 months from contract to close, much of that time was spent processing paperwork, waiting for boards to arrange schedules to interview buyers in person, etc. I am already hearing about a shift to digital applications and Zoom interviews, which should make the process a bit more efficient. Nationally we are also seeing appraisers with the ability to do drive by appraisals, and some can even do appraisals from home. With more virtual tours and technology to let buyers preview homes before they step foot in the home, buyers can save time on their search.

Overall, I strongly feel that even though home buyers will "learn alongside the agent," never have there been more hands on deck to figure out how to keep buyers buying and sellers selling!

If you have any questions or need help with buying, selling or renting anywhere in the world please don't hesitate to reach out!

Karen Stone | 917-858-1261 | [email protected]